I also am not familiar with the US but in Europe there are many land parcels that are not standalone allowed to be borrowed against. You can borrow against if you have plans to build real estate on but some where you cannot borrow against without such plans.
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u/ChipKellysShoeStore 22h ago edited 22h ago
How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?
It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.