Using Seller-Financed Land as Collateral to cover 20% DP for Construction Loan...?

Using Seller-Financed Land as Collateral to cover 20% DP for Construction Loan...?

Investor · TX · Member since 2023 · 8 posts · 4 votes

Hello BP Family,

I am looking to acquire land in Houston for first development project. I would like to know if I can preserve some/all of my liquid capital by avoiding an all cash deal for the lot/land.

My thought process is... Acquire the land through a seller-financed deal for the deed to the land and use it for collateral to cover the 20% down payment needed for the construction loan. 

Once construction is completed and townhouses are sold I will pay off the seller I financed the land from.

Is this feasible?

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  • Rental Property Investor · Member since 2018 · 29 posts · 3 votes
    2y

    @Earl Burl III

    I would like to know that as well. Especially seller financing land?

  • Investor · TX · Member since 2023 · 8 posts · 4 votes
    2y
    Quote from @Noel Dixon:

    @Earl Burl III

    I would like to know that as well. Especially seller financing land?

    Noel here is the other post that received responses. Please follow link below:

     Other Post

    I will delete this post after your confirmation

  • Rental Property Investor · Member since 2018 · 29 posts · 3 votes
    2y

    @Earl Burl III

    Thx

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