Ranch Investor Wisdom

[Darton]

for me the best land purchase is one you can use for recreation while you own and improve it and then sell it for a profit - I have done it several times with success

You and I sir have the same recipe! Depends on your goals

[warrington]

Fences
Water well
Electricity are all big money savers

The one thing I would look for is A place that when you are there at the place you were going to put your tent, that you can see out over hundreds of acres. It Makes Your Place feel much bigger if you can see over a distance. 10,000 acres but only being able to see 1 acre makes it feel very small. 80 acres in being able to see 1000 acres makes your place feel very big.

[Texans42]

Windmills are an eyesore and they’re noisy. Darkness can’t even hide them because they have blinking red lights. And then you have power line easements. I’ve even heard some people claim the constant flickering of light causes them to become ill. Not sure I believe the last one, but some claim it so who knows.

I believe Texas A&M conducted an analysis of the negative impacts windmills have on real estate values. The impacts are real and if you don’t mind them, you can pick up a nice property at a significant discount.

There are certain places wind turbines and technically also windmills(water is of great value)do drive up land prices. I assure much of my land recently went up double in value soley to wind turbines

[Booner Sooner]

Ranch Investor Wisdom

Oh good lord. If you're gonna come to *Texas* Bowhunter and give advice about oil and gas and talk about ranches up north and without meaning North Texas, say where! I hear land is cheap and livin is easy in Saskatchewan.

A couple of points:
1. Looking around here, there are folks that “come to *Texas* Bowhunter” from all over the country. Darton’s public service post was full of excellent information with multiple references which were clear that some of his experience is in the great state of Oklahoma. That and his well established posts documenting multiple acquisitions, building dream properties seemed pretty plain to me.

2. I’ll take advice from someone that has and continues to live what he preaches! Take what you want and leave the rest. Believe what you want but the proof is in the pudding.

To the OP, great topic!

Carry on.

[gtsticker]

So not to hijack the land buying topic.if you want to make money would it be smarter to take the money and by multiple rent houses and then you would monthly and on the sale? I am asking because I bought a property that is increasing in value but because of limited funds iris a small place 50 acres. I could by 8 houses for what it is worth. Just wondering.


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[Darton]

So not to hijack the land buying topic.if you want to make money would it be smarter to take the money and by multiple rent houses and then you would monthly and on the sale? I am asking because I bought a property that is increasing in value but because of limited funds iris a small place 50 acres. I could by 8 houses for what it is worth. Just wondering.


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What is the end game?

[Texans42]

So not to hijack the land buying topic.if you want to make money would it be smarter to take the money and by multiple rent houses and then you would monthly and on the sale? I am asking because I bought a property that is increasing in value but because of limited funds iris a small place 50 acres. I could by 8 houses for what it is worth. Just wondering.


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Depends, right location 50 acres could stomp 8 houses. Biggest difference is income producing. If you have 8 rent houses and they are paying for themselves plus and appreciating, the rent houses win.

That’s why I stated earlier incoming vs recreational.

I inherited a small farm, in 20 years I have increased its acreage 10 fold. But I haven’t taken a dollar from the operations in 20 years, every single penny has gone back into expansion. It eventually started steam rolling. I have looked at my farm like some do a 401k, it’s a dividend paying investment. I’ve also been blessed not to every need or depend on its income. It was also a good tax shelter for windfalls on my career job.

[Darton]

So not to hijack the land buying topic.if you want to make money would it be smarter to take the money and by multiple rent houses and then you would monthly and on the sale? I am asking because I bought a property that is increasing in value but because of limited funds iris a small place 50 acres. I could by 8 houses for what it is worth. Just wondering.


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It again depends on your end game because I have done both! I can tell you however, that I have never had as much fun in one of my rent houses as I have my own land! I can say that the profit margin is larger if you do it right and can hang on for 3 or more years.

[gtsticker]

Ok that is good information. I don’t have a great ability to expand my place as nothing around it is or will be for sale for a while I am sure. I am in a good area for increased land value and for the rent house market. Land was purchased as an investment to make money I do not hunt on it just work on it .

[aking6341]

Most banks requiring at least 20% down? 30 year terms?

[Darton]

Most banks requiring at least 20% down? 30 year terms?

It all depends on how much you finance, but to answer your question 20% down and 30 year term is the norm for most lenders if you finance enough. I have found the thresh hold to be $250K for a 30 year term and 20/15 for less. Shop Shop Shop all of them are different. If you buy it right you can decrease the down payment. I have paid anywhere from 20% to 0% so contract price and appraisal are key!

[Balcones_Walker]

My opinion, which is worth what you paid for it, is not to buy a ranch as an investment. Buy it because you want to own a ranch. You'll probably make money when you go to sell it, but it will probably be less than you would have made if you'd put that money in a different investment.

[35remington]

A couple of points:
1. Looking around here, there are folks that “come to *Texas* Bowhunter” from all over the country. Darton’s public service post was full of excellent information with multiple references which were clear that some of his experience is in the great state of Oklahoma. That and his well established posts documenting multiple acquisitions, building dream properties seemed pretty plain to me.

2. I’ll take advice from someone that has and continues to live what he preaches! Take what you want and leave the rest. Believe what you want but the proof is in the pudding.

I do not disagree. @Darton, your dream land thread is awesome.

This does not make his advice about the accommodation doctrine correct as applied to Texas land owners.

[TradAg02]

It was also a good tax shelter for windfalls on my career job.

Can someone explain how this works? I currently have W2, K-1 and 1099 income and would love to find a way to reduce my taxes utilizing land.



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[TradAg02]

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