I chose a line of credit to start up. Nothing down, no collateral other than cows. If things get bad, I'll sell out, and if that aint enough, set it up as a regular loan. As it is, as bad as writing the interest check is every year, it's going pretty good. Just try to plan as best you can, you are charged interest on what you have drawn, but the remainder of the LOC is there if you see something you can't live without. I think this type of deal works best with someone who leans toward being a little tight. I put all checks straight back onto the principal of the LOC. This LOC is for cattle, and operating expenses. Equipment purchases, when there is one, I'll call them and tell them how much it is and go in and sign a note that's separate.
I bought running age cows, average age 5.5 years old approx., off Dad when he got out. These cows were doing it, and have baby sitted me for the most part when I started. I would highly recommend trying to find some through a dispersal of an owner you know. The flubs I've had, mostly, were of bred hfrs I've bought. Some worked out, some are long gone. Took my lumps, try to remember the lesson, and kept moving forward.
