I would also expect the bank to significantly undervalue the land if you have owned it for a long time, they are trying to minimize their risk and land it not exactly a liquid asset.Construction loans are risky business for banks. 

@Kalib WilliamsYes, but no.Any debt instrument under the umbrella of a 401(k) must be non-recourse - meaning no personal guarantee from you or a disqualified party to the 401(k).While the 401(k) could probably obtain a non-recourse mortgage and pull cash liquidity that could be used to make other investments, this would not likely be a line of credit. 

Would it not be more advantageous to keep yourself liquid, letting the tenants take care of your payments?

Oh and I plan on liquidating my stocks at the start of 2020 so I practice what I preach.2.

And courts recognize that not every contract is feasibly enforceable simply as liquidated damages.

Publicly traded mREITs in liquid stock market (no barrier to entry, 100% passive) give 10-15% monthly dividend, so it makes sense for the returns from private lending to exceed at least 15%.

As we create, manage, and liquidate more funds to create a track record and continue to provide information of value through content based marketing, I believe that our efforts will snowball to the point where raising capital won't be a future problem.Increasing efficiencies is an ongoing process and is handled on an ad hoc basis depending on demand, cost, and discovery.

The plan was to move onto that property, but we might be better off liquidating it into more flexible assets.

Not unless you have a long history with them and your liquidity and net worth are on the high side.

We plan on aggressively purchasing more in the next 3 years by allocating by liquidating some of our stock portfolio to REI3) We have an old trust, and thinking about creating a new one so we can include our new propertiesSo the questions are:1) When is a good time to think about putting our properties in a LLC as a way to shield our other assets.