I am currently 21 years old and am interested in purchasing a multi-family property. Based upon other successful investments, I currently own farmland values at roughly 300,000 dollars. Would it be realistic to borrow against the equity that I have in my current property to purchase a building valued at or around 1,000,000 ?
Investor · San Diego, CA · Member since 2019 · 326 posts · 266 votes
5y
It all depends on the deal, if the deal makes sense it would. Have to do the market research, due diligence, and numbers. It will also be dependent on your experience and if you can meet the financing requirements. You may have to partner up to meet certain requirements.
Lender · Logan, NM · Member since 2017 · 77 posts · 34 votes
5y
@Caleb Ballinger
If you refinance the land a bank is going to look at debt service for that loan. Can you service that debt today? If you can do that than you can pull cash out and have it ready for when you find an apartment. I would look at Farm Credit in your area for that loan. If not than you will need a bank that can do both types of loans and would be willing to make a loan against the farmland for the down payment. Apartment would have to be able to service debt on both loans. It is more risky for the bank doing that but if it a great deal you might be able to find one that is willing.