Line of Credit Secured by Land

3 Replies

I currently own 70 acres of land free and clear near Willow Springs, Missouri. I am looking for a lender from whom I can get a personal line of credit similar to a home equity line of credit secured by this land. However, there is no home on the land, so it would be more like a “land equity line of credit,” if there is such a thing. I just want to be able to utilize the equity I have in that property without selling it. The land is a combination of forest and pasture with two storage sheds, a water well, and no other improvements.

I intend to use the LOC to pay for rehabilitation, down payment, and/or holding costs that will be necessary to buy, rehabilitate, and then immediately resell residential properties for profit in Colorado Springs, Colorado. This will be my first real estate deal. After reselling these properties, I want to be able to pay off the LOC but then still have that LOC available for the next house flip; that is, I prefer a LOC over a loan because I hope to repeat this process many times.

Has anyone ever heard of a lender extending a line of credit like this secured by land? Or is there any chance someone might be able to point me in the right direction?

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