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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Farmland Posted by Joseph on August 16, 2006 at 6:55 AM In Reply to: Re: Farmland posted by Sara_CA on August 16, 2006 at 1:31 AM I wouldn't sell on the terms that the buyer wants. Welcome to the world of RE. Raw land is just about riskiest of all RE and even a year could be fast in this market. I sold raw land that took 6-7 years in down markets. If you could tell me want the economy will do over the next five years I could hazard a guess as to the risk in the deal. The risk could be anywhere from <10% to 90%>. Last week a group of economists predicted the chances of a recession in the next year at 25% up from 20% the prior month. This was reported in the WSJ. My guess is the economists are about right. What are the chances within the next five years? 75/80%? If there's a recession there's an high probably that you'll have to foreclose. Personally I think the guy is either half-baked or giving you a lot of BS. Zoning can be changed, so don't bet your first-borne on the land never be subdivided. How much time does it take to sell the land? If you don't have it listed, then you should. If you don't want the distraction in raising your family, let me assure you that you will be distracted when the deal goes south and you have to foreclose and then have to resell the land. Generally land loans are non-amortizing and the borrower pays interest only, but it depends on how smart the lender is. Just because the lender is a bank doesn't make them smart. That means as soon as there is a bump in the road and the guy (with good credit and nothing in the deal) can't or won't make the interest payment you got problems. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : I wouldn't sell on the terms that the buyer wants. Welcome to the world of RE. Raw land is just about riskiest of all RE and even a year could be fast in this market. I sold raw land that took 6-7 years in down markets. If you could tell me want the economy will do over the next five years I could hazard a guess as to the risk in the deal. The risk could be anywhere from <10% to 90%>. Last week a group of economists predicted the chances of a recession in the next year at 25% up from 20% the prior month. This was reported in the WSJ. My guess is the economists are about right. What are the chances within the next five years? 75/80%? If there's a recession there's an high probably that you'll have to foreclose. Personally I think the guy is either half-baked or giving you a lot of BS. Zoning can be changed, so don't bet your first-borne on the land never be subdivided. : How much time does it take to sell the land? If you don't have it listed, then you should. If you don't want the distraction in raising your family, let me assure you that you will be distracted when the deal goes south and you have to foreclose and then have to resell the land. : Generally land loans are non-amortizing and the borrower pays interest only, but it depends on how smart the lender is. Just because the lender is a bank doesn't make them smart. That means as soon as there is a bump in the road and the guy (with good credit and nothing in the deal) can't or won't make the interest payment you got problems. 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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