My client owns a cattle feedlot in Kansas. It has a few hundred acres and an operating cattle feedlot. He uses it for his own cattle and also has numerous clients for the feedlot. The property has a recent appraisal of $2.4M and the client is seeking $1.2M.

This is a candidate for a hard money loan, with repayment over a 2-3 year period, 20 year amort and ideally interest only payments with balloon at the end of the term and with no prepayment penalty. This is NOT a candidate for a daily payment loan.

He has a $800k first mortgage on the property (owner financed). He wishes to pay off the first mortgage and take an additional $400k (for total of $1.2M) to purchase more cattle.

The hair on this deal is the client's credit. He is in the mid 500s due to a previous partner putting a double mortgage on some cattle, which put him behind. I believe that all his current payments are on time.

The plan is to get this hard money loan set up using the feedlot and income as collateral, then repair his credit over the next twelve months and secure a long term mortgage to take out the hard money loan.