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| One thing about selling things, especially things one has to replace. If you sell anything taxes are due. Often more than what cash may be freed up.
If you have to buy anything back you have gained nothing and probably gone backwards.
Selling the land would help cash flow, but at the cost of building equity, unless the land market tanks. If the market tanks he is done any way.
I can see why he was not open to selling.
As far as making this loan. I remember Farm credit insisting I take on a farm there was no way I could make the payments on. Their stated plan was for me to buy it ( get it off their bad books) and they figured I would be forced to sell it in less than 3 years. I can see most lenders making this loan after that. | |
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Real World/Real life Financials Course 102
