Buying junk lots to increase net worth for collateral

[Marcus Brown]

I was listening to a podcast a few weeks back, Casual Fridays REI, and they mentioned hearing about a lady who would buy a bunch of cheap/useless lots to increase her net worth and then use them as collateral for loans. Is that really plausible? If so I'll slowly load up on small parcels in the desert.

[Don Konipol]

@Marcus Brown

This is an example of another real estate related fantasy that’s been around for at least 40 years. Someone, somewhere might be stupid enough to lend based on a phantom value for the worthless lots. If they lose their money their attorney will ask the district attorney to file mortgage fraud charges against the borrower.