Can I get a line of credit on land?

[Hunter Perkinson]

Hello BP,

I am still extremely new and have never invested, but have just been researching, educating myself, and brainstorming on the potential ways I can get started. I am leaning towards a fix and flip but am wondering, like many other first timers, how to purchase a property without any money. I dont have enough money saved to put as a down payment on a traditional bank loan and I dont own a property that I could use a HELOC on. HOWEVER, what I do have is land. Myself, as well as several other family members own this land through a Trust. I know that I would have to get their approval before taking out a line of credit on the land since they have rights to it as well. But, I wasn't even sure if banks would provide such a loan. Does anyone have any experience with lines of credit on land or any insight at all?

[Bryan Hancock]

You can get an unsecured line of credit without land. So yeah, you can get a lender to loan you money on a line using the land as collateral. Most lenders are likely to value this collateral very little though because it is hard to liquidate in the event they have to take it to secure their debt. If you look at many REO lists from banks much of what is on their books is land. There is a reason they're conservative with lending with land as collateral.