Hard money lenders for land

[Steve Hansen]

Hi folks, has anyone found a hard money lender or private lender for land deals? I've contacted a few of the hard money lenders listed here at Bigger Pockets and so far they've all said they don't lend on that asset class.

I'm in negotiations on a small parcel that has the well and electric service installed, and my girlfriend and I have tiny houses that we want to place on the parcel. We are both self employed, so a conventional bank is iffy until 2018 or so.

Thanks,

Steve

[Casey Mericle]

Hard money lender's don't like to lend on land that much. The reason for this is land eats three meals a day interest for breakfast, principal for lunch, and taxes for dinner.  Second and maybe the bigger hurdle is it hard money lender's lend their money based on collateral. If they have to foreclose, that collateral is worth something if there's a building on it, with land it's not worth nearly as much. My suggestion to you would be to learn how to creatively  finance that land.  Lease option, owner carry back, contract for deed, etc.