Texas Rancher Finances Generational Land Purchase with Custom $11.2MM Loan

AgAmerica Helps Borrower Secure a $11.2MM Loan with a 30-Yr Fixed Rate to Begin the Family Legacy of His Texas Ranch.

Rural land purchases are a stable investment in economic uncertainty. The low-interest rate climate makes it an opportune time to lock in a fixed rate over the long term to minimize payments and increase cash flow. A strong financial structure in the beginning provides needed capital for operational expenses without worry while setting you up for steady returns and a bright financial future.

The Challenge

A Texas rancher was interested in obtaining finance for the purchase of more than 1,200 acres to begin the journey of creating a family ranch. He hoped to pass down the Texas ranch through generations and wanted to provide a stable financial foundation for them to grow the operation. The property was predominantly pastureland and the borrower planned to use the land for recreational purposes as well as a cow/calf operation.

The Solution

AgAmerica customized an $11.2MM loan product to finance the land purchase. The payments were fully amortized and stretched through a 30-year term. This enabled the borrower to maintain liquidity for operational expenses on his ranch without becoming overleveraged from high loan payments and created the sturdy foundation he was looking for.

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