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Buying land in your 20s

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Wt150

New Member
What advice would you give to a guy in their 20s wanting to buy land to hunt and manage? I live in SW Iowa and have always dreamed of managing my own land. Being married and having children has taken priority now over land. I know many of you were once in my position so I would like to hear of any tips or encouragement you’d be willing to share! Thanks.
 
Don't waste money on to many material things ( new cars fancy clothes smoking partying ect. ) for the price of new truck payments nowadays you can make payments on 25 to 40 acres!! Money well spent in the long run ! Buy assets that appreciate not depreciate!!!!

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Unless you got family money or a great paying job you are going to need to cutout the every day expenses that 'everyone' has. You got to be weeeiiirrrddd. TV subscriptions, new cars/toys, expensive vacations, eating out. etc. Pick up some side gigs. Drop your costs and you can save up money pretty quickly really. Dont just save, invest. Bought my first piece at 32. Looking back, i could have bought something sooner.
 
I bought land in my 20s.
Very few will listen to me but my advice is start a business and work for yourself as soon as you can. I started out roofing houses at 21 and have been my own boss ever since.
If I was 21 today I could easily do the same thing again. You just need to work hard , be true to your word, and be willing to do what the established guys don't want to do. Most people are too afraid of the unknown to ever take a chance.
 
Not to discourage anyone, but it is tough to buy land when you are young today. Lets' say you buy 40 acres for $230,000. You put 20% down which is $46,000 and then take a loan on the rest. That leaves $184,000 to finance (over 20 years). If you use 7% interest rate that is about $1,426 a month. Usually, you won't have much income on 40 acres especially for $230,000. It is doable for some, but not for most without a higher paying job. $46,000 is hard to come up with for most people. If I was going to do it, I would save up the downpayment, then start looking. If you are single that helps a lot too.
 
Find a good job and save money. I’d never be able to at 20-29 with how I started. Let me be clear- it’s not impossible but I started my job at $10/hr, which paying bills cut that pretty quick. Mind you- I work for a very good utility company but they just don’t pay (benefits are phenomenal). My job also does not allow me to have a second job (utility is great) but I can do some stuff on my own to make money- so I do.
Everything I had saved up to 18 went to my college fund to pay an out of state tuition for the program I had to take.
But today- woof- it would be super hard with how things have changed. Not impossible- but it’s very area dependent on money coming in versus real estate market too. My “north” company makes about half of what our company does in Truro for example- because of proximity to Des Moines. Bullshit but they won’t budge on paying us more up in the tundra of north Iowa
 
Love above!!!! The “live broke” is spot on. Cut all the garbage & “just do it”. Just buy a chunk you are like “I think I can figure this out”. Maybe it’s a touch of a stretch…. What that does…. Forces u to be a bit nervous and forces you to take $ out of paycheck or work extra to make payment. I did that at 21 & for like 2-3 years I kinda eaked by, then made a bit more $ & kept doing it. Here’s what would have happened if I DIDN’T get a forced payment into the land …. I woulda found other stuff to spend that $ on or I wouldn’t have taken on extra things to make payment. Period. I can’t quite explain it but anyone trying to get into the land game has to take a “risk” & live tight for a few years. Just do it and when that $ is due…. Maybe you scramble for year or 2. After that- gets way easier and the snowball grows as you understand the all sides of this.
IMO- sell it and make a big chunk down road a few years & keep going.
These few years of living super tight & taking a risk aren’t for everyone. To me it’s a no brainer but most people won’t do it.
Couple other tidbits… Look into every cost share thing with NRCS office too. & have a farm accountant get you every normal & legal deduction for farm as there’s a lot of things you can write off.
 
When saving up for the down payment, you have to be invested in equities to keep up with inflation. Open a brokerage account with Vanguard or Fidelity and auto invest every month into a growth mutual fund. I tried just using CDs and that was a big mistake I made that cost me 5+ years. Also, have a good relationship with a lender, get an idea on price points, what they are willing to lend you, and what payments you feel comfortable with. The speed at which deals get done today, you need to have all your ducks in a row well before a farm hits the market.
 
You don’t have to live broke. Be disciplined. With my first career job at 23 I took 10%, more if you can, but I took 10 of my gross income each month, 15% as I made more money. I put 5% in a 401k and 5% went into savings for a down payment.

After a few years I had enough to put 25% down on my first 80 ac. My 401k was through my job. Once the balance is large enough you can borrow against it. Even though many say don’t borrow against it, I did once for another acreage. The reason is the rules are you must pay it back. So, I paid myself back through a small wage garnishment each month. I don’t regret it.

I continued the 5% savings to make the yearly payment that was supplemented from crp and a little rental on the 80 ac. Try to buy land with income. Keep in mind I was a LEO public servant. It can be done!!

Start small and do it alone. Partnerships usually end with one party wanting bought out due to divorce, disagreement etc.
 
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All great info above and spot on. Above all else, you just have to want to do it more than anything else and be disciplined in saving your money to get there. Hear guys all the time that they are going to buy land but can't afford it. Those same guys drive nice trucks, wife has denali, they go on vacations and eat out all the time, nice boat, etc. That's all fine and fun stuff, but he can afford it. They just don't want it bad enough to cut out lifestyle spending to do it.
One more thing I would add, is don't be stuck on a certain acreage size to break into buying something. My first farm was 52acres and I was dead set on buying an 80 before that purchase. So glad I didn't wait that extra time saving for an 80 and bought when I did.
Good luck!
 
I bought a farm in Iowa, when I was pretty young. Lucas County (rough tillable/pasture farm —fixer upper)…However, I had young kids at the time & did not have time or even $$ to even hunt it ! I think it was 6 years before I even applied for a tag .

It got me into the farm buying business. I am so happy I made the decision to do that … good luck and try everything you can to make it work .
 
Seems like local private sales offer some of the best "deals" these days. Do you live in the area you hope to buy in? If so, as you live frugal and save, think about becoming embedded in the local community. Let work colleagues know you are looking if you live in the area you plan to buy in. You said you have kids, school activities with other local parents can be a source of intel. Would you consider attending church? Lots of networking potential there (don't do it just looking for land, that will fly a red flag). An older couple seeing a young couple with kids trying to get established might provide an opportunity. Just some random thoughts, FWIW.
 
I am in the same boat, 24 and I need land management and whitetail management in my life. Been saving like a maniac and doing side hustles like euro mounts and such. My method to try and get an edge is just pumping my brokerage account and it has been a game changer for me. Has anyone else used the stock market to bolster there savings rate? What other methods has anyone used to gain an edge for income to buy more ground?
 
Save money and work your way up in a business/job that makes ya a bunch of money. Spend wisely, save, and prioritize your goal.

For me - exceling at my day job made land ownership possible. There's a ton of opportunity in the business world today if a person has some drive, desire to work hard, is hungry to learn!

Also - find a side gig to continue the income stream outside of your day job. Something that fits into your schedule without bring a burden to your family time. For me, it was part time taxidermy. It's a burden for me during hunting season but I do it at night while my family is asleep. Unfortunately the heavy work load comes during a time when I'd rather be in the woods. But there's no deer left in western IA so it hasn't been too big of a burden. haha
 
Brett Morris said:
Don't settle for an 8-5 job. Find a career & one with endless upside potential. Bet on yourself & take risks. The tools for young/new business owners today are ENDLESS. Watch every single episode of Shark Tank. The American Dream is ALIVE & WELL!!
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and maybe I didn't make this quite as punctual as I should have. GET INTO SALES. If you've got grit, you're self motivated, hard working, have a good personality. Don't settle for a salary job. Bet on yourself and find a role where your income is based entirely on the value you bring to the company. I work for the 24th best company in America, we are hiring every day, reach out if you're interested!
 
Windlooker said:
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Start small and do it alone. Partnerships usually end with one party wanting bought out due to divorce, disagreement etc.
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Just a comment on the above. I agree. I can't think of a land partnership that stayed together over a stretch of time, perhaps I am forgetting one, or some, though. I CAN think of several that disintegrated over time, and usually not a long time. FWIW.
 
JBAGS said:
All great info above and spot on. Above all else, you just have to want to do it more than anything else and be disciplined in saving your money to get there. Hear guys all the time that they are going to buy land but can't afford it. Those same guys drive nice trucks, wife has denali, they go on vacations and eat out all the time, nice boat, etc. That's all fine and fun stuff, but he can afford it. They just don't want it bad enough to cut out lifestyle spending to do it.
One more thing I would add, is don't be stuck on a certain acreage size to break into buying something. My first farm was 52acres and I was dead set on buying an 80 before that purchase. So glad I didn't wait that extra time saving for an 80 and bought when I did.
Good luck!
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Another FWIW...I have had several people say things to me like, "It must be nice..." to have the land that I do. Well, it is nice, yes, and I am very grateful for it. BUT...it is also true that I DIDN'T own a new truck until I was 45 years old, we DIDN'T take expensive vacations, we bought a house well below what the realtors said we could afford and paid it off way "early". We ate out only occasionally in those early days and then at some bargain buffet type place, I DON'T drink or smoke, so no expenses there. We had a modestly priced family van, nothing close to the $80K PLUS vehicles that I see many young families driving, etc. My boat in those days cost me $3K, etc, etc, etc.

It is tougher now with higher land prices, yes, but it is still doable if that is REALLY what you, and by YOU, I mean your wife too, want. I could go on and on in a similar vein, but I think it is fair to say that early life choices, even sacrifices, lead to later life blessings and provisions. Most people have way too much "consumer" in them in their 20's, 30's and 40's IMO and that's fine if your priorities are those "things" during those years. BUT, if you REALLY want to break into land ownership...you need to take a different path than what most people do, again, IMO.

I am now nearing retirement and am very much looking forward to taking my grandsons, and sons, deer hunting at OUR farm tomorrow and at least for me...I feel like the choices/sacrifices of yesteryear were well worth it. I also feel very blessed to be planning on how to leave the land that I have to my family for their future enjoyment. I feel like I am happier with this situation than I would have been driving a new truck, etc, when I was 30, etc. But, to each their own.
 
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