[Greenbuilding] [BULK] Loans for land

[Lawrence Lile]

Typically, banks are skittish about loaning money on land without
structures.  They call this "undeveloped" land, even though an orchard
is definitely developed.  If you expect income on the orchard, they
might listen to that argument, however that throws you into a business
loan which is a higher interest rate.  

Often people borrow against an existing house to buy raw land.  

You can also approach the seller about an owner-financed loan. I've
unloaded raw land this was successfully. 
 
 
Lawrence Lile, P.E., LEED AP


-----Original Message-----
From: greenbuilding-bounces at listserv.repp.org
[mailto:greenbuilding-bounces at listserv.repp.org] On Behalf Of Nick
Sent: Thursday, January 11, 2007 8:06 AM
To: Greenbuilding at listserv.repp.org
Subject: [BULK] [Greenbuilding] Loans for land
Importance: Low

I am looking at buying a 4 acre orchard off an old farm in New Mexico
and 
was a bit shocked at the interest rate and small percentage of the value

that they will loan at the local banks.

Does anyone have any insight and perhaps better ways of borrowing money
for 
land that they can share

Thanks

Nick 


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