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bank for investment land

Posted on 5/22/17 at 3:28 pm
Posted by Rust Cohle
Baton rouge
Member since Mar 2014
1944 posts
Posted on 5/22/17 at 3:28 pm
looking for a bank to finance land for rental investment. The credit unions Ive spoken to will only do it with the intentions of building for a primary residence. My business is not well established, so I may not be eligible for a business loan. I really want to pay cash for the land and do a cashout refinance, but they even seem less interested in that. Any suggestions? Might try a large bank like wells fargo next
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 5/22/17 at 3:50 pm to
First south?
Posted by BigD13
French Settlement La
Member since Sep 2013
2513 posts
Posted on 5/22/17 at 4:55 pm to
I went through Whitney bank when I purchased 5 acres in 2015. If you have 10 percent down and the appraised value of the land comes back according to purchase price you should be good to go.
Last week I called the same banker I used in 2015 to finance a 92 acre tract and he said that they couldn't finance any raw land > 10 acres.
Now I'm just starting this process with Louisiana land bank. No details yet
Posted by KillTheGophers
Member since Jan 2016
6211 posts
Posted on 5/22/17 at 10:49 pm to
quote:

First south?


Unless he is a farmer, it won't fly - anyway, there are much better farm credit options out there than First South

South Ag Credit
Louisiana Land Bank

these places make first south look like amateur night
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17258 posts
Posted on 5/24/17 at 1:25 pm to
quote:

Last week I called the same banker I used in 2015 to finance a 92 acre tract and he said that they couldn't finance any raw land > 10 acres.
Now I'm just starting this process with Louisiana land bank. No details yet


looking at similar and what I have found is Southern Ag credit and first south farm credit will offer 30 years fixed at 5-6% and require 20% down, LA land bank 20 years fixed and 20% down
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17258 posts
Posted on 5/24/17 at 1:28 pm to
quote:

Unless he is a farmer, it won't fly


Looks like I am a fixing to be a tree farmer. exploring deductible business expenses associated with that now (tractor, 4 wheeler, travel, fertilizer, etc, etc)
Posted by KillTheGophers
Member since Jan 2016
6211 posts
Posted on 5/24/17 at 6:47 pm to
Any farm credits will do 30 years -
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17258 posts
Posted on 5/24/17 at 7:00 pm to
quote:

Any farm credits will do 30 years


Not according to the loan officer at LA land bank I talked to, they only go to 20 years
Posted by BigD13
French Settlement La
Member since Sep 2013
2513 posts
Posted on 5/31/17 at 10:35 am to
quote:

Looks like I am a fixing to be a tree farmer.


Tell me more about this? I just signed the purchase agreement on a 92 acre tract and I'm looking for the best finance options with 20% down.
Did you use louisiana land bank, Southern Ag credit or South farm credit?
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17258 posts
Posted on 5/31/17 at 7:27 pm to
quote:

Tell me more about this? I just signed the purchase agreement on a 92 acre tract and I'm looking for the best finance options with 20% down.
Did you use louisiana land bank, Southern Ag credit or South farm credit?


You are a step ahead of me, we are still in negotiations, but first south farm credit seems to be the best fit for me, offering 20% down and 30 years fixed at or just below 6%, plus they give you a little back each year if the company does well (as do the others you listed) I have been talking with Ashley at the Zachary office and she has been very helpful

As far as being a tree farmer , does the land you are buying have timber, have the potential to grow timber? If so you can be a tree farmer and deduct expenses associated with

If not, they still do loans on recreational land

Good luck

Where is your 92 acres?
This post was edited on 5/31/17 at 8:40 pm
Posted by BigD13
French Settlement La
Member since Sep 2013
2513 posts
Posted on 5/31/17 at 10:31 pm to
Yes the land has some timber and a lot of potential to grow timber.... but I may or may not ever sell any timber. Would that matter? I have no problem saying I'm a tree farmer if it makes the process easier.
I may just have to give Ashley a call.
Thanks for the help!!

The land is located in Livingston parish, Hwy 22 in Killian.
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