Commercial/Farm for sale questions

2 Replies

Odd question... does anyone know of any alternative routes for getting funding for a commercial property? Property is an operating chicken farm (chickens net over $90k income/year) with an operating pet boarding Kennel (nets over $100k per year) along with over 80 acres of tillable land, a newly renovated 4 br/3 bath 2500 sq ft home, large (100x200) shed/building/garage and separate office building (12x24) for Kennel. Asking price is $1.1 mil. So down payment or equity would need to be $220k. Are there any creative ways to get this money through private lenders, etc for the down payment? Any suggestions would be greatly appreciated!

Are you looking for debt or equity? Have you raised chickens/eggs before? Any lender will want to see experience in these niche businesses. You're mixing the business and the real estate here...

This is a business, and sounds like several businesses.  SBA maybe?  Farm Credit is an organization that loans out on farms, but you would need that down payment.  I've had some good conversations with the Farm Credit reps, cant hurt to call them and ask their thoughts. 

If you dont have a lot of capital already and no experience in running a chicken farm (they are disgusting, ask me how I know) or dog kennel, its probably a very long shot. You need reliable labor, expensive machinery, a comfy reserve, and farming and farmland are probably one of the least profitable real estate investment strategies... at least from my sights. 

Also chicken farmers are basically indentured servants for the big poultry processors. I was in that industry for a while.  Margins are tiny and the big companies that buy your chickens (and sell you the feed) are just evil as hell.

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