Best type of financing for commercial vacant land?

[Seth Jayne]

Hello BP,

Thanks in advance for the advice. This has likely been discussed many times however I am sure this changes from time to time. I have 2.8 acres of vacant land. I would like to do a cash-out refi on the property. What is the lowest-cost source of financing on commercial vacant land? I own the property free and clear and I use the property to store my companies equipment there. I know the SBA does real estate loans but how else should I shop for the best deal? Brokers maybe?  

Thank you,

Seth 

[Greg Dickerson]

Originally posted by @Seth Jayne:

Hello BP,

Thanks in advance for the advice. This has likely been discussed many times however I am sure this changes from time to time. I have 2.8 acres of vacant land. I would like to do a cash-out refi on the property. What is the lowest-cost source of financing on commercial vacant land? I own the property free and clear and I use the property to store my companies equipment there. I know the SBA does real estate loans but how else should I shop for the best deal? Brokers maybe?  

Thank you,

Seth 

 Your only option will be a local commercial bank. You need to shop several as they all offer different rates and terms.

The SBA does not fund real estate from an investment standpoint or vacant land. They will fund owner occupied businesses and real estate but not vacant land or rental property.