Looking at buying some land....

[Rack Daniels]

Congrats!! I think you’re living the dream bud!!

 

[2rocky]

What sort of equity did the Lender require on Recreational property?

(Without disclosing your personal info or actual dollar amounts of course) What made it something a lender would finance?

 

[npaden]

I financed the 580 acres through Capital Farm Credit. They specialize in lending for agriculture and recreational property. They generally are going lend up to 80% of the appraised value of the property. They are a cooperative so my effective interest is actually going to be a little less than what I'm paying. I've borrowed from them before and they do a pretty good job of allocating and actually paying back their capital credits. Historically they have been giving back about 125 basis points in capital credits so the effective interest rate would be closer to 7.5% instead of 8.83% but it is still painful.