MN, great point. I didn't take on partners and had to buy smaller but that's ok. Have a friend in a mess now because he did take on a partner, the partner hit rough personal times and wants paid his half whether he's bought out or they sell half. Problem is deciding what piece to place on the market. Glad I went it alone.
MO-APE
Member
My advice, stay within a two-hour drive. I love my place but the 3+hour drive is so very limiting. Two hours or less and you can usually make it out for a bow hunt after work in the early season
Also, interview the neighbors. You never know what you'll pick up in a 5 minute conversation. At a minimum you'll know if they are meth heads or starting a militia compound. In all seriousness, you can find out if they are hardcore hunters, etc. I was fortunate in that my neighbors didn't hunt and over time I've won their trust so now I have a couple hundred of extra acres to hunt.
Lastly, buy something with income and add a few thousand to your yearly budgets for improvements.
Also, interview the neighbors. You never know what you'll pick up in a 5 minute conversation. At a minimum you'll know if they are meth heads or starting a militia compound. In all seriousness, you can find out if they are hardcore hunters, etc. I was fortunate in that my neighbors didn't hunt and over time I've won their trust so now I have a couple hundred of extra acres to hunt.
Lastly, buy something with income and add a few thousand to your yearly budgets for improvements.
I bought my first farm when I was 22 by far the best money I ever spent. I was very lucky that I bought in the mid 1990s. I would watch the markets very carefully I think in the next 18 months there will be better deals than there are now. I would buy based on value more than any other criteria you make money on land when you buy not sell. Spend time looking at auctions to see what stuff is actually selling for and do research at the courthouse to see what the property's actually sell for .
GOARMY
New Member
By it by yourself or buy smaller.
You will know it when you see it.
My story is was looking for a farm as no one would let me hunt anywhere. I looked at 2 farms and could not close but learned from defeat. Being dejected I went and looked at another farm I had seen listed for like 6 months. As soon as I stepped foot there I knew it was for me. I saw a funny black dog or I thought did but it was a fallow deer. anyway I was there an hour saw 20 deer and could not find anything that turned me off. Compared to what I had seen it was a 8 on a scale of 1 to 10. I went to the real estate office and wrote a contract. I put 10k down and at the time my money was tied up for the most part. I had an ace in the hole.
Siting in my man cave was a 96 corvette grand sport and it was paid for. It had 5k miles and was primo. I called up Pro Team Corvettes in Ohio and we came to a price on the car and scheduled pick up for like 4 days later.
Rollback shows up to pick up car and I open the door to find that the door spring exploded and landed on the Hood!!! put a perfect spring shape in the clear coat. Well they said no problem easy fix and they took the car. I started hunting the farm as soon as the owner signed the contract, he did not hunt and he lived in Bermuda. First night I just setup and had a 1 year old 6 point walk under me and it would not have been any better if it was a booner.
Funny back story is my farm was somehow involved in the whole Iran/Contra mess and I cant even put into words what I was told went on there.
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You will know it when you see it.
My story is was looking for a farm as no one would let me hunt anywhere. I looked at 2 farms and could not close but learned from defeat. Being dejected I went and looked at another farm I had seen listed for like 6 months. As soon as I stepped foot there I knew it was for me. I saw a funny black dog or I thought did but it was a fallow deer. anyway I was there an hour saw 20 deer and could not find anything that turned me off. Compared to what I had seen it was a 8 on a scale of 1 to 10. I went to the real estate office and wrote a contract. I put 10k down and at the time my money was tied up for the most part. I had an ace in the hole.
Siting in my man cave was a 96 corvette grand sport and it was paid for. It had 5k miles and was primo. I called up Pro Team Corvettes in Ohio and we came to a price on the car and scheduled pick up for like 4 days later.
Rollback shows up to pick up car and I open the door to find that the door spring exploded and landed on the Hood!!! put a perfect spring shape in the clear coat. Well they said no problem easy fix and they took the car. I started hunting the farm as soon as the owner signed the contract, he did not hunt and he lived in Bermuda. First night I just setup and had a 1 year old 6 point walk under me and it would not have been any better if it was a booner.
Funny back story is my farm was somehow involved in the whole Iran/Contra mess and I cant even put into words what I was told went on there.
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Thinkin Rut
PMA Member
I will go against everyone here and say you're not ready yet. Keep on doing what you are doing and enjoy the financial security for awhile. Many things will shake out in the next few years and the future will become more clear. Land prices are not going to run away from you here and you may even catch a break. Good luck in what ever decision you make.
Truth&Honest
Member
Financially, I suggest saving for 24-36 months. Put this money in a down payment account separate from your regular living expense. How much can you save? Are you really comfortable living this way? Family is more important than deer.
Location, location, location (neighbors X 3): it's tough to understand any area you are not familiar with until you have already purchased. People usually sell for two reasons- to make money, or leave a bad neighborhood. There is obvious indicators, but lots of people are 'nice guys' to your face, just don't expect them to share your same views about hunting. I would also avoid areas that already have hunters on every 20-80 acres.... with our liberal seasons and tags, there is way too much pressure on the deer. Hold out for the 'perfect' spot near large conservation minded landowners, even if it costs a little more.
Location, location, location (neighbors X 3): it's tough to understand any area you are not familiar with until you have already purchased. People usually sell for two reasons- to make money, or leave a bad neighborhood. There is obvious indicators, but lots of people are 'nice guys' to your face, just don't expect them to share your same views about hunting. I would also avoid areas that already have hunters on every 20-80 acres.... with our liberal seasons and tags, there is way too much pressure on the deer. Hold out for the 'perfect' spot near large conservation minded landowners, even if it costs a little more.
Deer&Ducks
PMA Member
When we bought in Nov of 2012 we were able to claim the Homestead exemption. Don't know if it's still available but it was at that point.
loneranger
Well-Known Member
So true,,about neighborhood. I did not do research on where my land was located. Next county down, taxes are way cheaper. Wish I'd known. A lot of small parcels around me and a lot of hunting.Also,,when I bought, one next door neighbor was a nice guy. Trophy Buck, land managing, type. wouldn't ya know. After I moved in he sold to a quad Racer. His kid tore up his place, and made a racket the whole summer, so,,,you never know who you might get for neighbors.
Full Draw
One nation under God
QDM, you're on the right track already by asking these questions. I think the real answer depends on your goals. I own a farm, I own rental properties and I own stock market related investments. I sell real estate for a living, so I most definitely believe in owning it. Those who "lost" money in their 401k's during the big decline have gained that back by now. The stock market is risky, but over the long haul, it will likely provide you a good return. Rental properties will definitely give you a better dollar return than a farm, but nothing will likely bring you more pleasure than a farm.
There is nothing I love to do more than hunt big, old mature bucks...5 years or older. It's a really tough addiction to have because you need a huge piece, or one next to a large piece that is not hunted. My wife and I also want to pay for our children's college education. So there is a balance to be found. I would love to do nothing but buy farms, but that isn't going to provide an education for my kids.
I would not agree with some of the statements that there is no better investment than land, IF you're looking for a $ return. Yes, it will appreciate over the long-term. Yes, it is fairly safe. And yes, it provides recreational pleasure with family and friends...a very valuable and worthwhile "return" on your investment. And yes, it will appreciate over the long term. But again, it depends on your goals. For guys who say they are going to use their farms as "retirement,"they can only do so IF they sell them (unless there is consideration income producing acreage). I don't ever want to sell my farm(s). I want to buy more. My idea of retirement is enjoying the farm(s) I worked to buy.
Buying our farm is most definitely one of the best decisions we ever made, as we live on it. But Truth and Honest is right, it's not worth it if you can't afford it without making unreasonable sacrifices. It sounds like you have the discipline to make sacrifices in areas that won't create a huge amount of additional stress in your life. If you can, go for it! If not, I don't see recreational land prices increasing very much over the next few years, so waiting a bit is likely not going to hinder your ability to buy.
Lastly, here's the worst "problem" with buying land...no matter how much we have, we always want more!
There is nothing I love to do more than hunt big, old mature bucks...5 years or older. It's a really tough addiction to have because you need a huge piece, or one next to a large piece that is not hunted. My wife and I also want to pay for our children's college education. So there is a balance to be found. I would love to do nothing but buy farms, but that isn't going to provide an education for my kids.
I would not agree with some of the statements that there is no better investment than land, IF you're looking for a $ return. Yes, it will appreciate over the long-term. Yes, it is fairly safe. And yes, it provides recreational pleasure with family and friends...a very valuable and worthwhile "return" on your investment. And yes, it will appreciate over the long term. But again, it depends on your goals. For guys who say they are going to use their farms as "retirement,"they can only do so IF they sell them (unless there is consideration income producing acreage). I don't ever want to sell my farm(s). I want to buy more. My idea of retirement is enjoying the farm(s) I worked to buy.
Buying our farm is most definitely one of the best decisions we ever made, as we live on it. But Truth and Honest is right, it's not worth it if you can't afford it without making unreasonable sacrifices. It sounds like you have the discipline to make sacrifices in areas that won't create a huge amount of additional stress in your life. If you can, go for it! If not, I don't see recreational land prices increasing very much over the next few years, so waiting a bit is likely not going to hinder your ability to buy.
Lastly, here's the worst "problem" with buying land...no matter how much we have, we always want more!
JNRBRONC
Well-Known Member
I hope to retire to my farm, with it generating income on top of my $1M 401K investment.
Establish a trust/LLC on the farm to pass it on to my boys without facing capitol gains.
The farm is "just" another asset in a diversified portfolio.
BOWDUDE
New Member
QDM,
This was a very stressfull decision when I made it, I was very lucky since it was right before land prices exploded.
I decided to go in with my dad and a good friend, my wife and I had just bought our first house for $55,000 we had a new baby and my wife thought I was completely of my rocker. I think I was making $13 bucks an hour then.
I made payments for 10yrs. If I was to do it again I would of got a lawyer and set up a TIC agreement once we got the property.
As you see I just listed our place for sale on this site, the third owner wants out, I could bight the bullet and buy him out but for me, my dad maintains the property he is getting older and in all fairness to my dad I am looking for something closer to home.
The big issue I am not going to find a place closer to Polk County with hunting anything close to SE Iowa, but for me it is way more about the hunting. The time I have spent with my dad and kids has been priceless.
I looked for 1 yr driving the southern part of the state every weeekend til I found what I wanted, so take your time and find what you want.
I think it is a great investment even with prices pretty high.
Bowdude
This was a very stressfull decision when I made it, I was very lucky since it was right before land prices exploded.
I decided to go in with my dad and a good friend, my wife and I had just bought our first house for $55,000 we had a new baby and my wife thought I was completely of my rocker. I think I was making $13 bucks an hour then.
I made payments for 10yrs. If I was to do it again I would of got a lawyer and set up a TIC agreement once we got the property.
As you see I just listed our place for sale on this site, the third owner wants out, I could bight the bullet and buy him out but for me, my dad maintains the property he is getting older and in all fairness to my dad I am looking for something closer to home.
The big issue I am not going to find a place closer to Polk County with hunting anything close to SE Iowa, but for me it is way more about the hunting. The time I have spent with my dad and kids has been priceless.
I looked for 1 yr driving the southern part of the state every weeekend til I found what I wanted, so take your time and find what you want.
I think it is a great investment even with prices pretty high.
Bowdude
supserdave
PMA Member
He who dies with the most debt wins! lol
In all honesty, I'd say go for it. I don't have much (23 acres), but I've only had it for 1.5 years and its definitely the best decision I've ever made.
Good luck, you can make it happen.
In all honesty, I'd say go for it. I don't have much (23 acres), but I've only had it for 1.5 years and its definitely the best decision I've ever made.
Good luck, you can make it happen.
southcentral
Member
My best advice is buy as much as u can afford but don't be married to it. If u can make money on it 1031 it into a bigger and better piece. I've done really well on land investment. Of course there is risk but if u buy with some income producing ground it helps situation. Good luck
ironwood
Active Member
Still there for now.
I've done stocks and mutual funds. Still do and have A 401k and ira. I could care less about either of them. I have no confidence in either and I've owned stocks since I was 14 (buying $1200 worth) and now I'm 35. Absolutely the long term claims some good returns but I have no passion about those investments and have seen them crumble 3 times now. They come back ok but sure nothing to get too excited about. Even if there was a 30% increased certain yrs- I still doubt them & personally they r just not for me even though ill keep doing them for diversity. Maybe 20 bigger purchases of stocks over 20 yrs- maybe 2 or 3 went really well. Have multiple farms and not one exception for them doing well in a variety of categories. Happiness and passion being a large component. Love them all- simply want them all close together now and bigger.
I'd say spend ur $ on what u have a passion for: u love stocks- go for it. (I don't). U love rentals and fixing things- go for it. I have a love and passion for land and that absolutely will transfer into $ increases as I give much passion, time, $, work and energy to them and they get better every yr because of that. No doubt I could keep farms through out retirement and live on crop, Crp and timber income alone.
The selfish side of me- hope less people want land. Hope prices come down- honestly do. Ill buy more. Absolutely love it but land is not for everyone. Actually- it's a horrible investment, all headaches, setting u up for bankruptcy & no one likes it. Ha ha.
I'd say spend ur $ on what u have a passion for: u love stocks- go for it. (I don't). U love rentals and fixing things- go for it. I have a love and passion for land and that absolutely will transfer into $ increases as I give much passion, time, $, work and energy to them and they get better every yr because of that. No doubt I could keep farms through out retirement and live on crop, Crp and timber income alone.
The selfish side of me- hope less people want land
. Hope prices come down- honestly do. Ill buy more. Absolutely love it but land is not for everyone. Actually- it's a horrible investment, all headaches, setting u up for bankruptcy & no one likes it. Ha ha.
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Hardwood11
It is going to be a good fall!
I started with 80 acres for $24,000 in MN... Been selling and buying up for several years.
Land---No doubt the best investment ever!!
Personally, I like cash flowing tillable/CRP farms...with a nice mix of habitat
Land---No doubt the best investment ever!!
Personally, I like cash flowing tillable/CRP farms...with a nice mix of habitat
In all fairness & being truthful.... Farming stuff has its major share of headaches. I do have to really watch it cause I really can blow a gasket when stuff breaks all day. The only area of my life that really challenges my temper. Blown tires, broken implements, bearings, cheap parts, you name it - there are constant headaches. then, add worrying about weather to it - GRRRRR. At the same time, driving around in sunshine, realizing you're not in a cubicle, no one's watching over your shoulder, looking at wildlife and nature all day, complete freedom - with all the ups & downs of any scenario, I simply know what "I PREFER" and I can't say what someone else would or should do in all reality. Do what you have passion for and realize there's headaches and ups & downs to ANY scenario.
