Land rich, cash poor...what do I do??

[Aaron L.]

Hey BP,

I have a friend who owns tons of land free & clear..it's been in his family for decades. The land is "landlocked" by other parcels of land around him...so there's not much access to it. The government has expressed interest in buying it, as well as an oil & gas company that wants to mine it...however, none of that has materialized so far.

So here's the question: how can he access the equity in his land in order to purchase cash-flowing assets? He's looked at an equity line, and they might lend 30-40% LTV. The rate would be high due to the fact that it's vacant land, like 8 or 9%, but could potentially give him access to a few million (land is worth 10 mill+).

Also...How would you invest that money? First thought is apartment buildings... He wants to create a passive income stream to support his family long-term. Also, he's a total newbie with no RE experience other than renting out 1 SFR a few years ago.

Thanks in advance for the help!