Have you loaned funds using a land contract as security?

[Jeff Rabinowitz]

I have sold much of my rental portfolio under land contract terms to other investors. (The terms state clearly that the loans are for business purposes and for non-owner occupants. Also, the borrowers are LLCs operated by successful investors.) I have started to buy homes and sell them immediately on land contract. The terms are 3 years with balloons. I expect many of the notes will be retired early (some already have been.) I know it is fairly easy to sell the land contracts or partial payment streams of the land contract. (My contracts allow me to do this.) However, since the notes are likely to be outstanding for a very short time I would prefer not to discount the balloon payment much. 

This is a cash intensive model. It occurs to me that if I can sell the paper then there should be a way to borrow against it. If I could borrow 50%-60% of the upb it would allow me to do several more deals. (My contracts are usually at 80% or less of the arv so any lender would be well secured.) Have you seen lenders take a land contract as security for a loan? Could you refer me to anyone who has done it? Thank you.