Financial issue? In a good way

[fnfarms1]

Each area is different because of rainfall but here studies show a haybarn will pay for itself in about 10 years in saved hay.

Friend of mine "you will pay to build the hay barn, if you build it or not". Wasted hay cost would have paid building cost.

I knew there would be a lot of opinions but wow had no idea the can of worms I was opening. I cannot say I'd never go back in debt. Land is about the only thing I would go into debt again for. However in my mind, being debt free would make getting a new loan would be easy. 825-850 credit scores, decent jobs, etc should make a new loan that much easier. However I am set to hold what I have and enjoy life debt free if that's where we stay.

Something one ask if our CPA haves us a picture of what our tax picture looked like. Yes he did but there's a ton of factors to it. Cattle prices still good, feed cost down, hay cost down, currently no large expenditures needed, incomes up, etc. normally we get a substantial tax return with kids etc but oldest 2 are aged out and this windfall will screw our return. So we have to account for that since typically that's our hay, fertilizer, insurance money. So estimating is best he can do, hence why holding off and seeing how the rest of the year plays out is the safe move. Safe I realize does make millionaires but we like it. I have friends with thousands of acres and millions in debt. I don't wish to do that. I also don't wish to live in town or on the lake.

 

[wbvs58]

I didn't realize there were so many wealthy tycoons on here, you all seem to have problems with your taxes. I don't have that problem, my aim when I retired was to disappear off the planet as far as our tax office is concerned and I think I have achieved that. I just look at the balance of my bank account to see if I can spend money this week, if I can't I might have to sell a cow or two, works for me.

Ken

 

[kenny thomas]

Soil testing and spending on getting things right is sometimes a pretty good expense that returns well for years to come. Not a life saver on taxes but a 100% write off in one year. Help your land instead of giving it away in taxes.

 

[chevytaHOE5674]

However in my mind, being debt free would make getting a new loan would be easy. 825-850 credit scores, decent jobs, etc should make a new loan that much easier.

My experience has been the opposite. With no debt the bank had no recent history of timely payments the bank was "unsure of our ability to pay". It wasn't easy to borrow 120k to buy this farm, fast forward a few years we are still paying on that 120k note and the place across the road comes up for sale for 500k, bank had the approved mortgage within 24 hours because as my banker said "we know your good for it now".

At the time of the original struggled 120k mortgage we had 800+ credit scores, 1 good off farm job, no debt, and more than enough savings to purchase it outright.

 

[Brute 23]

My experience has been the opposite. With no debt the bank had no recent history of timely payments the bank was "unsure of our ability to pay". It wasn't easy to borrow 120k to buy this farm, fast forward a few years we are still paying on that 120k note and the place across the road comes up for sale for 500k, bank had the approved mortgage within 24 hours because as my banker said "we know your good for it now".

At the time of the original struggled 120k mortgage we had 800+ credit scores, 1 good off farm job, no debt, and more than enough savings to purchase it outright.

So if they tell you they only lend to people with purple hair will you die your hair too? Oh, and by the way, they sell purple hair die.

They are messing with your mind. It's part of the sales pitch. Think about that logically, not off of what they tell you.

It's like when a car sales man walks in to another office to ask his manager if he can go that low. They didn't even talk about it but they got you to think you are reaching the bottom threshold.

If you have no debt, cash to pay the loan, and they won't lend to you, look at them and say, are we doing this or not, and if they won't, find a different bank.

 

[chevytaHOE5674]

I dont make their rules I just play-ish by them. Having a bunch of money in savings today doesn't mean diddly about if you will repay a loan. Having a few years of good repayment history shows that you have the money and are also willing to pay the man.

You guys are doing better than this poor farmer if you can make 500k land purchases in cash.

 

[Brute 23]

I dont make their rules I just play-ish by them. Having a bunch of money in savings today doesn't mean diddly about if you will repay a loan. Having a few years of good repayment history shows that you have the money and are also willing to pay the man.

You guys are doing better than this poor farmer if you can make 500k land purchases in cash.

I'm just putting it out there for consideration. Not all banks operate the way you are describing. Do with the info what you want. Just letting you know there are options.

If some one wants to borrow money.... do it... but don't do it based on false info or marketing schemes.

 

[chevytaHOE5674]

I'm sure they don't. But only 2 banks in town and I want local so I can look somebody in the eyes and shake their hand.

I'm continually trying to grow my operation so a good current relationship with my lender is a must imo.

 

[cowman82]

I dont make their rules I just play-ish by them. Having a bunch of money in savings today doesn't mean diddly about if you will repay a loan. Having a few years of good repayment history shows that you have the money and are also willing to pay the man.

You guys are doing better than this poor farmer if you can make 500k land purchases in cash.

my buddy is a big dairyman. he bought a tract a few years ago and forgot to go to the closing. They called, (*this guy is busy as can be) and he's like oh yea, ran over there in his bibs, took out his check book and said, how much do I owe you? They all looked at him really weird. He wrote them a check for almost 600k. love it.

 

[Lucky]

As soon as we paid off the majority of our debt in lump sums our credit scores started falling. We always had above 800 credit scores. Now one is around 700 and the other is above 800. The system is designed to keep you in debt or at least keep you thinking that debt is good. Truthfully as long as you can get by and pay the bills I don't see a problem with being in debt. It's not like being debt free makes money magically pile up in your bank account. It takes along time to save money and the entire time you are saving the price of everything is going up. We got two guys at work saving to pay cash to build a new house. Both would have been better off getting a loan with a very aggressive payment plan.

 

[chaded]

Credit score tells them how likely you are to pay your debt and on time and how likely you are to go into debt. Basically, a grade on how good of a slave are you because that is what the borrower is to the lender.

 

[cowman82]

my credit score is 630 is that pretty good?

 

[Brute 23]

Credit score tells them how likely you are to pay your debt and on time and how likely you are to go into debt. Basically, a grade on how good of a slave are you because that is what the borrower is to the lender.

It's like grades in school. It was not a reflection of how smart you are or successful you will be, it was a scale of how willing you were to do what the system told you to do.

Notice the correlation... you need good grades... you need a high credit score... you need x, y, z. Pretty easy transition to sell to the masses.

 

[cowman82]

It's like grades in school. It was not a reflection of how smart you are or successful you will be, it was a scale of how willing you were to do what the system told you to do.

Notice the correlation... you need good grades... you need a high credit score... you need x, y, z. Pretty easy transition to sell to the masses.

some people need the credit to get money. I didn't have rich family members to help me out or co-sign on loans so I had to hustle all bymself with the clothes on my back and a desire to succeed.

I wish I was handed a farm or .. anything for that matter.. maybe a 5 dollar bill even.

 

[Mrcopier]

my credit score is 630 is that pretty good?

Google it or duck duck go it

 

[kenny thomas]

If i have a credit score i have no idea what it is. Seems to be a big deal to many people so it must be important.
If i bought a small farm tonight for $100,000 i would send a text message to one of the bank board of directors and he would ask if i need more. Then say get it tied up and come by the bank one day. Still old fashion i guess.

 

[Lucky]

If i have a credit score i have no idea what it is. Seems to be a big deal to many people so it must be important.
If i bought a small farm tonight for $100,000 i would send a text message to one of the bank board of directors and he would ask if i need more. Then say get it tied up and come by the bank one day. Still old fashion i guess.

I dropped our Balance Sheet off at the bank today for our operating loan. I signed the application and will get a call to sign the paperwork next week. We might or might not use the money but it's nice to have it available and nice to deal with an old school bank that understands the cattle biz.

 

[wobbie1775]

I dropped our Balance Sheet off at the bank today for our operating loan. I signed the application and will get a call to sign the paperwork next week. We might or might not use the money but it's nice to have it available and nice to deal with an old school bank that understands the cattle biz.

I just did a loan for 80 acres. First time with a local bank. Similar to your description. I am so thankful for thier common sense approach.

 

[Twisted]

You can build a credit score with someone else's money. Have done it for years. I pay for everything I buy with a cash back credit card. Then pay the entire balance usually a couple of days before it is due doesn't cost me a dime. I bought a new muzzleloader last fall outright with the cash back that had accumulated on my Bass Pro card.

 

[kenny thomas]

You can build a credit score with someone else's money. Have done it for years. I pay for everything I buy with a cash back credit card. Then pay the entire balance usually a couple of days before it is due doesn't cost me a dime. I bought a new muzzleloader last fall outright with the cash back that had accumulated on my Bass Pro card.

Im still old fashioned, when i think of "cash back" its green folding money in my hand. Don't even have a credit card. What your doing makes sense but i have never tried.