Land Cash Out Loans

Cash Out Loans on Land You Already Own

Your land is sitting there free and clear while your next deal needs cash. We lend against it in 7 days, with no appraisal, so the equity goes back to work.

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Vacant land owned free and clear, the kind of parcel Damen Capital lends against with a cash out loan

By Eric Scharaga, Founder of Damen Capital · Published September 23, 2026

Can I get a loan on land I already own?

Yes, if the money is for a business purpose and the land is held in an entity. We make cash out loans on vacant land that land investors already own. You keep the land, we record a first lien, and you get cash at closing. Loans run $30K to $1M, close in 7 days, and need no appraisal. The loan is interest only for 24 months.

Most banks will not lend against raw land at all, and the ones that do want an appraisal, two years of tax returns, and 60 days. Land investors usually need the cash for the next deal, and the next deal will not wait 60 days. That is the gap we fill. We value the land from recent comparable sales in the county, the same way we value a purchase, and we fund at a title company or closing attorney.

This is a business loan. The borrower is an LLC or other entity, and the cash goes to the land business. We do not make cash out loans for personal use.

Have a deal in mind?

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How much can I borrow against my land?

Up to 50% of the lower of the land's value or what you paid for it. We take two numbers: the conservative value of the land today and the price you paid. We use whichever is lower, then lend up to half of it. If you paid $150,000 and the land is worth $200,000 today, the base is $150,000 and the loan is up to $75,000.

Why the lower number? Because land values are soft and land prices are real. What you paid is a fact on a closing statement. A value is an opinion, and on vacant land opinions run high. Using the lower number keeps the loan safe for both of us. If the land does not sell for what you hoped, you are not stuck with a loan bigger than the land will pay off.

Run your own numbers in the instant land loan quote. Pick Cash out refinance, enter what you paid and the value, and it shows the loan and the cash to you before the doc fee and title costs.

What can I use the cash for?

Anything in your land business. Nothing personal. Buy the next parcel, cover a down payment, pay a partner out of a deal, pay for surveys or platting on another project, or keep your business running between sales. The loan is business purpose only, so home remodels, cars, tuition, and personal debts are out. We ask what the cash is for on the application.

One thing to know before you ask for a cash out: if the cash is going into a down payment on another parcel, cross collateral usually gets you further. Pledge the land you own as extra collateral on the new purchase and we can finance 100% of the new price. You keep more cash in your pocket, and both liens release when the new parcel sells.

What if there is already a loan on the land?

We pay it off at closing and you get what is left. Our loan has to be in first position, so any loan already on the land is paid off from our loan at closing. The loan amount is still 50% of the lower of value or what you paid. If the payoff on your current loan is more than that, a cash out will not work, and we will tell you on the first call.

Have a balloon payment coming due and just need to pay it off, with no cash out? That is a land balloon refinance, sized up to 65% of value.

What does a land cash out loan cost?

Same terms as our purchase loans: 14% at $100K and up, 16% under. Interest only, paid monthly starting 30 days after closing. 5 month minimum interest, $600 doc fee, 2% exit fee at payoff, $25 a month servicing. No points at closing. No prepayment penalty past the 5 month minimum. Your 24 month term gives you room to sell the land or refinance.

Here is the example above. A $75,000 loan at 16% is $1,000 a month in interest. Hold it 8 months and that is $8,000 of interest, plus the $600 doc fee, $1,500 exit fee, and $200 of servicing, about $10,300 for the use of $75,000. If you pay off in 3 months, the unpaid months through month 5 are collected at payoff, not at closing. Do the math on the deal the cash is going into. If it cannot beat that number, keep the land free and clear.

What land qualifies for a cash out?

Vacant land, 2 acres or more, with legal access and real comparable sales. The land must have legal access, not sit mostly in wetlands or a flood zone, and be in a state we lend in. We do not lend in California, Arizona, Nevada, New York, New Jersey, North Dakota, South Dakota, or Vermont. No commercial property. The borrower is an entity, and the loan is business purpose.

Land you bought recently at a discount is a good fit, but remember the price you paid caps the loan. Land you have held for years usually has a low price paid and a much higher value, so the price paid still sets the base.

Program Terms

Loan AmountUp to 50% of the lower of value or price paid
Loan Size$30K to $1M
Rate14% ($100K+) / 16% (under $100K), interest only
Term24 months, 5 month minimum interest
BorrowerEntity borrowers, business purpose only
Closing7 days, no appraisal, quote in 24 hours
Costs$600 doc fee, 2% exit fee, $25/month servicing
Minimum Size2 acres, legal access
Not Available InCA, AZ, NV, NY, NJ, ND, SD, VT

Related programs: Land Flip Financing · Subdivide Financing · All Land Loans

Common Questions

Can I get a loan on vacant land I own free and clear?

Yes. We make cash out loans on vacant land owned by an entity for a business purpose. $30K to $1M, no appraisal, 7 day close, interest only for 24 months.

How much cash can I take out of my land?

Up to 50% of the lower of the land's value today or what you paid for it. Paid $150,000, worth $200,000: the loan is up to $75,000.

Can I use the cash for personal expenses?

No. These are business purpose loans only. The cash goes into your land business: the next parcel, a down payment, a partner buyout, survey or platting costs on another project.

Is a cash out better than cross collateral?

Not if the cash is for a down payment on another parcel. Cross collateral pledges the land you own on the new purchase and can finance 100% of the new price, so you keep your cash.

What does it cost?

14% at $100K and up, 16% under $100K, interest only. 5 month minimum interest, $600 doc fee, 2% exit fee at payoff, $25 a month servicing, no points at closing.

Related Reading

Own Land Free and Clear? Put It Back to Work.

Send the parcel, what you paid, and what the cash is for. Quote in 24 hours, close in 7 days.

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Eric Scharaga, Founder of Damen Capital
Eric Scharaga
Founder, Damen Capital

Private lender and direct land note buyer serving land investors nationwide. Featured on REtipster, Legends of Land, and Land Investing Online. LinkedIn →

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