Financing a new barn?

[smstonypoint]

It is shocking how barn prices have changed.
I had Morton erect a 36 x 48 building (no insulation) 33 years ago.
Building is on the Cape, not so far from Sutton, Ma.
The Morton cost then was just under $10,000 ($5.80/sq.ft.)
Your Morton price now.... $60,000 ($25/sq.ft.)
....and I thought inflation was under control.
That said: Morton was a SUPERB company to deal with, and my Morton steel building (1/2 mile from salt water) is still in excellent condition.

That works out to an annual average increase of 4.53% in building costs. The CPI increased at at annual average rate of 2.63% over the last 33 years.

Steve

 

[coralhead]

I had $13K in materials on my 30 x 48 barn. Gravel floors but I built it myself. That was in Southern IN 2 years ago. $50K seems quite high for OH.

 

[two_bit_score]

Thanks for the recommendation! I looked at their website, not far from me and appear to be like my local Ag Credit but larger.

Have you thought about putting up a few CD’s to secure a note?

Or investing the cash with the specific purpose of making enough profit money to pay the 50 grand up front?


.

 

[Dadnatron]

Check out Morton buildings 'Lease to own' program. It might fit your bill. Nothing down, lease for 10 years with 10% residual at the end.

I don't know whether it specs out in all costs over time, but it might get you into something you want and can afford in a manageable way.

Our Financing |
Morton Buildings

 

[fried1765]

Check out Morton buildings 'Lease to own' program. It might fit your bill. Nothing down, lease for 10 years with 10% residual at the end.

I don't know whether it specs out in all costs over time, but it might get you into something you want and can afford in a manageable way.

Our Financing |
Morton Buildings

Interesting!
If you default on the lease, I wonder what they do to recover their costs.
Do they take your entire acreage?
Partial? Survey required?
What about right of way access to the structure if you default?
Seems as though default could get very tricky.

 

[geteh]

I just noticed that there isn't a storage or barn section to TBN. I posted under rural living because I am hoping to catch the attention and knowledge of the farmers out there.

I am in need (aren't we all) of an additional barn. I've owned the current home and small pole barn for 4 years, so equity is low and I have a extremely low interest rate from back then.

Plenty of banks are willing to let me refinance - no thanks. Local Ag Credit was ready to help me out with some good (farm related) finance options but I lease my fields, not personally farm them - so the programs didn't apply.

So I'm looking to see if there are other programs out there (small town bank, not sure the gentleman is aware of all possible programs). OR if there are programs where I can plant / raise, etc a specialty item and qualify for financing assistance, etc. I know there are programs to bring back wildlife, CRP, etc.

I doubt I'll find anything but I thought it would be worth asking on here. I only have a few acres to farm, so on paper, the "farm" doesn't bring in much revenue, but paying for it myself Review of a loan provider called Harmoney, I just need something to tide me over for 5-10 years I think. I plan to build it myself - so it's really just materials.

Hey,
So I've been doing a bit of research and apparently, just buying land is much harder than buying a house. Most lenders won't do a land loan and when they do, it's at a much higher interest rate on a much shorter term.
That being said, does anyone know of any good resources to look for land thats either available to owner finance, rent or lease? I'm looking in eastern PA and it's something I'm going to use for youtube videos that may get a bit demolitionranch-ish, as well as camping and hunting. Google has been of little help so far.

 

[two_bit_score]

Hey,
So I've been doing a bit of research and apparently, just buying land is much harder than buying a house. Most lenders won't do a land loan and when they do, it's at a much higher interest rate on a much shorter term.
That being said, does anyone know of any good resources to look for land thats either available to owner finance, rent or lease? I'm looking in eastern PA and it's something I'm going to use for youtube videos that may get a bit demolitionranch-ish, as well as camping and hunting. Google has been of little help so far.

Try a Land Bank like Texas Farm Credit | Land, Real Estate, Agriculture and Farm Loans in your area.

 

[duffer]

I've read thru all 7 pages here, and a couple of things that I don't think have been addressed:

• Do you have any stocks/bonds/CD's etc that you can sell to fund all or part of the barn? And if you do, only you can decide if it's worth it to do so. (Non-IRA/401k of course)
• Have you investigated getting your materials from a real lumber yard, not a big box store? I saved 20% over a big box store, for a better quality of lumber by going to a real lumber yard.
• Since you'll be doing the work yourself....and you can only do so much in a week/month, can you build it under a "pay as you go" philosophy, rather than buying all $50k up front? I've built 7 of my own houses, and the lumber yards will set you up with a "builder acct" and you get a bill each month. That's how I paid for my homes.

Just brain storming. Not sure if that helps at all. Hope it does.

 

[Sigarms]

Hey,
So I've been doing a bit of research and apparently, just buying land is much harder than buying a house.

I found that out in 2004 when we bought our place.

We went the route that two bit score suggested.

We do understand that this is a zombie thread?

 

[deezler]

Its a zombie thread, but still pretty topical (minus any raw barn costs being discussed as "recent" or "current").

Regarding the way to finance a pole barn, I went with a home-equity loan myself. Even though my equity had only risen from about 20 to 22% in the first couple years of owning our new home, getting a new appraisal that INCLUDED the value of the pole barn was enough to make it workable. So everyone should keep that in mind - you can get a new appraisal, and you can sweet talk them a bit, describe your full final plans for the building (electrical, plumbing, insulation) even if the current financing is only to cover the erection and maybe a slab. It's a numbers game.

For land- if you live in Michigan or Wisconsin, we are truly lucky to have Greenstone Farm Credit. They have the market cornered on Vacant-land and farm acreage loans, by offering competitive interest rates and a lot of financing/closing cost benefits. Plus equipment loans too.