Yes, I am speculating on appreciation over the next 10 years to 15 years.

How the file is put together and what is in the file is what the lender depends on.You are clearly speculating on the future if you buy a lot and expect that its value will go up from future demand.

They recently prosecuted a speculator that took over 39 properties in land trusts and subject to existing financing.

You can do better with CD's and have not risk or hassles.People buy these based on speculation.

The whole mess was based on speculation of ever-increasing house prices.

Could either of you speculate on the interest rate (a range is fine) that a hard money lender would charge on a loan of this type?

From what i've seen in Charlotte, a number of homes were listed but didn't sale but not neccessarily because the market flattened out....Many homeowners got it in their heads that their homes could sell for whatever they listed for or got into the mind set of "if I can sell it for what I'm listing it for, I'll move"....In other words, homeowners tried to speculate on the market and listed their homes artificually high hoping to make a killing when they really had no intentions or need to move....

I would avoid speculation/betting on the draw starting out.An important key is to determine what sells the most in your market then align your purchase to whatever is getting the most turns.

Mostly due to the properties being out of their region or the speculative nature of these loans.Understandable, but this is before I even mention anything about the loan specifics or investment background.

Speculation is still a valid, if risky, investment approach.