Second Generation Family Farm Leverages Their Existing Property to Finance a New and Lucrative Opportunity.
When it comes to land investments, opportunities can slip away as quickly as they emerge if financing isn’t secured in an adequate amount of time. As a central servicer, AgAmerica’s streamlined loan creation process allows us to provide capital when it’s needed to fund the expansion and operations of farms nationwide.
A family prestigious in the agriculture community was looking to further expand their farming operation with a large, 1,800-acre land purchase of California vineyards. After farming for two generations, the family had established themselves as a premier wine and almond producer. The opportunity to capitalize on a discounted price of valuable land was available and they set their sights on securing financing quickly before the offer passed them by.
AgAmerica was able to leverage their existing property as collateral and provide a 5-Yr ARM with a rate of 4.5 percent. Through this loan package, the borrower could purchase the desired property, further increasing production levels and profit margins for their operation. The borrower was also able to pledge additional land collateral and further reduce the amount of money that was needed upfront for the land purchase. The efficiency of the loan process and overall positive experience motivated the family to continue using AgAmerica for future financial needs, including the refinance of several existing properties shortly after.
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