Investment acreage advice needed.

[hghclsswhitetrsh]

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]

Ps the down payment(20%) and monthly payments wouldn't hinder me financially.

[Irving]

Is this bugout land? If not, what is it for?

Can you get mineral rights?

[Great-Kazoo]

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]

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]

Dry land. Utilities are located at the road that runs in front of the property.

[Irving]

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]

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.

[Irving]

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]

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.