Heloc on bare land?

[Mike Reynolds]

Is it possible to get a HELOC on bare land? I know not everyone lends in this category so I was wondering if anyone has done this?

[Robert Dobbs]

If you asked me that same question, "pre-2006", ...prior to the "real estate bubble", I'd say yes, ...as certain banks were doing "land lending". But it all "crashed and burned" after the "real estate bubble". Land prices "peaked in 2006, 2007", and then land prices "nose-dived". Can you imagine that Florida land selling for $20,000 to $30,000 per lot, crashed down to as low as $2,500 per lot! Banks and lenders that were financing land ("pre-bubble"), were faced with "a ton of foreclosures". Towards the end of 2009, is when I began buying "land REOs" from banks. I didn't realize just how "motivated" certain banks were to unload their "land REO" inventory. In November 2009, I received an email ---------> "21 bank-owned" parcels for sale"! These were "Central Gulf Coast parcels" (an area called the "Nature Coast"). These 21 parcels (sizes: 1/2 acre to 1 acre each) were being offered for sale through a Realtor for $8,000.00 per parcel! I Googled these 21 parcels (I.e., "satellite and street views"). They looked beautiful and the area had some nice homes "scattered around". I never purchased vacant Florida parcels before. I "dug-deeper",...looking more into the "Nature Coast", ...Central Florida's "Gulf Coast", ...and I was impressed. I called the listing agent for the bank and said I'm interested in those 21 vacant REO lots. I explained that I'm a Realtor also, and I would like to offer $1,200 per lot for all 21 REO parcels. The agent said, "are you crazy?" The bank is asking $8,000 per parcel! I said to young Preston (the bank's Reator), "...we are both Realtors, so I'll send you a contract and just submit it to the bank and "let's see" what the bank says about my offer? He (young Preston) then said ok! I then got a call from Preston the agent the next day and he says to me, "Mr. Dobbs, I can't believe it! The bank accepted your offer! If you can close by the end of the "bank year" they will do the deal! Since the end of 2009 to 2020, I have directly purchased well over 500 vacant REO parcels from this same bank! And sold another 200 or so parcels as a Realtor for the bank. My reason for talking about this is this bank stopped loaning money for vacant land, except for REOs. They would offer 15 year financing for REOs (land) at "market pricing". If I brought them a buyer-prospect, let's say for one of those $8,000 lots (that they sold to me for $1,200) They would finance an "end buyer" for $8,000 for 15 years. Plus as they years went by, the bank also allowed me to make "bulk deals", with zero interest for 6 months (I called these bulk deals, "step-down" contracts). I would have to close on a minimum of 20% of the bulk deal each month, until all were closed (note: But I never had to go six months,...as I usually had sold all of the "bulk deal", ...within 30 to 60 days!). Since the "real estate bubble" buying and selling land, with a "ton of hard work", I'm proud to say, ...has changed my life!