Farm/Retreat Soon - Then Tractor - Help

[sbakf]

mr sbakf: congrat on your new found freedom and . sounds like you're on a roll.....can't go wrong with anything you're considering...my only advice is also take some time to step back and look at the spending spree. you've earned your opportunity, and unless you've also struck a rich vein in your land, be careful not to blow precious resources for the lean times ahead....needs will present themselves along the way.....good luck! bb

Appreciate the sentiments - roll, yes - but would prefer an easy slide. I'm always stepping back and taking another look - drives my wife nuts. She's the impulse buyer (small things, thankfully), I obsess over over details and analyze (and analyze and analyze) - borderline ****, some say. But hey, it's my dream - I'll get there.

Biggest kink (so far) in this endeavor, has been the recent upheaval(s) in the financial markets. Panties are twisted so tight, lenders aren't lending. Bankers are keeping nothing in-house. If they can't box and sell it on the secondary market (i.e., in very short order), they won't touch it. No land loans, no loans for secondary buildings and improvements (e.g., barns, shops, fencing, ... etc.). Construction loans on a primary residence are fine, but for me, construction of a home on this 40 acres parcel was the last thing in my construction sequence. My initial plan of attack has been turned upside down. As a consequence, there will be extra costs and delays, but again - I'll get there. No interest (or low interest) financing for a tractor is a big help with cash flow - for sure.

 

[big bubba]

sounds like the right way to go about it....i took the hit myself a few times trading up till i got what I wanted in a tractor ....i'm sure you will be able to take advantage somehow and make an opportunity of these tough times. keep us posted....and enjoy your new life, i retired last year too (21 yrs in a jr high classroom) and have never looked back. have a good year and whatever machine you get, i'm sure it will sound good when you crank it up.....bb

 

[sbakf]

sounds like the right way to go about it....i took the hit myself a few times trading up till i got what I wanted in a tractor ....i'm sure you will be able to take advantage somehow and make an opportunity of these tough times. keep us posted....and enjoy your new life, i retired last year too (21 yrs in a jr high classroom) and have never looked back. have a good year and whatever machine you get, i'm sure it will sound good when you crank it up.....bb

You Betcha !

 

[bp fick]

Appreciate the sentiments - roll, yes - but would prefer an easy slide. I'm always stepping back and taking another look - drives my wife nuts. She's the impulse buyer (small things, thankfully), I obsess over over details and analyze (and analyze and analyze) - borderline ****, some say. But hey, it's my dream - I'll get there.

Biggest kink (so far) in this endeavor, has been the recent upheaval(s) in the financial markets. Panties are twisted so tight, lenders aren't lending. Bankers are keeping nothing in-house. If they can't box and sell it on the secondary market (i.e., in very short order), they won't touch it. No land loans, no loans for secondary buildings and improvements (e.g., barns, shops, fencing, ... etc.). Construction loans on a primary residence are fine, but for me, construction of a home on this 40 acres parcel was the last thing in my construction sequence. My initial plan of attack has been turned upside down. As a consequence, there will be extra costs and delays, but again - I'll get there. No interest (or low interest) financing for a tractor is a big help with cash flow - for sure.

Very much our experience last spring when buying our property. No one would touch it. It was a bank owned property. In the end, we just paid cash. There went the tractor money!! Zero financing came to the rescue. Not the way we had "planned" it either, but it worked out, of a sort.

 

[sbakf]

Very much our experience last spring when buying our property. No one would touch it. It was a bank owned property. In the end, we just paid cash. There went the tractor money!! Zero financing came to the rescue. Not the way we had "planned" it either, but it worked out, of a sort.

Yep! Had to pay cash for mine, as well. Multiple banks and brokers for 2 months - all they would offer were encumbrances to my current and paid off home. Now I own a home in the suburbs and 40 acres in the country with an old (but nice) farm house and small barn. I'm short on liquidity and need monies for surveys, perimeter clearing, fencing, a new barn/shop, tractor with implements, other out buildings, utility expansions (power & water), road construction, ... and what are the banks/brokers offering me - money to build a another house. I don't need another house right now.

Beaver Creek, MI - in the late 50's, I lived in Oscoda. My dad was career Air Force and we were stationed at Wurtsmith AFB for nearly 3 years. I still have very fond memories of my time there - so many stories from the banks of the Au Sable River and Van Etten Lake.

 

[JOHNTHOMAS]

Yep! Had to pay cash for mine, as well. Multiple banks and brokers for 2 months - all they would offer were encumbrances to my current and paid off home. Now I own a home in the suburbs and 40 acres in the country with an old (but nice) farm house and small barn. I'm short on liquidity and need monies for surveys, perimeter clearing, fencing, a new barn/shop, tractor with implements, other out buildings, utility expansions (power & water), road construction, ... and what are the banks/brokers offering me - money to build a another house. I don't need another house right now.

Beaver Creek, MI - in the late 50's, I lived in Oscoda. My dad was career Air Force and we were stationed at Wurtsmith AFB for nearly 3 years. I still have very fond memories of my time there - so many stories from the banks of the Au Sable River and Van Etten Lake.

You have people wanting to loan you money at probably around 5% that's deductable on your taxes (if you file long form). You don't want a mortgage on your house but you want someone to loan you money with a lien on what? Money owed is money owed, what's the problem with a lien on the house? That's about the best money anyone can get other than 0% and no one is going to do that unless it's for a repo item (car,tractor).

 

[sbakf]

You have people wanting to loan you money at probably around 5% that's deductable on your taxes (if you file long form). You don't want a mortgage on your house but you want someone to loan you money with a lien on what? Money owed is money owed, what's the problem with a lien on the house? That's about the best money anyone can get other than 0% and no one is going to do that unless it's for a repo item (car,tractor).

Everyone has their own way of doing things. We all do what's best for ourselves at the time. I wanted the (a) bank to supply 60% toward the initial land buy - for a property that was priced 30% below current market value. Within 6 months, and after improvements personally funded by me, bank funds would have amounted to less than 50% of invested value - not a bad risk for them. The leverage (lien) is the land with a older home, out buildings and substantial improvements by me. But, as said before, banks aren't adding such assets to their portfolios - they (want to) write a .1-.3 Ac residential mortgage and sell it for a small margin. They're working much like a car salesman on a commission - quantity not quality. I wanted one small mortgage and one closing on a land purchase. All future improvements to the land (e.g., new home, barn/shop and such) I could/would have funded myself.

Mortgage interest deductions are nice, but it still costs you. Forty percent off on $10,000 of interest still costs you $6,000. Add in the refinance closing costs and you're back up to near $10,000 in expense for the first year on a home refinance of 75% cash-out @ 5%. To pull out the remaining 25% of home value, there would be another closing and additional costs involved. Too much easy money for the banks - too much for me.

People my age must (should) consider those we might leave behind. Debt inherited is of little value. I sleep better knowing that my wife will not be financially burdened in any way if I should move on. We are still debt free.

 

[bp fick]

Well, I understand, really do, having gone through a somewhat similar deal. Well, but the good news is, no mortgage. We have tried to maintain a positive attitude. Since so much cash went into the purchase, stuff will just come a little slower, that's all. I think you know what I mean.

Would I have passed on this property? No way. Perhaps you feel the same way?

 

[sbakf]

Well, I understand, really do, having gone through a somewhat similar deal. Well, but the good news is, no mortgage. We have tried to maintain a positive attitude. Since so much cash went into the purchase, stuff will just come a little slower, that's all. I think you know what I mean.

Would I have passed on this property? No way. Perhaps you feel the same way?

We are a kindred spirit. To experience is to understand.

 

[Punk]

It seems to me you have it figured out. If you would have come on here claiming you was going to buy a 4240, everyone and their Mama would have told you to go bigger. If you like the 5740, I say go for it. The extra horse power won't hurt a thing.
I, also, once owned a K5 Blazer. Best dang truck I ever owned. Never once thought of how much gas it guzzeled. If the gauge said (E) I put some gas in it. Go with your gut. If you go with anything else it'll just make you sick wondering if you let someone talk you out of your dream.