Buying sugaring operation

[one more]

Hi there, was looking for some insight on purchasing a sugaring operation. The land is 63 acres, it has a complete operation, sugar house 3×10 evaporator Holding tank, feed tank, To, vacuum system and about 2500 taps with room to expand. It's soup to nuts.
My question is this, what kind of loan would be best? I don't believe I could get a conventional mortgage due to the fact that there is no septic, well or electricity? The loan amount would be for 150k and would be with a partner. The idea is that we would have our little slice of heaven, hunting camp/get away that would help pay for itself but doesn't have to produce year in and year out in order for the loan to be paid off. Is a small business loan a good idea, does anyone think a conventional mortgage loan possible? Any ideas on lenders out there that are friendly to this idea?
Any insight would be appreciated. Thanks in advance.

[Bricklayer]

If the owner of the land owns the property outright and owes nothing you could approach him/her with and owner held mortgage.
Basically the owner would be the bank technically and you would pay a down payment just like you would with a mortgage. Then you would have a monthly payment with interest just like a mortgage and set terms of interest rates say 5 years then renegotiate term and interest rate
You take over all costs associated with property and pay land taxes
When you do this you need to get everything done through a lawyer just like you would with a property purchase. And make sure your name gets put on the deed to the land. The original owners name will still be on it as an owner also because he essentially is the bank and technically owns the land until it's paid off.
Usually you need to make a pretty good down payment to sweeten the deal to convince the owner to do this but essentially the owner wins in this deal. Because he makes interest on something that basically costs him nothing. Little bit of risk for him but with a sugaring operation and if it's somewhat profitable it will or should cover some of the monthly payments. You could set it up that it's paid semi annually like 2 months after maple season and another payment around November or December. When you'd pretty much be out of stock on syrup anyways.

[maple flats]

That would be the best approach, most lenders do not lend on land without a home a potable water supply and a septic. Another is to be independently wealthy, but if you're like me that's ruled out.
You will likely need to go in a less conventional type of loan.

[mainebackswoodssyrup]

As others have said, owner financing is probably the best route. I don't think you will get too far with a conventional mortage. Another option is a small business loan. When we looked into it, we were surprised to see it is a relatively high interest rate, 8% or better with very good credit. Also need around 20% down. No matter what, take the time to make a business plan and run through the numbers.

[morningstarfarm]

Check with farm credit east...there is one in each state...not sure if they will...but they would be your best bet..might need a business plan though

[wiam]

Check with farm credit east...there is one in each state...not sure if they will...but they would be your best bet..might need a business plan though

And 25% down

[DrTimPerkins]

Another is to be independently wealthy, but if you're like me that's ruled out.

Ahhhh....but keep in mind my friend that you are independent, and wealth is not always best measured in how many $ you have.

[WESTVIRGINIAMAPLER]

Ahhhh....but keep in mind my friend that you are independent, and wealth is not always best measured in how many $ you have.

Yes Dr Tim, you hit the nail on the head. Too often we looked at the cup half empty instead of half full. Yes, would say most everyone on here is blessed and wealthier than 98% of the world's population. We just get to busy to set down and count all our blessings.

[Parker]

It would be a good idea to talk to buyers of the syrup you plan on making. The bulk market is very very oversupplied at the moment and with continued expansion in the industry moving product will be an issue. Also with a partener go to a lawyer and write up an agreement about what happens if /when the partenership ends.

[maple flats]

Yes Dr Tim, you hit the nail on the head. Too often we looked at the cup half empty instead of half full. Yes, would say most everyone on here is blessed and wealthier than 98% of the world's population. We just get to busy to set down and count all our blessings.
Very true, we are truly wealthy, BUT unfortunately that does not solve a traditional finance plan.

[southfork]

Parker gave some very good advice. Good luck One More, that too is how we utilize our recreational land.