My father and his brothers where left around 78 acres

[Roderic Baker]

Good evening, I’m a newbie but I’m ready for action, my father and his brothers it’s 4 of them where left 78 acres of land in Georgia from my grandmother. They’re in the process of getting it sub divided in the next month or so. My father even mentioned that one of his brothers may sell his share of his portion of the land to him once it’s divided up. My question is, will banks allow me to leverage the value of the land like a heloc or do you guys think it’s a good idea to even try to do it. My dad already told me that he’s leaving the land for me so I’m thinking I might as well use it to help me get started with real estate and not just let it sit there. Any help or ideas are welcome thanks.

[Bill B.]

A little, if a little is all you need. Using MN farm land as an example.

You’ve got 80 acres split 4 ways, so 20 acres. Good farm land is about $4k/acres so $80k, and you can borrow about 40%, so about $32k could be borrowed, assuming it’s good farm land. On the other hand 20 acres of hunting land or dirt bike land near a small/medium town might be worth half that. The same land more than 100 miles from a decent size town might be half of that.  Eventually you get to land in the middle of nowhere that’s worth close to nothing, sometimes less.