Posted 11/14/2012 00:14 (#2696138 - in reply to #2695497) Subject: Re: Asking about tough farm economy times
Panhandle of Ne.
Denny, I've heard the same thing around here. As I said earlier, land "here" has increased in value by 600% in the last 14 years. Now, anybody wanting to buy this over inflated land, has to have 50% down, then, the bank might loan the rest.
Brings to mind a fellow I knew back in the late 70's. He and a friend owned a used car lot and they would "tote the note". I asked him how they could afford to do that as I knew he was not flush with cash. He said easy, they require 50% down and that is normally real close to their acutal cost of the car. If the folks missed a payment, they would go repo it and start the process all over again with some other sucker. Makes me wonder if the banks financing ag. land and wanting half down are actually thinking that is all it is worth? IDK