|
Amherst WI | That will work till they do an inspection and they find a tractor in there and they call the loan.
Lots of good comments. AT mentioned that 50% debt to asset ratio or better. I'll say this with the caviot that it makes a big difference what your equity is made up of too.
If you have lots of cash on hand or better yet fairly valued land land that's good equity. If you have a fleet of 3 year old or less machinery that's not good equity since it depreciates fast.
"If it were me", I'd want not more than 30% debt to my equity if I were to build it (this includes the new debt) I'd also want all my debt payments to not add up to over 8% of my gross. I also wouldn't want to put my house up for collateral.
If you can meet all of these it's probably ok. Farmers buy stuff when times are good, they pay for them when times aren't and you need to "bombproof" yourself for if things do go to heck you can survive it. | |
|
Finance question about assets
