Financing for raw land

Land banks are your answer
first south farm credit has been good ( much better than 10%) to me

Id reach out to First South Farm Credit at their Thibodaux office (Ben or Tommy). I've dealt with them a few times for timber/hunting land purchases. Good people to work with and I closed with them recently, it'll be better than 10%, but keep in mind that interest rates in every loan sector are terrible right now and raw land financing is higher risk in the eyes of the banks, so set your expectations accordingly. The days of 3% interest land loans are a few years in the past.

I just financed a farm and sent a loan package to 4 different lenders. The company that had the best rate and terms was Prudential. Their lending arm is called PGIM. I would sure give them a call. The guy I dealt with is in Jonesboro, Arkansas

Timber sucks financially. I would be tempted to pay the seller $4000 an acre if he will clear cut the pines and pile the limbs.

I've never done one like that before. So what happens after the first 7 years are up? Just principle for the remainder of the term? Sounds too good to be true.

quote:

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So what happens after the first 7 years are up? Just principle for the remainder of the term? Sounds too good to be true.

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It’s called hybrid financing

At the end of the 7yrs, if you don’t refinance it, it becomes an ARM (adjustable rate mortgage)

Thank you for all the responses.

This definitely looks like the best thing going as far as I can tell. Hopefully in 7 years interest rates will be creeping back down instead of up! LOL

I'm dealing with a large land management company to buy this land. They represent several smaller subsidiaries. I would like to get a cheaper price per acre and also would like to buy a few more acres than we have talked about in the initial conversation. Does anyone have any good strategies for doing this?

My initial offer was $3,000/acre

Their reply is $3,500/acre

I'm curious if I offer to purchase another 100 acres or so if they'd be flexible. The land is in a rural community and isn't being developed like other places are right now. The topography is rolling with wetlands around the perimeter for the most part acting as a barrier between it and the connecting property. Really good property for growing pine trees but not so much for pasture conversion.

Anyone know any savvy negotiating strategies for raw land?

I have a couple of guys that would attend the LSU Football signing day Bash. They are in the timber business. They know timber sales. If you could get a little money out of the timber, that would offset your cost.

Because you can do a lot of things with land...