Using Vacant Land as Collateral to Acquire Properties & Invest

[Nick Runnebaum]

Hi BP Community! First-time poster here with a question that really hasn't been answered for my situation that I could find. I own vacant land (buildable and once excavated for that matter) free and clear. Based on comps right down the road from it the value is just north of $250k. What I want to do is use that vacant land as collateral to acquire investment properties (flips, rentals etc.) I am seeking guidance and examples of others who have done this and what were your lessons learned? If you wouldn't mind the lending basics like what was the LTV % given, was the appraisal process easy/difficult, did you shop that appraisal to multiple banks, how did you choose your lender etc.

Additionally, I'd like to understand how funds are distributed.  Is it as simple as:  see land, appraise land, lend lump sum money or is it more complicated in that the lenders will typically lend in draw payments depending on use of funds? 

To sum up, my ideal scenario is that the land is appraised (for ease of numbers) at $200k.  I take that to a lender and get a 30-50% loan based on what I've read.  I take that $60-100k, everyone can dream right, and start my real estate empire.  I've just recently purchased my first duplex and house hacking my way to a mortgage free life.  This collateral would greatly accelerate my goals.  Thank you in advance for reading and I look forward to hearing from you.

Nick