LoC or Cash Out Refinance against Land

[Juan Monge]

Hi,

Can anyone share some thoughts and/or past experiences of taking out a line of credit or doing some type of cash out refinance against land that is owned out right? I am in contract to purchase a piece of land which is in a developing area and now zoned commercial. I am in early discussions with the owner of the lot next door to purchase that lot as well. The plan would be to

combine the lots and either a) commercially developed or b) market / sell for commercial use. My concern is that both of these options could take some time and I would have a good chunk of capital invested in the lots.

Thanks,

Juan Monge