Line of Credit on something you have under contract.

[Steven J.]

I've been having a discussion with another @David Battle about tax delinquent lists and land investing using the strategy of @Seth Williams. I was curious, say I get a piece of land under contract for 30 cents on the dollar but don't actually have the money yet. Can I go to a bank, explain what I have under contract with documentation, and get a line of credit or loan based on that alone? Obviously, a big bank would be hesitant, but would smaller local banks or credit unions be interested?

[Chris Simmons]

Sure.  Depending on your borrowing qualifications, lending institutions make land purchase loans.  If it all checks out in terms of loan policy, appraisal etc...it is possible for them to fund your purchase.