Financing a new barn?

[buckeyefarmer]

I don't want to come across as judgmental, but it seems to me that the OP has Mercedes tastes, but a Kia budget.

Steve

I missed him giving the size, $50k seems really high for 40 x 60 in barn material.

Not aware of any special programs to help.

 

[kenmac]

I don't want to come across as judgmental, but it seems to me that the OP has Mercedes tastes, but a Kia budget.

Steve

Hey now,, My wife drives a KIA.:thumbsup: They have some Kia's that cost as much as some of the Mercedes models

 

[rustyshakelford]

yep. every time you finance, you become a slave to the lender .I don't want to be someones slave

When you finance. You don't own it until it's paid for. You miss a payment, late payment,etc, they can come take it.
Many vehicles are taken daily from someone that had every intention of paying the loan back

I bought a new Z turn paid cash, just had my 40x80 poured in concrete, paid cash.
Sure ,I could have borrowed the money. I just don't like being a slave to the lender.

There is nothing wrong at all with running your books like that for sure. Me, I’m not afraid to take on a low interest note if it leaves my cash free. I have no problem setting up auto withdraw and the notes taken care of but if on a Sunday I come across something on CL that I can’t live without and need 15k right then and there id rather go to the hole in the ground, dig it up and buy it. I have ensured that if I get hurt, we will have zero issue. Actually if I get hurt either at home or work I’ll bring in a couple grand extra every month until I get healed over my normal income.

With as cheap as money is now I love leaving money in the bank or safe and making the note. Worst case, I can deposit some cash and pay things off but why? I guess this also matters if people can stay within their means or income.

To the OP, good luck bud. I hope you can find something that works for you and your needs

Brett

 

[JimRB]

I have Mercedes tastes and a Pinto budget. Sure I could go into debt to build a new outbuilding to put all the stuff that has been sitting in the yard for 20 years, but I just got the mortgage paid off a year ago. Not looking to get into debt again, but I did finance my new geothermal to replace the old geothermal which crapped out after only 20 years. Supposedly I make a lot (relative to others in my county) but it sure does not feel like a lot after paying for health insurance and taxes. I do have a paid off truck and car. Truck is a 2004 and the car is a 2003. Just 511,000 miles on the car and about 170,000 on the truck. Hoping the car is good for 800,000 miles. I really want to get some passive income properties which confilct with the desire for a 3,000 SF shed.

I built my barn in steps. Grading the lot was the first step (borrowed a tractor and box blade). Planting 32 6x6 poles was the second step (borrowed a post hole digger and tractor but missed my mark on most of the holes). Putting rafters, decking and roofing was the third step. Siding was the fourth step. Concrete and a septic tank was fifth. Or maybe electric, water line and phone line was fifth. Finished half bath was seventh, or maybe horse stalls was seventh. Anyhow I did things in stages as the money tree dropped dollars. Once the roof was on, everything else was gravey. I did most of the work. Concrete and septic tank was hired out. Buried electrical was bartered for labor to build a barn for the electrician. Conduit from the panel box I did myself. I bought the annotated electrical code book so I could do the electrical work in my house, along with tile, paint, floors, tile, carpentry. If you are skilled, doing lots of tasks yourself can save lots of money, but if you do not know you are not skilled you can make lots of mistakes, some can be expensive or fatal. I certainly made some annoying 20 years later mistakes on the barn.

 

[cold1313]

I missed him giving the size, $50k seems really high for 40 x 60 in barn material.

Not aware of any special programs to help.

I agree - 40x60 doesn't seem right in my head. I think it was the 60x80 with an attached 20x40 living area with an overhang porch around the living area. Not a pole barn, all materials, electrical, HVAC (living area), concrete, doors, lighting and completely finishing the "living area" to be like the house. Also included some concrete approach from the driveway to the barn.

Just finished gutting and remodeling the entire inside of the house. Paid cash, no work hired out.

 

[kenmac]

There is nothing wrong at all with running your books like that for sure. Me, I知 not afraid to take on a low interest note if it leaves my cash free. I have no problem setting up auto withdraw and the notes taken care of but if on a Sunday I come across something on CL that I can稚 live without and need 15k right then and there id rather go to the hole in the ground, dig it up and buy it. I have ensured that if I get hurt, we will have zero issue. Actually if I get hurt either at home or work I値l bring in a couple grand extra every month until I get healed over my normal income.

With as cheap as money is now I love leaving money in the bank or safe and making the note. Worst case, I can deposit some cash and pay things off but why? I guess this also matters if people can stay within their means or income.

To the OP, good luck bud. I hope you can find something that works for you and your needs

Brett

Not everyone has insurance to pay off their stuff or pay them if they are off work short ,or long term.
My BIL is a prime example.. He is slave to his lenders, and if he can't pay, whey will have no problem taking their stuff back

If I see something on CL, or on the side of the road I want, I do the same. Go out in the field and start digging up jars. Only problem now is, I'm starting to forget where I buried those jars

 

[rustyshakelford]

Not everyone has insurance to pay off their stuff or pay them if they are off work short ,or long term.
My BIL is a prime example.. He is slave to his lenders, and if he can't pay, whey will have no problem taking their stuff back

If I see something on CL, or on the side of the road I want, I do the same. Go out in the field and start digging up jars. Only problem now is, I'm starting to forget where I buried those jars

That痴 a heck of a problem to have!

As for your BIL, that痴 a bad deal. I expect to be injured and am excited every day it doesn稚 happen. Plan for the worst and hope for the best. I致e been off all week after having the ole snip snip done. As long as I can drive and unload my tractor I can always rustle up a little more money if things got rough. However, I wish I and waited more than 3 days to mow 23 acres. Got bored though

Brett

 

[lennyzx11]

I've been talking a lot to my son trying to get through to him what a "bad deal" is.
Americans can get money. Face it. Somebody will loan you money. Trouble is the paying back.
Most people today find out they can get money/loan easily and never stop to think what that payment cost them in terms of interest or the amount that comes out of their net income each month.
Using someone else's money is good as a tool.
But it really should be firmly grasped what the pay for versus the pay back is to determine if this is a good deal or not.
Waiting till I saved 50k for a building vs paying for it and enjoying the use of it while paying is one consideration.
Another. Making payments or paying all my cash might leave me "house poor".

 

[MossRoad]

I agree, but include the value of your home under your assets (assuming you own rather than rent).


Steve

YES! Definitely count your house in the own category, then how much you owe in the debt category.

 

[MossRoad]

yep, only problem I have is, I have no cc debt, no mortgage, no vehicle payment, no tractor payment.

If I had a loan, I would only have one at a time. Too many loans and something happens and you can't work, you better have the means of paying back what you borrowed .

When you have debt, you have risk. Too much risk isn't good. My wife's brother is finding this out the hard way. He financed everything (way over his head) His health has declined, and his employer put him on short disability. He claims he can't pay his bills on his disability check.

That's not a problem. Just put everything you own in the own column and if you have ZERO in the owe column, that's all the better. :thumbsup:

In my wife and my situations, we benefit from having a home equity loan. We get a bunch of money off on our property taxes, even though we usually have a zero balance. In most years we save about $800 on our property taxes and average about $300 in interest payments, for a savings of $500. Its about the only time I feel I "get one over" on the system. :laughing: