As a land broker, working with a private real estate lender can be an excellent way to provide your clients with additional financing options. If you work with a lender that is focused exclusively on farm and ranch lending, you can rest assured they have the expertise and experience necessary to provide your clients with financing solutions for their unique needs.
Here are some important points to consider when working with a private farm and ranch real estate lender:
Experience – The lender you work with should have a strong track record of success, with a team possessing decades of experience providing financing to farms and ranchers across the country. This experience should be coupled with a national lending platform that enables the lender to serve a variety of markets and regions.
Capital Partners – A strong lender will have a diverse group of debt capital partners, including insurance companies, private investors, and government-sponsored enterprises (GSEs). This diversity helps ensure the lender can offer a range of financing options that meet your clients’ specific needs.
Asset Management – A top-notch lender will provide full-service asset management, including origination, underwriting, closing, billing and collection servicing. This means they can take care of every aspect of the financing process, from the initial application to the final closing, ensuring a smooth and efficient process for your clients.
Range of Deal Sizes – A reputable lender should be able to provide financing for a wide range of deal sizes, from $1 million or less to $100 million. This flexibility ensures that your clients can access the financing they need, regardless the size of the operation or land purchase.
Streamlined Underwriting – When working with highly qualified clients, a streamlined scorecard-based loan product can be an excellent option. A lender offering premier loan products can quickly and efficiently underwrite loan applications, making it ideal for clients with strong credit profiles and credit operations.
Development Lending – If you clients are looking to make significant investments in their operations, development loan for permanent plantings and/or irrigation projects can be an excellent financing option. These loan enable your clients to make long-term investments in their operations, improving efficiency and profitability over time.
Referral Fees – Finally, working with a private ag real estate lender can provide you with an opportunity to earn referral fees. By referring your clients to a trusted lender, you can provide them with financing options not available by a traditional bank or lender while also earning commission on the loan.
Working with a private ag real estate lender can be an excellent way land brokers can provide clients with the financing solutions they need. With regional experience, a strong lending platform, and a range of financing options, these lenders can help clients grow their operations and look forward to what’s on their horizon.
Conterra Ag Capital is a private agricultural lender, focused solely on agriculture. Conterra regional loan officers work directly with clients and lending partners, taking the time to review operational needs and financial history before suggesting loan products that align with the financial needs of each producer. Conterra relationship managers are available to discuss opportunities available to land brokers and agents. Find your regional loan officer here.
Disclaimer: Please note that the information provided in this article is for educational and informational purposes only, and should not be construed as financial or investment advice. While we have made every effort to ensure the accuracy and reliability of the information presented, Conterra Ag Capital and its affiliates make no representation or warranty as to the completeness, correctness, timeliness, suitability, or validity of any information contained in this article. You should always consult a qualified financial advisor, tax professional, or other qualified professional for advice on your specific financial situation.