Commercial LOC Against 9 Improved Lots, Possible?

[Landon Thomas]

Has anyone recently/ever received a LOC against improved lots? How did you pitch the opportunity to the lenders?

We have 9 improved lots that are part of an existing subdivision near Kenosha, WI. They were purchased with cash 2 years ago for $114,000 and are now valued at $540,000. All utilities are stubbed, roads and curbs in place. New construction values in the area still don't support completing the development, so we are waiting the market out to see about building in 1-2 years. Values in the area are going up, city has nearby mix-use project draw up, reasons to believe market might support in 1-2 years.

I've talked with only a 2 lenders that weren't interested in commercial LOCs structured this way. I have a list of more local/regional banks/CUs to call, but being new to commercial lending, I think my stumbling along and lack of knowledge is hurting my chances.

We would really like to leverage what we have there on other opportunities. Any thoughts? Should I be looking at this another way?