View Full Version : Investment acreage advice needed.
hghclsswhitetrsh
09-22-2013, 19:04
So when I was down in kansas I made a joking comment about buying some property from my brothers friend. Well he took it very serious and has made an offer for sale. He offered me a piece of the chunk that I wanted for 1/3 less of actual value. Taxes are dirt cheap. He's making money on it still and he likes us so that's why there's the discount. The property is prarie ground, not many trees primarily used for cattle. If I moved to kansas I wouldn't live on this property. That all being said, am I crazy to buy property just to have? Where would I start with the finance process of this deal?
hghclsswhitetrsh
09-22-2013, 19:14
Ps the down payment(20%) and monthly payments wouldn't hinder me financially.
Is this bugout land? If not, what is it for?
Can you get mineral rights?
Great-Kazoo
09-22-2013, 19:40
Taxes, is this dry land, utilities are how far from property line? Is this an impulse buy, could you do something more important with your money now?
hghclsswhitetrsh
09-22-2013, 19:45
Unsure on the mineral rights. I will check. Taxes are very cheap. I have watched this area trend upwards slowly and steadily the last 10 years.
hghclsswhitetrsh
09-22-2013, 19:46
Dry land. Utilities are located at the road that runs in front of the property.
Why do you want this property? Are you anticipating that it will be developed into a residential area in the future? You call it investment acreage. What is your exit strategy to get out of the property to obtain your returns. You should ALWAYS have an exit strategy. It doesn't matter how much the value of the property changes if you can't get rid of it.
hghclsswhitetrsh
09-22-2013, 20:23
Why do you want this property? Are you anticipating that it will be developed into a residential area in the future? You call it investment acreage. What is your exit strategy to get out of the property to obtain your returns. You should ALWAYS have an exit strategy. It doesn't matter how much the value of the property changes if you can't get rid of it.
No not going to be residential in my lifetime. I guess I just see it as a very good opportunity to buy some property that has immediate equity. 33%. Plus I can lease it for cattle use and make some money.
No matter what you do, always keep your exit strategy in mind, and if it is costing you more to own it than it is worth for you. We have land that we lease cattle on every summer/fall. I doubt it is even enough to pay the taxes. Also, while I can shoot and do whatever I like there, I don't get up there often and it is only 1.5 hours away. Consider stuff like that. Not trying to discourage you at all. Just have a plan is all.
If you can get mineral rights and there is oil or natural gas there, that changes everything.
Bailey Guns
09-22-2013, 20:42
I could be wrong but I don't think most banks (or other financial institutions) generally finance undeveloped land. And if it's as inexpensive as it sounds, I doubt there are any mineral rights included. But that's just speculation on my part.
hghclsswhitetrsh
09-22-2013, 20:47
I would also assume no mineral rights are included.
spqrzilla
09-22-2013, 20:57
You don't make money on undeveloped land.
You don't make money on undeveloped land.
Unless you lease it to an energy company, even if they don't get a well up. Otherwise, that is correct.
Bailey has a fair point, but creative financing is usually not much of a problem once you start looking into the issue. Will brother's friend be offering owner carry financing? Have you considered an exit strategy yet?
Buy it if you can afford it. They aren't making any more (or at least not much)
ChunkyMonkey
09-22-2013, 23:26
Its only an investment if you buy it cash since its an undeveloped acre. If there is a property on it w/ water and electric..go with USDA.. no downpayment. Otherwise, few banks will do 50% financing.
Great-Kazoo
09-23-2013, 00:07
No not going to be residential in my lifetime. I guess I just see it as a very good opportunity to buy some property that has immediate equity. 33%. Plus I can lease it for cattle use and make some money.
How much are other folks with the same size undeveloped land, seeing as a return on their land? If there's no development platted for that area, your buying it probably lessens the investment hit, someone else made.
hghclsswhitetrsh
09-23-2013, 07:59
He is making 35% in 10 years off of me. There is property of the same quality near by that is 33% more than what I'd be buying it for. He is doing this as an absolute favor. He is dividing up one large section to sell me a smaller section. The good ol boy network kinda stuff.
I've been interested in buying some land for a while. My goal would be to split it with a few friends and just have it for camping purposes. It'd be nice to be able to go up, build a quality fire pit, shooting area, etc. Just slowly over time make it how you want it. Plus, you'd never have to worry about finding a spot on those busy holidays.
Bailey Guns
09-23-2013, 10:15
Buy it if you can afford it. They aren't making any more (or at least not much)
Unfortunately, that doesn't make it an investment.
My mom bought a residential-size, waterfront lot on Table Rock lake near Branson, MO in the mid-60s. Price at the time was $2k, give or take, I think. She gave me the property in the early 80s after it was obvious the area wasn't really going to become what it was predicted to become (in terms of development, tourism, etc...). I've been to it once...it's just an overgrown, tick-infested chunk of land that costs me a modest amount in taxes every year (about $45). And with the way the water table varies due to the higher water usage with an increased population in the region, it's only occasionally a waterfront property now.
I've paid over $1300 in taxes on the place in 30 years. I can't even find a realtor who will accept the listing to sell it. It's not even worth what my mom paid for it. I haven't seen the place in probably 28 years. For all I know someone could've built a house on it.
Will that change? Maybe. But at this point I wouldn't consider it an investment. Hell...it's not even a good tax write off.
From the description it sounds to me like just a piece of pasture land? Can't build on it, can't hunt on it, can't fish on it, can't build a range on it, long ways away, only good for putting cows on? I don't think I'd mess with it, myself. Unless there's more to it than that.
I'd love to own some land, but it would have to be the right piece of land, something that I could get great use out of. The only way I'd want plain old flat prairie/pasture land is if there's a possibility of reselling it to a developer in the future.
JMHO.
BushMasterBoy
09-23-2013, 13:45
I'd buy something closer to home.
unless you can make the taxes and the monthly payments on it from leasing it out, skip it.
My mom bought a residential-size, waterfront lot on Table Rock lake near Branson, MO in the mid-60s. Price at the time was $2k, give or take, I think. She gave me the property in the early 80s after it was obvious the area wasn't really going to become what it was predicted to become (in terms of development, tourism, etc...). I've been to it once...it's just an overgrown, tick-infested chunk of land that costs me a modest amount in taxes every year (about $45). And with the way the water table varies due to the higher water usage with an increased population in the region, it's only occasionally a waterfront property now.
Check Google Maps (satellite view) to see what it looks like. Put an ad on the local Craigslist; it just might sell.
Unfortunately, that doesn't make it an investment.
My mom bought a residential-size, waterfront lot on Table Rock lake near Branson, MO in the mid-60s. Price at the time was $2k, give or take, I think. She gave me the property in the early 80s after it was obvious the area wasn't really going to become what it was predicted to become (in terms of development, tourism, etc...). I've been to it once...it's just an overgrown, tick-infested chunk of land that costs me a modest amount in taxes every year (about $45). And with the way the water table varies due to the higher water usage with an increased population in the region, it's only occasionally a waterfront property now.
I've paid over $1300 in taxes on the place in 30 years. I can't even find a realtor who will accept the listing to sell it. It's not even worth what my mom paid for it. I haven't seen the place in probably 28 years. For all I know someone could've built a house on it.
Will that change? Maybe. But at this point I wouldn't consider it an investment. Hell...it's not even a good tax write off.
Ill give you $$ for it. I get out to Branson on occasion.
Bailey Guns
09-24-2013, 07:40
Actually, I called a realtor after posting in this thread because I realized how long it's been since I've thought about it. And to be clear, it's near Branson, not in Branson. I just couldn't think of the little town...Shell Knob, MO.
Powered by vBulletin® Version 4.2.3 Copyright © 2025 vBulletin Solutions, Inc. All rights reserved.