InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Code References 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Farmland Posted by BigMike on August 14, 2006 at 11:43 PM In Reply to: Farmland posted by Sara_CA on August 14, 2006 at 9:33 PM I've been involved in a few AG deals in Calif both in Kern Co and up in your area. Usually lenders (1st note) do 70% and then the Sellers do some carry back. I personally don't like 100% financing deal, but I have worked couple where the income made sense. With vacant land, I would cautious as the Seller is coming outof pocket for the payment. I think you need to understand his plan for the land. Its sniffing out what is his exit strategy. I think your rate and terms are fine all things considered, but as mentioned are you prepared to step in if the default on the 1st note. How much is the value of the deal? These AG land deals can run into the millions and how you react is a bit different Thoughts for dude with some experience (not a pro) : 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. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : I've been involved in a few AG deals in Calif both in Kern Co and up in your area. Usually lenders (1st note) do 70% and then the Sellers do some carry back. I personally don't like 100% financing deal, but I have worked couple where the income made sense. With vacant land, I would cautious as the Seller is coming outof pocket for the payment. I think you need to understand his plan for the land. Its sniffing out what is his exit strategy. I think your rate and terms are fine all things considered, but as mentioned are you prepared to step in if the default on the 1st note. How much is the value of the deal? These AG land deals can run into the millions and how you react is a bit different : Thoughts for dude with some experience (not a pro) : : 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. 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

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2006, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455