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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] more to consider Posted by damien on August 14, 2006 at 10:42 PM In Reply to: Farmland posted by Sara_CA on August 14, 2006 at 9:33 PM : My buyer of a vacant 40-acre farm land wants 100% financing. I understand most agricultural lenders will finance 50%. I will agree to finance the other 50% to get this deal done. But I am not experienced in this. What interest rate to charge for a second mortgage on a farm land? How long? I am thinking of 9.8% interest only loan, balloon at end of 5 years. He does have good credit. Owns a house and other farmland. Am I charging reasonably? Are there any other possibilities or ideas to do this deal? : Land is in Tulare County near Kings County in CA. $6.5K per acre. Alkaline soil, but terrific for building a big country house. : Thanks in advance. Sara, As a lender there is more to consider then interest and payment terms, such as defualts. What if, you will be in second position. Are you able to make payments on the first mortgage to protect your investment? What is the future value of the land?, will it be worth more or less in this market 6 month, 1 year, or even 4 years from now? If you have to foreclose can you sell quickly to recover your initial investment? The interest you charge depends on your rate of return you expect and or if you are licensed (licensed brokers are not limited to rates) Hope this helps you. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : My buyer of a vacant 40-acre farm land wants 100% financing. I understand most agricultural lenders will finance 50%. I will agree to finance the other 50% to get this deal done. But I am not experienced in this. What interest rate to charge for a second mortgage on a farm land? How long? I am thinking of 9.8% interest only loan, balloon at end of 5 years. He does have good credit. Owns a house and other farmland. Am I charging reasonably? Are there any other possibilities or ideas to do this deal? : : Land is in Tulare County near Kings County in CA. $6.5K per acre. Alkaline soil, but terrific for building a big country house. : : Thanks in advance. : Sara, : As a lender there is more to consider then interest and payment terms, such as defualts. What if, you will be in second position. Are you able to make payments on the first mortgage to protect your investment? : What is the future value of the land?, will it be worth more or less in this market 6 month, 1 year, or even 4 years from now? If you have to foreclose can you sell quickly to recover your initial investment? : The interest you charge depends on your rate of return you expect and or if you are licensed (licensed brokers are not limited to rates) : Hope this helps you. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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