| Reality speaks - 5/1/2023 11:46
I've seen way too much over 80% loan to value financing to outfits that have no working captial and can only show positive repayment based upon the last three years of extraordinary returns. I've seen it from the Farm Credit institutions and banks etc. All of its rationalized away because the Fed is going to reverse course this summer/fall. No amount of discussion can convince the young that the Fed may not reverse. In your opinion, Reality, which I respect, where should todays cap rate be at? Have appraisers adjusted these lately? Is there any reason why they shouldn’t be at closer to the 20 year fixed rate? Do the math on a 6% cap rate and $300 acre rent and that’ll sober a guy up right quick.
Edited by Boone & Crockett 5/1/2023 12:07
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Land value's what causes them to change
