Is land in your investment portfolio?

[wingnut]

I haven’t found a better investment! I try to buy as much as the bank will let me. I have bought raw hunting land to cattle ranches and have done well with both! My hunting property in Oklahoma is 2:15hr from my house in Texas. I can be there in a snap! I highly encourage you to purchase some land, you want regret it! It’s very rewarding and enjoyable! I’ve made lots of memories with friends and family! Also met some great people along the way!

[txtrophy85]

Rural land certainly is an investment.

I’ve been in the Ranch Real Estate business for 13 years and I can’t begin to tell you how prices have gone up since then. Stuff we were selling for $2000/acre in 2010 is now $4000/acre. Stuff we were selling for $6000/acre in 2013 would bring $15,000/acre today.

I would not put all my eggs in one basket but land purchases I believe certainly have a place in an investment portfolio, it’s a hedge against inflation and a good place to park money long term and can be a good short term investment vehicle as well.

Anyone has any questions feel free to PM me

[DZM]

Yes as much as you can get. I look at it like this: Sure the stock market has great returns but are you actually enjoying any of those returns or reinvesting those dividends? If your portfolio of stocks double, does your everyday life improve? Yes I know it will long term or if you sell out. I bought 160 acres 13 years ago when I was 30. Place had a 10 yr CRP contract on it that would pay half the note if I put it on a 10 yr note. Now it’s paid off and new 10yr CRP contract on it brings in income. It has about 55 acres of brush on it and I deer, hog, and quail hunt it every year. I absolutely love the place. It has quadrupled in value and myself, family, and friends have all enjoyed it over the years. So my point is if had been putting that money in the market that I paid on the note would it be worth more than my land at this point? Mabey? Mabey not? Most cases the market will probably win out on paper, but you won’t enjoy those returns until you retire. For me I’ll invest in land every time and enjoy the memories and adventures along the way. I now have a few more places and love every minute of it.

[tradslam]

I bought my first true investment place in 18 and have re racked my business plan after COVID (mostly rental units and limited vacant land). I’ve tracked every part of what I’ve done, with limited money (I’m in law enforcement).

While I finance a lot still, I’m slowly moving towards 75% of my properties owned outright. For me that means I buy and flip mostly within 1-3 years. I subdivide or improve everything in that time.

While buying everything possible financing can make you rich faster, it has higher risk. After looking back at everything I’ve done the properties I financed ended up equalling out pretty close to my cash deals collectively. The first bigger deal I did I got stressed and worried and let doubt creep in. I ended up leaving money on the table just to get it done. Now I still made money but the percentages shifted a fair amount.

My cash deals I approach totally different, while it doesn’t make sense it happens every time. Now I don’t know anyone else that does this personally so this is all my cash doing what I think is right. So that might change with different people. Taking every dollar you have and putting it out there is not easy lol.

That all being said I’ll never stop investing in land, homes, multi units, if it makes sense and the right deal is there.

[Hart8]

One of my best customers..Known him for 30 yrs now..
Crummy horses,and a decent house.3 yrs later..Better horses,and a bigger place..2 yrs later,better horses,bigger place,built a new barn/ shop.Decent house.3 yrs later.Super horses,beautiful house,pretty place,with a pool...I asked him how he put it all together in the 12-14 yrs I knew him..This man was pretty darn wealthy by then..He said,"I bought cheap corner lots,all over Texas"."Cheaper the better".He owns a fairly large ranch in Oklahoma now,and makes his living selling,and buying cheap commercial property.

[SJP51]

There's lots of guys with no place to got out and hunt or even just kick around. I've thought if I bought a place near town, I could day lease it for hogs or varmints during the off-season. $75 to $100 cash money to have the run of the place for 24-hours. Would pay the corn bill and a few bucks towards taxes. Might get a regular clinetel and do Ok with it if the hogs would cooperate.

[rtp]

One of my best customers..Known him for 30 yrs now..
Crummy horses,and a decent house.3 yrs later..Better horses,and a bigger place..2 yrs later,better horses,bigger place,built a new barn/ shop.Decent house.3 yrs later.Super horses,beautiful house,pretty place,with a pool...I asked him how he put it all together in the 12-14 yrs I knew him..This man was pretty darn wealthy by then..He said,"I bought cheap corner lots,all over Texas"."Cheaper the better".He owns a fairly large ranch in Oklahoma now,and makes his living selling,and buying cheap commercial property.

Interesting story. That goes against everything I’ve been told about real estate investing. Just goes to show you the experts aren’t always right.


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[txtrophy85]

One of my best customers..Known him for 30 yrs now..
Crummy horses,and a decent house.3 yrs later..Better horses,and a bigger place..2 yrs later,better horses,bigger place,built a new barn/ shop.Decent house.3 yrs later.Super horses,beautiful house,pretty place,with a pool...I asked him how he put it all together in the 12-14 yrs I knew him..This man was pretty darn wealthy by then..He said,"I bought cheap corner lots,all over Texas"."Cheaper the better".He owns a fairly large ranch in Oklahoma now,and makes his living selling,and buying cheap commercial property.

Real question is what was he doing to afford to buy all these cheap lots all over Texas?

Had to make it before he could spend it on properties

[Greenheadless]

Tagged for later, as I am going to start looking soon.

[ctom87]

Another question for the brain trust here.

Now that the market is slowing (because rates are going up) would it be an ideal time to buy land? My thoughts are having cash to get a good deal would be beneficial, but I don't want to pay for all of it. So would the higher interest rate be more prohibitive then the value of the land slowing or possibly even going down, in the event of a market crash?

[ForEverlast]

Buy Dirt...It has been by far the best investment i have made all is now paid for but with cattle/ag exemptions you are able to take advantage of other investments in equipment that you can write off as well as if it is hunting acreage the value is priceless in the memories you can make etc. They are not making any more and everyone desires to have it so it won't ever lose you money in my opinion!

[Jon B]

I really need to put some money in land.

[miket]

Another question for the brain trust here.

Now that the market is slowing (because rates are going up) would it be an ideal time to buy land? My thoughts are having cash to get a good deal would be beneficial, but I don't want to pay for all of it. So would the higher interest rate be more prohibitive then the value of the land slowing or possibly even going down, in the event of a market crash?

I have the same question. Been holding for a while now, cash is building. Want to capitalize on the possibility that prices may come down a bit due to higher interest rates.

Im looking at certain parts of OK and AR. 160ac plus for me

[Quackerbox]

My 2 acres has doubled in price since this thread started. I'm happy with that

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[Gumbo Man]

My 2 acres has doubled in price since this thread started. I'm happy with that

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Yeah wait till I buy the acreage next to it and move all my relatives in. We’ll see what the value is then. LOL.

Edit: I don’t know what makes me do these things Shane. I must be out of control.