vacant/raw/recreational land financing

[Andrew D.]

Hi BP community,

This is my first post on here, but I've already gotten a lot of great advice from these forums and catching up on (and enjoying!) the podcast.

I'm currently in the process of putting together an offer for a vacant land purchase in NY state for ~150 acres of unimproved wooded land (with rivers, streams, and decent trails cut). The primary use will be for recreactional purposes (hunting, fishing, camping, kayaking, etc), and we may decide to eventually build some basic cabin structures in the future.

I know that getting traditional banks to finance raw land deals is often challenging, and most banks won't even consider the option. However, I've been working with a lender that specializes in this and have pre-approved a loan for our purchase. Before I move forward with their loan, I wanted to see if anyone on here had advice on the following questions:

1) Is a 5.25% variable rate on a 20 year term reasonable/competitive in your opinion given the financing challenges for this type of land being vacant/raw? Note: I have yet to ask the lender for additional options on a 15 or 30 year term and/or a fixed rate.

Thanks in advance for your thoughts and advice! I hope I'll be able to contribute my own advice to this forum soon.

Best,

Andrew