Loan for large acreage land

[Nik Moushon]

I am in negotiations for a large, 264 acres, of timber land that I plan to divide up and sell 20 ac lots. Located in Washington state, near Wenatchee / Leavenworth area. I have called a total of 5 local banks/credit unions and none of them lend on large acres. Regardless of what it is used for. I'm still waiting to hear back from 3 others but I'm not holding my breath. Do any BP members know of anyone that would be even willing to consider loaning on this kind of property? I've got a basic pro forma that shows the numbers work great but so far no one is even willing to talk term and rates let a lone hard numbers.

[Jay Hinrichs]

@Steve Vaughan  

Hey Nik the other thing to do here is get the seller to carry..  and what would be common is let the seller reserve the timber deed until you have paid them off.. one of the big things in the north west was for unscrupulous people to buy land on contract slick off the timber then never make payments.. so most folks these days know they need to reserve timber rights until paid in full.. and you can get release clauses for the timber as well. you structure it anyway you guys agree.. 

although on the surface for that kind of acreage at that price there cant be to much Merch timber .. Logger would have long ago bought it.

and if you can get the seller to carry then negotiate partial releases for each lot that gets sold off..   but do check with your tax person you don't want to sell yourself into a tax bind.. since you will be a dealer.