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| That's why you run two balance sheets. 15% just is not ultra-conservative. Land values can change that much in one year.
Also, you could be losing money operating, but your balance sheet could be showing a profit because land prices are going up. Bankers should be concerned about cash flow and profitability more than asset values. Bankers loaning on asset values is a big part of what caused the 80's ag crisis.
Brandon | |
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Inflated Balance Sheets
