My realtor is really in to the historic homes in San Antonio and he brought it to me through his contractor (network is everything!).

We have an existing mortgage (backed by these 2 lots and 2 others) and given the increase in appraised value there is no need to pay anything back to the lender when selling the lot.

As another poster mentioned rates are lower than they've been in the previous 18+ months but unless some very surprising economic data comes out between now and when you did your refi it seems unlikely that rates are going up in the short term and there is at least a decent chance that rates drop a little more before then. 

What’s the purpose of the loan and what is the collateral?

The goal is to build a portfolio along the way. 1.

@Louis GordonReal estate notes is another name.

Quote from @Micheal Smoke: Hi, my name is Mike Smoke, and I'm an aspiring real estate investor focusing on multifamily and Section 8 properties in the U.S. as the barrier to entry is much much lower in terms of price compared to Canada and Funding options. 

Wise lenders have borrowers sign legal agreements and have them provide collateral that is worth more than the amount of the loan in case the borrower doesn't make the promised payments on the loan.

Madison Management out of reno is who we use who ironically used to be in Morristown NJ

New Jersey is not a horrible state for investing it is more so certain towns and cities that give NJ a very bad name.