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Lenders leery as investor seeks to exploit loophole in homestead law. (LandRush Realty Corp.'s Bill Hawkins; Texas' law prohibiting home equity lending)
When Bill Hawkins said last year that he had found a way around Texas' prohibition on home equity lending, many bankers said the plan wouldn't work.
Undaunted, Hawkins now has an offering circulating to sell $100 million in notes to fund his business. And he's found a willing borrower. What he still lacks is cash and support of banks.
"We've got our first property on the table," Hawkins says. "We feel like we're offering an attractive investment."
Texas is the only state in which lending against a homestead is forbidden for purposes other than purchase money, taxes or home improvements. But Hawkins thinks he and his company, LandRush Realty Corp., have …
