Buying Horse Property, Rural Home Loans, and Investment Property Financing
When it comes to the niche market of horse property financing, the complexity can often be overwhelming for potential investors. Ryan Bolton and his wife, Tiffany Lance, tackle these complexities head-on in the latest episode of their podcast. The couple brings a personal touch to the conversation, with Tiffany’s hands-on experience at Horse Haven Ranch offering invaluable insights into the world of equestrian property investment.
The podcast begins by unraveling the unique challenges of securing mortgages for sprawling ranches. The couple explains that the value of land often outweighs that of the house on horse properties, making it difficult to secure a loan where the home is not the main asset. This dynamic leads to higher down payment requirements, a hurdle that the Boltons themselves faced when acquiring their ranch in Southern Utah. Ryan’s expert knowledge in real estate finance shines through as he discusses how lenders evaluate the risk of foreclosure and how that impacts the availability of loans for large acreage properties.
Delving deeper into agricultural lending, the episode covers the USDA loan program, designed to assist with rural property financing. This federal program is vital for many looking to invest in horse properties, offering 100% financing to qualified applicants in eligible rural areas. However, the Boltons highlight the program’s capricious nature, with changing eligibility maps and strict income requirements. They also provide tips for utilizing USDA online tools to determine property eligibility, emphasizing that areas like Dameron Valley and Winchester Hills often qualify for such loans.
The conversation takes a turn towards the broader realities of real estate investment, shedding light on the higher stakes involved in fix-and-flips and rental properties. Ryan, leveraging his expertise from Patriot Home Mortgage, discusses the necessity of down payments, contingency planning, and inspections. The episode underscores the importance of being financially prepared for the unexpected expenses that can arise from property renovations and investment ventures.
The couple also discusses the role of private money lending in real estate investments, especially when it comes to high-risk properties that traditional lenders may avoid. Ryan shares his experiences in dealing with various financing options, stressing the need for investors to have ‘skin in the game’ to earn lender trust. The chapter on private money lending is a gold mine of information for those looking to enter the world of real estate investment but may not have the conventional qualifications.
Overall, the podcast episode serves as a guide for anyone looking to understand the financing and investment strategies surrounding horse properties. The Boltons’ firsthand experiences, coupled with Ryan’s industry knowledge, provide a unique perspective that can greatly benefit listeners. From USDA loans to the nuances of private money lending, the episode is a testament to the couple’s commitment to educating their audience on the multifaceted world of real estate finance.
