Loan amount
$3,366,000
Loan type
As-Is Property Value
$4,293,000
LTV
79%
{LTV}
Property type
Commercial / Poultry houses
Borrower Details
Credit score
581
Deal experience
2 deals
This loan scenario was submitted by a Broker
Property Details
State
West Virginia
Loan Details
Additional Loan Information
I own the largest poultry farm in WV with 12 42' X 400' houses and we closed our doors to Pilgrims in Nov 4 2016 for lack of funds to operate the farm. In Feb of 2017 we had the opportunity to grow organic chicken for Shenandoah Valley Organics (SVO) in Harrisonburg VA but the bank that holds our collateral did not want to give us the 850K revolving line of credit to grow for them; you have to purchase your own chicks and feed with this money and you zero the account when birds are sold. When the bank finally said they would be willing to do the LOC the spots with SVO had been filled. We just sat back and waited for SVO to contact us when spots opened up and when it did the bank drug their feet for two months and then said no. We wasted over one and a half years with the opportunity to grow but could not for lack of funding not to mention we were behind on the chicken farm mortgage now. We purchased the chicken farm in Jan of 2007, two months shy of 10 years.
We have spent all this time trying to find a business to utilize my chicken houses and we finally settled on hydroponic greenhouses. We want to remove the roof off of two houses and replace with twin wall poly carbonate to grow hydroponic lettuce to begin with and eventually cucumbers and tomatoes. We will use the computers, ventilation and heat already there but the expensive part is the LED grow lights to grow all year. Our houses will have 2 zones with 2 grow systems in each zone with 10,440 grow sites in each system.
We are looking for a 20 year loan at 6% interest for 3.360M which is 288,888 per year with a 6 month grace period to do upgrades and harvest the first crops. The money breaks down to 2.1M to pay off Freedom Bank in Belington WV which holds my collateral 280K to FSA for direct loan pay off and 986K for upgrades to the two houses. My collateral is the chicken farm and a grass farm in Seneca Rocks(appraisals attached) totaling 4.293M which is close to the 80/20 loan to value ratio. Also there is an opportunity to get a government guarantee on the loan at the local FSA office.
Our gross income is 1,016,600 per year at 1.15 per head on cash flow with 288,888 payments with 278,166 net income.
We have spent all this time trying to find a business to utilize my chicken houses and we finally settled on hydroponic greenhouses. We want to remove the roof off of two houses and replace with twin wall poly carbonate to grow hydroponic lettuce to begin with and eventually cucumbers and tomatoes. We will use the computers, ventilation and heat already there but the expensive part is the LED grow lights to grow all year. Our houses will have 2 zones with 2 grow systems in each zone with 10,440 grow sites in each system.
We are looking for a 20 year loan at 6% interest for 3.360M which is 288,888 per year with a 6 month grace period to do upgrades and harvest the first crops. The money breaks down to 2.1M to pay off Freedom Bank in Belington WV which holds my collateral 280K to FSA for direct loan pay off and 986K for upgrades to the two houses. My collateral is the chicken farm and a grass farm in Seneca Rocks(appraisals attached) totaling 4.293M which is close to the 80/20 loan to value ratio. Also there is an opportunity to get a government guarantee on the loan at the local FSA office.
Our gross income is 1,016,600 per year at 1.15 per head on cash flow with 288,888 payments with 278,166 net income.
Status
Closed
Created
January 30, 2020 - 12:27pm
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