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Love of the land
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<blockquote data-quote="Chuckie" data-source="post: 124700" data-attributes="member: 637"><p>If you have made improvements on your property since you purchased it, have it re-appraised again. At the beginning you bought the farm, paying $1000 (just an example) an acre, which comes to $1,300,000, and with the improvements, such as cleaning the land up, sheds etc... it is re-appraised at $1,820,000. You have been paying on the 1st loan on the property, and balance on that land has a remainder of $450,000. I would go to my loan person and tell them you want to borrow money to purchase more land and to pay the note on the land you already owned. After you pay the 1st loan off at $450,000, then that leaves you owing for what your sister wants for her land. Let him know what you are doing and figures on how you wil pay it off and the amount of money that will be earned from the farm. Put it on paper. Having a plan on paper always makes the banker more at ease.</p><p>According to what your sister has done to her place, the value has gone up. If she is asking $850 an acre, a balance on her 1300 acreas would be $1,105,000. You have paid off the 1st land at $450. Now the appraisal price is $1,820,000, and you borrow $1,500,000, so that leaves you a value of $320,000.</p><p>So here it is simplified:</p><p>$1,300,000.. Original cost of 1300 acres at $1000</p><p>$1,820,000.. new appraised value with improvements</p><p>$1,500,000... money you borrow to pay off $450,000 bal. due</p><p>$1,105,000... price your sister wants for her land @$850 acre</p><p>- $<u>450,000</u>....minus the balance on 1st loan of property</p><p>$655,000 balance after paying off 1st loan to apply to new one</p><p>$1,105,000 sister's land purchase price at $850 an acre</p><p>$450,000 is now the balance you owe for both properties 2600 acres. That is the same balance you owed on 1300 acres. But now you have doubled your acreage.</p><p>That is how I would do it. </p><p>Chuckie</p></blockquote><p></p>
[QUOTE="Chuckie, post: 124700, member: 637"] If you have made improvements on your property since you purchased it, have it re-appraised again. At the beginning you bought the farm, paying $1000 (just an example) an acre, which comes to $1,300,000, and with the improvements, such as cleaning the land up, sheds etc... it is re-appraised at $1,820,000. You have been paying on the 1st loan on the property, and balance on that land has a remainder of $450,000. I would go to my loan person and tell them you want to borrow money to purchase more land and to pay the note on the land you already owned. After you pay the 1st loan off at $450,000, then that leaves you owing for what your sister wants for her land. Let him know what you are doing and figures on how you wil pay it off and the amount of money that will be earned from the farm. Put it on paper. Having a plan on paper always makes the banker more at ease. According to what your sister has done to her place, the value has gone up. If she is asking $850 an acre, a balance on her 1300 acreas would be $1,105,000. You have paid off the 1st land at $450. Now the appraisal price is $1,820,000, and you borrow $1,500,000, so that leaves you a value of $320,000. So here it is simplified: $1,300,000.. Original cost of 1300 acres at $1000 $1,820,000.. new appraised value with improvements $1,500,000... money you borrow to pay off $450,000 bal. due $1,105,000... price your sister wants for her land @$850 acre - $[u]450,000[/u]....minus the balance on 1st loan of property $655,000 balance after paying off 1st loan to apply to new one $1,105,000 sister's land purchase price at $850 an acre $450,000 is now the balance you owe for both properties 2600 acres. That is the same balance you owed on 1300 acres. But now you have doubled your acreage. That is how I would do it. Chuckie [/QUOTE]
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