Saving to purchase land

[Razrbk89]

Land isn’t ever going to go down, the market may go soft at times but it will never be the price of 5, 10, or 15 years ago. They stopped making it a long time a go.

That’s probably true in a densely populated and rapidly growing state like Texas. People are paying 5+k an acre down there for stuff you couldn’t stock a cow every 10 acres on. Driven by huge population and lots of $. It’s a unique market for sure.

[wingnut]

Great question OP & lots of good advice already. Just a little back ground I own 7 different tracks of land I'm 41 years old. I started buying land when I was 26 years old. From then to now the first tract has went up $2,400 an acre. There is no way I could have saved up enough money to buy it. You're never going to be able to pay cash for it unless u inherited the money or win the lottery. You might think u can on paper but there is something called life that is going to get in your way every time. You need to remember that just because u buy a piece of property doesn't mean u have to keep it forever. U need to buy something to get your feet wet then move on to another piece of property when the time is right. Another thing is don't be scared to buy a piece of land as long as you buy it right you are going to make money off it. Don't be scared to look at other states as well. I own land in Oklahoma and Texas and right now Oklahoma is a sleeper state to be buying land at. Also another trick to buying land is to NOT put the land on monthly payments. I like mine to be on biannual or annual payments. That way I can make monthly payments if I choose or just make one big payment. Depending on your job that might make it easier on you. If you know you r getting quarter bonuses that helps. A lot of folks don't know that. Another thing is buying land comes with sacrifices I think all the time man I sure would like a brand new f250 4x4 4dr diesel. But after I do the math that is almost the same payment that my Oklahoma 160 cost. So I might as well keep driving my 2007 paid for truck and keep buying land. Sorry I'm getting long winded but interest rates are still low right now. Dont wait to buy the land in 20 years buy it now and make sacrifices and enjoy it now!!

[mjhaverkamp]

I bought my first ranch when I was 27, it was an owner finance, I bought two other properties a few years later, they were owner finance as well. It was about the only way I could have acquired land, worked out well.

[Acameron52]

Man y’all have got my wheels turning. I’m in the same kind of situation as the OP, 24 with a pretty good job making decent money and saving as much as possible. I REALLY want to get into land/real estate but I just don’t know where to start. I’ve got myself in a pretty good spot right now where I’m able to live of 50% of my income and putting the rest away. With my schedule I’m about to easily work a second job. I’m still trying to find what I want that to be, but in the mean time I’m working part time for another department. My plan is to find a good second gig and let that start buying properties. I come from an extremely blue collar family that usually lived check to check so I don’t have much experience with crap like this.

[Steel185]

There is a lot of good information above. Defining your goals is important so you know what to buy when the time comes. Limiting your expenses early in life, buying used when you can. Working hard to make a good salary and keep working on new ideas or a side gig to make extra money.

Getting really good at budgeting your money, is one of the most amazing skills anyone could have. I wish I learned it sooner.

Don’t spend, make money where you can. Use any skills you have to make money, sell stuff on amazon, start a small business on the side.

My friend used to work with me and always talked about having a construction company. Well one day he just started it, worked on the side enough to pay for a project manager and then kept tabs on it while he worked his main job. After 10 months it grew enough he quit and went full time. Now he is booked for months and makes 30k a week.

What ever your doing, keep at it, and keep thinking how else you can make money. And don’t spend it.

At some point you will need to “lock down” a place since land prices keep going up. So keep an eye out at all times, knowing what you want will help. But one you look at a few places in person and see places you don’t want, you will get a better idea of what you want.

One thing I learned as a land owner, there is a lot of cost after you get the land. Utilities, well, septic, barn, tractor, shredder, disc, seed, feeders, extra trail cameras...etc....notice I haven’t even put in house, or drive way yet. So the better you get a budgeting, and making money in as many places as you can the easier it is to enjoy your land.

Good luck

[mdnabors]

Tagged. Been thinking about this as well. Great stuff

[Tony Pic]

I contributed heavily to my 401K throughout the years and borrowed from that to not miss a opportunity that came along. The right land in the right pace at the right time.
Borrowed at prime and paid myself back minus a small fee by Prudential. Threw some cash in there and wallaaa! Half azzed ranch owner. I was not able to make any moves until I was about 48 years old. The boys grew up and became self sufficient and got out of my pocket. That gave me some wiggle room to divert cash and get the ball rolling.
Hope you have a good woman who backs ya. Important.

Yes, it is a bit scary making moves with high dollar values to them... But remember this.
No balls, no glory.
I wish you luck with your endeavor and keep your eye on the ball.

[Hart8]

Don't get married.

Sent from my SAMSUNG-SM-G900A using Tapatalk

[WalkieTalkie]

Hard work is the ultimate common denominator

[CTR0022]

Ya dont get married or have kids

[Heath]

Lots of great info. When I did my research, what really stood out to me was almost every land owner said, "Wish I had done this sooner." I look at land as a savings account, whatever you put into it, you should get out but you also get to enjoy it. It is not an account on a screen you watch go up and down everyday, it is a tangible asset.

I also look at the interest on a note as the money I would be spending to lease land too so I could have a place to hunt. The plan was always to buy, fix up, flip and repeat for me until I could get the a good size placed.

We never know how much time we have left on the earth, so while we have to plan for tomorrow, we should live for today as well. I am just glad my wife shares this philosophy as well.

[Farmdog]

Successfully farm 3000 acres for 30 years to make payments on 500 acres and you will never have any money in the bank but you can own land with land payments And really big Ag loans . Make sure you have fun while doing it cause it might eat you alive .Must have really good credit with banks

[Mace]

Stack it up in your 401k... Depending on if your employer matches a decent percentage ... Take a loan out and Use their money to buy your land and pay yourself back over 5 years .... I will be having a payoff party in august!!!!

[STGS]

Stack it up in your 401k... Depending on if your employer matches a decent percentage ... Take a loan out and Use their money to buy your land and pay yourself back over 5 years .... I will be having a payoff party in august!!!!

There is risk associated with this approach. If you leave that job for any reason, you will have to pay back that loan or pay taxes and penalties on the loan.

[DUKFVR]

We bought our 1st place 5 or so years ago. We had just had our latest round with leases that make you pull your hair out. A member on here had a place for sale. I jokingly told my wife we should buy it & screw leasing. She didn't hesitate, lets do it. That place didn't work out ,but we did buy a place. We aren't rich by any means ,but we sat down & figured out exactly what we could afford. If you truly want it, I bet you can find stuff in your normal routine to save money . Eating out less, not buying something ,just cause you want it. When we bought our 1st place, it had me wondering what we had done. Worried about having enough money ,etc. Had several people tell me don't look at it as what you are spending. It is an investment. If you buy it at the right price, you won't lose. After I settled down I realized it was. We kept it for a couple of years & sold at a nice profit & bought a place that was even better. We plan on selling it in a few years & stepping up again. Don't wait IF you are financially able too. Just make sure you look at EVERYTHING when you buy. Improvements cost lots of $$$$ most of the time. Upkeep also cost. Make sure you aren't overpaying for the place. You have to walk away if it isn't a good deal. Me & my wife both wish we would have done this sooner. NOTHING like pulling up to the gate of your own place!! Watching it shape up as you pour sweat into it is one of the most satisfying feelings in the world.