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Old 11-16-2021, 11:21 PM   #1
ctom87
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Default Is land in your investment portfolio?

I am curious to see how many folks have land they own where at least one purpose is an investment to sell later on. Sure, you are probably hunting it or enjoying it somehow, but if you consider it an investment as part of an overall strategy, I have a few questions...

How much did you put down %-wise? Is there a number where you gain a benefit like 20% on a home saves you from PMI?

If you and hunting it also, how much was or is enough that you are content with?

How far away is it, and do you regret it wasn't closer? Would you use it more if it were closer?

What are the cons?

What is typically the best interest rate you can get on land that is not making any income or a homestead?

What are ways you can earn $ if your not living there?

What is required to keep an exemption?


We leased 50 acres last year and 50 ended up seeming small after the end of the season. Any minimum acreage you recommend?

Any other advice or recommendation? Tips?

Lots of questions, I know... but it is something I would like to consider. At the least, I think my kid and I would enjoy it.
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Old 11-16-2021, 11:38 PM   #2
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All land is an investment whether you plan on holding it short term or long term. No pmi to worry about but land bank usually wants 20% down. Go land bank on land deal, with patronage pay back no one beats them. Our land is an hour away and wouldnít want it much further than that as I can zip down anytime and make it back before the wife knows I left . As far as making land pay for itself good luck, outside of getting luck and having oil found your land isnít going to really pay for itself especially as high as itís going. That said we have section and I wouldnít go back to leasing land. Love the freedom to do what I want, and never worry about getting kicked off. Deer improve cause we pass on your bucks and we added a pond so fishing a couple hundred yards off the back porch.
Couple years ago we refinanced the land and built a nice barndo which really made the land worth it.


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Old 11-16-2021, 11:52 PM   #3
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Just locked in a few weeks ago at 4.6% w/ 1% patronage paid back yearly with Louisiana Land Bank. 25% down on timber/rec land. No one else was even close.
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Old 11-17-2021, 12:00 AM   #4
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I should preface the money making factor with i don't know much of anything about working the land or how to make it work for you. A few ideas...if say 30% is open field could it be turned into hay? At least something like that there is some income, although I agree not necessarily looking for it to pay for itself. Thanks for the advice folks keep it coming.
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Old 11-17-2021, 07:08 AM   #5
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It may just be me but it’s hard to think of buying a big tract to hunt and financing it and considering it an investment. Will the value go up, probably so. Do you borrow money to buy stocks? Probably not. If it was something to buy and do some quick improvements to and sell, that would be an investment to me.

I found a place I really wanted to buy but it was 7 hrs away and my note would me $1200 a month for 30 years at 4% and I would only go there 8-10 times a year and the more I looked at it the more I realized I need to finance less money or go there more to justify buying
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Old 11-17-2021, 07:17 AM   #6
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My wife and I just sold our place and bought another, much larger tract, that we plan to build on. I look at land as an investment in the future. We got what we think was a great deal, and improving it will only make that deal seem much better. In the future, if we decide to sell, I think weíll do pretty good in our returns. If not, our boys will have something to own. Land is going up, and places are being broke up, so if you can afford to buy a bigger place, loan or not, you stand to make money in the future. Buy/sell enough for profit and you will eventually be able to pay cash for a place.


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Old 11-17-2021, 07:27 AM   #7
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We own 26 acres an hour away. Purchased before pandemic. We had a chance to sell it for 50% more for what we had purchased for just a year prior. We chose to stick with it and pay it off as we love owning land. I do consider it an investment for retirement, 30 years from now I should be able to either build a cabin and retire on it, or sell it for much more than I purchased it for to help with other plans. Buy dirt, guys. May be hard to find it when retirement comes creeping.
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Old 11-17-2021, 07:54 AM   #8
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If financing you'll only "make" money in the very long run. Investing in markets have always had much better returns.

But I bought as a combo. Investment plus I don't trust Wall Street crooks. Sure if they implode we are all screwed but at least I'll have land.

Ways to make money depend on the land. Cattle lease could pay yearly taxes. AirBnB? Sell a few hunts to get back deer feed bill money. IMO there's zero chance to actually make money but possible (without financing) to break even and enjoy rising land prices over the years. Won't be cash until you sold but at least in your head you enjoy it.
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Old 11-17-2021, 08:26 AM   #9
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While I agree with some above ask any wealthy individual and every one of them will say borrowing money is how you become wealthy. Dave Ramsey is only wealthy because people pay for his advice and buy his books. The people he helps are still living paycheck to paycheck most of the time.
Now to clarify borrowing money to buy things like boats, vehicles, atv etc is not what I’m talking about(Ramsey is correct on this part) Borrowing money for investment type transactions is how you build wealth. But it has to be for investments, not because I want it or the hunting will be good. If your truly looking for investment reasons #1 factor needs to be location, location, location. There is a reason that the closer you are to metro areas the higher the value even if that isn’t as nice as other parts of the state. If your doing it for investment it’s a tough time to buy for that because the market is inflated on the price side but from everything I have read the prices WILL NOT go down. The rate of growth may stabilize but raw land prices will not crash say what could and has happened in the past with home prices. The market will stay hot as long as the interest rates stay low, it’s too easy to spend the banks money right now which is why IF you can find the right place at a good price then it’s still a good long term investment if your buying in the right location.

As far as being income producing, unless you already have the equipment farming/ranching will not be a real income producer unless your buying say 100+acres and even then you not going to make a living of it but just help keep the taxes low and pay the taxes.

As far as hunting you could do it on 30acres if all your neighbors are bigger and it’s a game rich location. But that all depends on the area your in and what your expectations are.

Last if your truly looking for an “investment” and hunting don’t buy one of these 10-40 acre ranchettes where they have taken a 200acre ranch and split it up in to 10-20 plots. You won’t be happy in the middle of them for hunting and the person that split it made majority of the profit already, future growth in that situation will be limited I believe.

Do some research and don’t settle.
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Old 11-17-2021, 08:45 AM   #10
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^good post. Truth
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Old 11-17-2021, 08:46 AM   #11
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And..... lands fun
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Old 11-17-2021, 09:10 AM   #12
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Great information. I appreciate everyone responding!

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Old 11-17-2021, 09:19 AM   #13
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Absolutely! A lot of it
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Old 11-17-2021, 09:21 AM   #14
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Originally Posted by KactusKiller View Post
While I agree with some above ask any wealthy individual and every one of them will say borrowing money is how you become wealthy. Dave Ramsey is only wealthy because people pay for his advice and buy his books. The people he helps are still living paycheck to paycheck most of the time.
Now to clarify borrowing money to buy things like boats, vehicles, atv etc is not what Iím talking about(Ramsey is correct on this part) Borrowing money for investment type transactions is how you build wealth. But it has to be for investments, not because I want it or the hunting will be good. If your truly looking for investment reasons #1 factor needs to be location, location, location. There is a reason that the closer you are to metro areas the higher the value even if that isnít as nice as other parts of the state. If your doing it for investment itís a tough time to buy for that because the market is inflated on the price side but from everything I have read the prices WILL NOT go down. The rate of growth may stabilize but raw land prices will not crash say what could and has happened in the past with home prices. The market will stay hot as long as the interest rates stay low, itís too easy to spend the banks money right now which is why IF you can find the right place at a good price then itís still a good long term investment if your buying in the right location.

As far as being income producing, unless you already have the equipment farming/ranching will not be a real income producer unless your buying say 100+acres and even then you not going to make a living of it but just help keep the taxes low and pay the taxes.

As far as hunting you could do it on 30acres if all your neighbors are bigger and itís a game rich location. But that all depends on the area your in and what your expectations are.

Last if your truly looking for an ďinvestmentĒ and hunting donít buy one of these 10-40 acre ranchettes where they have taken a 200acre ranch and split it up in to 10-20 plots. You wonít be happy in the middle of them for hunting and the person that split it made majority of the profit already, future growth in that situation will be limited I believe.

Do some research and donít settle.

Well said
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Old 11-17-2021, 10:05 AM   #15
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First borrowing for land isn't a wealth tool it's a risk tool period. It can be a dangerous risk tool or a “safer” risk tool, but its never a “Safe” risk tool. There is no true 100% financing.

As a general rule, pure Recreational land IMO isn’t a great wealth tool unless you are building out to mark it up exponentially and sale. Example building out levee system to flood corn, or HF turn key hunting ranch, etc. Out side of that or mineral speculation it’s a interest rate dependent appreciation gain. Now it is a “good” tool, it's a forced savings, and land depreciation is almost non-existent.

And you can absolutely make money farming with out farming. Crop share out on 1/3’s, CRP, cash lease etc. All are risk diversification tools.

Now my ideology doesn’t fit for everyone, as my land holding are very much non-recreational as a whole but I don’t look at debt as a wealth tool, it's a risk tool. You true wealth tool is your ability to save your income. When land is paid off it becomes positive income generating not a cost factor trying to out run interest costs.

With all this said, I've amassed a few a acres, using same ideology and Im 100% debt-free. Well, until I find some more land I can't pay cash for, then my other land becomes it's payment vehicle as I've done over and over again.

Everyone's risk and saving level is different, no one perfect answer.

Last edited by Texans42; 11-17-2021 at 10:07 AM.
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Old 11-17-2021, 10:26 AM   #16
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Quote:
Originally Posted by Texans42 View Post
First borrowing for land isn't a wealth tool it's a risk tool period. It can be a dangerous risk tool or a “safer” risk tool, but its never a “Safe” risk tool. There is no true 100% financing.

As a general rule, pure Recreational land IMO isn’t a great wealth tool unless you are building out to mark it up exponentially and sale. Example building out levee system to flood corn, or HF turn key hunting ranch, etc. Out side of that or mineral speculation it’s a interest rate dependent appreciation gain. Now it is a “good” tool, it's a forced savings, and land depreciation is almost non-existent.

And you can absolutely make money farming with out farming. Crop share out on 1/3’s, CRP, cash lease etc. All are risk diversification tools.

Now my ideology doesn’t fit for everyone, as my land holding are very much non-recreational as a whole but I don’t look at debt as a wealth tool, it's a risk tool. You true wealth tool is your ability to save your income. When land is paid off it becomes positive income generating not a cost factor trying to out run interest costs.

With all this said, I've amassed a few a acres, using same ideology and Im 100% debt-free. Well, until I find some more land I can't pay cash for, then my other land becomes it's payment vehicle as I've done over and over again.

Everyone's risk and saving level is different, no one perfect answer.
I believe your 100% correct in your information as well. Anything in investments is high risk. For someone who already has land through family inheritance or through large amounts of money made through other means you can buy more land without borrowing or debt. But for most this isn't a reality. If you don't have wealth from another source you have to take risk. Risk comes through the stock market, rental properties or land both Ag and Commercial. If you don't have risk there usually isn't much reward. That's why its important to do your homework and know ahead of time what the end game will be.
Fore someone that doesn't already have wealth and buys land as their sole future investment while basing the purchase purely off the "fun factor" is extremely risky from a personal financial perspective.
I do think the risk is higher right now because land prices in TX are already inflated. The tricky part is trying to decide where the ceiling is. Are prices maxxed out or is there still room to grow? No different than the stock market. 3 yrs ago if you told someone that the DOW would be over 36,000 they would have said you were crazy. Where I currently own land 6-8 yrs ago you could get some really nice land for 1-2k per acre. Now the avg ASKING price is 6-10k and as high as 14k per acre. The game is buying low and selling high, these rules apply to all investment games.

It's not for everyone but it can be extremely rewarding as well. Just know it is not the Golden Goose as alot make it out to be.

Last edited by KactusKiller; 11-17-2021 at 10:38 AM.
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Old 11-17-2021, 10:32 AM   #17
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Someone with more experience can talk about this but I'll bring up the major consideration of a locked, long term loan intrest rate as a hedge against inflation rates.
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Old 11-17-2021, 10:53 AM   #18
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Originally Posted by KactusKiller View Post
I believe your 100% correct in your information as well. Anything in investments is high risk. For someone who already has land through family inheritance or through large amounts of money made through other means you can buy more land without borrowing or debt. But for most this isn't a reality. If you don't have wealth from another source you have to take risk. Risk comes through the stock market, rental properties or land both Ag and Commercial. If you don't have risk there usually isn't much reward. That's why its important to do your homework and know ahead of time what the end game will be.
Fore someone that doesn't already have wealth and buys land as their sole future investment while basing the purchase purely off the "fun factor" is extremely risky from a personal financial perspective.

It's not for everyone but it can be extremely rewarding as well. Just know it is not the Golden Goose as alot make it out to be.

Concur completely, I just want to highlight peoples biggest wealth builder is in their ability to save, not so much in their ability to borrow.

Looking at land as a separate business entity and working hard to have it self substantiating, so that it becomes an income source rather then a cost, should be ultimate goal is how I look at it. Been my methodology.
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Old 11-17-2021, 10:55 AM   #19
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I was blessed by an Uncle , who's land I had always hunted and fished on my entire life , that left me some of his estate . It was not money I expected or needed ; my wife and I have worked hard to plan our future / retirement . I took the money and bought 131 acres with an old " Moonshiner's Cabin " on it . I was then blessed as a friend had leased the land for nearly 20 years to run around 30 cow /calves from around Memorial Day - Thanksgiving . It is a Great Recreational Tract with good fishing and hunting and only 59 miles from our home . I have setup it up so the cattle lease with cover the taxes and insurance . It has turned into asset that my children and grandchildren love and we plan to keep in the family forever .

My elders had always stressed how good an investment land is , especially with mineral rights intact . I have to agree that there are few " investment " that can be so rewarding both financially and recreationally .
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Old 11-17-2021, 11:20 AM   #20
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We bought 217 acres to hunt and recreate on in 2008 I think. I spent lots of time down there cleaning up with my dozer, backhoe, and tractor. Planted spring and fall food plots, harvested timber twice, mostly for my own convenience and to offset what I was spending. Built a 1200 sq. ft. house, drilled a water well for irrigation, and put in a poor man’s irrigation system. That consisted of piping water to the plots and irrigating with a gun that hooked up to 2” fasline.

I paid cash for the place, cash as the house was built, and had the place on timber exemption. We sold the place a couple years ago with a down payment and we financed it. It’s probably the best investment I ever made.
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Old 11-17-2021, 11:38 AM   #21
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Short term....no.

It will be long term as we age.
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Old 11-17-2021, 11:50 AM   #22
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No - I would never make a leveraged investment that did not have positive cash flow within a few months. If I bought some it would not be as an investment.
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Old 11-17-2021, 11:55 AM   #23
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Short term....no.

It will be long term as we age.

But as RiverRat1 long term the market would totally blow it away. Now you wonít have the same ebb and flow of the market on a land purchase, in 30 years the same value isnít he stock market 11 times out of 10 will be worth more.

This is the same with collector cars, guns, etc. If your goal is to make money then buy total stock market ETF shares. No amount of hay production, cattle production, lease hunters are going to net you anywhere near the return.


If you want and can afford land, then buy land. But to convince yourself you are making money isnít accurate. Yes it will probably be better than having money sit in the bank but beating the 3-5% interest rate on random rural hunting land with an increase in value is doubtful.
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Old 11-17-2021, 12:04 PM   #24
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I do, but not "land" as much as larger lots. Latest is six acres in a gated development several miles outside of town. I expect to make $100,000 - $150,000 profit after holding 2 years. I wouldn't do this without an intricate understanding of our local house/lot market. If the profits are not what I am hoping, that's ok. I'll either hold longer or ditch it for the next one. I see this as a near zero risk investment, unlike anything in the securities market. I view it as a safe place to park cash. I would not finance a deal like this.

And for what it's worth, I hunt any hill country property with 5+ acres. This year reaped a 135" 11 point.
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Old 11-17-2021, 01:17 PM   #25
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Old 11-17-2021, 01:46 PM   #26
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Great thread.
Can you still purchase mineral rights anywhere in Texas? At what rate/cost do owners let these go?
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Old 11-17-2021, 03:07 PM   #27
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Great thread.
Can you still purchase mineral rights anywhere in Texas? At what rate/cost do owners let these go?

Rarely if ever are they conveyed on all the listings Iíve seen west of Dallas.
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Old 11-17-2021, 03:28 PM   #28
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Good stuff.

Here is another aspect to consider, that may get some folks a little bent out of shape...

Instead of spending $3k (give or take) on a lease each year, would you be better off skipping the lease for a few years and applying that towards money down on a little piece of land?

I have been in the process of looking for 10-15 acres in Oklahoma, it is not much land but I would rather own my property and not have to worry about anyone else or "throwing away" money on a lease each year. Once I find the place, I wouldn't be surprised if I get a chance at a bigger buck than a lot of 800 acre+ leases in Texas.
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Old 11-17-2021, 04:44 PM   #29
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Good stuff.

Here is another aspect to consider, that may get some folks a little bent out of shape...

Instead of spending $3k (give or take) on a lease each year, would you be better off skipping the lease for a few years and applying that towards money down on a little piece of land?

I have been in the process of looking for 10-15 acres in Oklahoma, it is not much land but I would rather own my property and not have to worry about anyone else or "throwing away" money on a lease each year. Once I find the place, I wouldn't be surprised if I get a chance at a bigger buck than a lot of 800 acre+ leases in Texas.
I had a spot on a 2200 acre lease before I bought my 640 acres. I put a lot of money down and still spend the equivalent of my annual lease payment every three weeks on the land I own. Leasing is a waaaaay better deal financially if you're looking for cost/acre of access.
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Old 11-17-2021, 05:31 PM   #30
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Concur completely, I just want to highlight peoples biggest wealth builder is in their ability to save, not so much in their ability to borrow.

Looking at land as a separate business entity and working hard to have it self substantiating, so that it becomes an income source rather then a cost, should be ultimate goal is how I look at it. Been my methodology.

No one gets wealthy saving their income, to become wealthy they must take saved income and let it produce income on top of it self. Investing is how the rich become rich.
I love raw land but if I were trying to get wealthy I would invest in income producing real estate first. But once I had enough extra disposable income raw hunting land is a great place to put your money.


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Old 11-17-2021, 05:55 PM   #31
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I had a spot on a 2200 acre lease before I bought my 640 acres. I put a lot of money down and still spend the equivalent of my annual lease payment every three weeks on the land I own. Leasing is a waaaaay better deal financially if you're looking for cost/acre of access.
Yep, unless you have the disposable "cash" I would not suggest buying small parcels of land for hunting alone. You'll spend 5-6 times as much a yr just on monthly payments alone for 20-30ac not including all the overhead costs. Using the land while you own it is purely the gravy on the biscuit.
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Old 11-17-2021, 05:56 PM   #32
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.
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Old 11-17-2021, 06:00 PM   #33
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I have bought and sold a number of properties over the years. Some just raw land to hold for appreciation and then sell. Others were recreational -

Best thing I ever did was become best friends with a really quality real estate agent - he was always on the look out for me for a good buy and brought me most of the properties I bought -

Just remember that the downside to land is it is not liquid - if you buy then you better be sure that you can hold and afford it for the long term because the market will fluctuate over time
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Old 11-17-2021, 06:21 PM   #34
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Being one of the older people on here, I wish I would have bought a lot more back in the 70's for 300 to 350 per acre. The advantage to owning land is the write off's and depreciation. The other advantage is you cannot just cash it in quickly and spend the money on toys.
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Old 11-17-2021, 06:56 PM   #35
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Originally Posted by Johnny_Dodson View Post
No one gets wealthy saving their income, to become wealthy they must take saved income and let it produce income on top of it self. Investing is how the rich become rich.
I love raw land but if I were trying to get wealthy I would invest in income producing real estate first. But once I had enough extra disposable income raw hunting land is a great place to put your money.


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To invest you have to save first. Iíve done well with farm land especially on the reinvestment of income for buying more, Iíve amassed a few acres. Just like re-investing divides. Itís been one of my best investments, second only to my job and ASU/RSUís when we went public
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Old 11-17-2021, 07:00 PM   #36
RMW
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When we die, we will all own the same amount of land at the cemetery
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Old 11-17-2021, 07:29 PM   #37
doghouse
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Quote:
Originally Posted by RMW View Post
When we die, we will all own the same amount of land at the cemetery
Yep^^^^^
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Old 11-17-2021, 07:38 PM   #38
Truckman
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Originally Posted by KactusKiller View Post
While I agree with some above ask any wealthy individual and every one of them will say borrowing money is how you become wealthy. Dave Ramsey is only wealthy because people pay for his advice and buy his books. The people he helps are still living paycheck to paycheck most of the time.
Now to clarify borrowing money to buy things like boats, vehicles, atv etc is not what Iím talking about(Ramsey is correct on this part) Borrowing money for investment type transactions is how you build wealth. But it has to be for investments, not because I want it or the hunting will be good. If your truly looking for investment reasons #1 factor needs to be location, location, location. There is a reason that the closer you are to metro areas the higher the value even if that isnít as nice as other parts of the state. If your doing it for investment itís a tough time to buy for that because the market is inflated on the price side but from everything I have read the prices WILL NOT go down. The rate of growth may stabilize but raw land prices will not crash say what could and has happened in the past with home prices. The market will stay hot as long as the interest rates stay low, itís too easy to spend the banks money right now which is why IF you can find the right place at a good price then itís still a good long term investment if your buying in the right location.

As far as being income producing, unless you already have the equipment farming/ranching will not be a real income producer unless your buying say 100+acres and even then you not going to make a living of it but just help keep the taxes low and pay the taxes.

As far as hunting you could do it on 30acres if all your neighbors are bigger and itís a game rich location. But that all depends on the area your in and what your expectations are.

Last if your truly looking for an ďinvestmentĒ and hunting donít buy one of these 10-40 acre ranchettes where they have taken a 200acre ranch and split it up in to 10-20 plots. You wonít be happy in the middle of them for hunting and the person that split it made majority of the profit already, future growth in that situation will be limited I believe.

Do some research and donít settle.
Well said.
Iíd like to add that another real advantage to land is depreciation of everything on it. Fences, structures, improvements, equipment, etc. Eventually when itís sold, you will pay the taxes, but you can always flip to another piece of land using an exchange.
Income can be livestock, hunts, hay, Airbnb, and even the patronage check.
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Old 11-17-2021, 07:39 PM   #39
MIHunter
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Following
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Old 11-17-2021, 07:46 PM   #40
bcmuzzy
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Default Is land in your investment portfolio?

My wife and I bought 40 acres two years ago, in Oklahoma. Itís less than an hour and a half from where we live now. We Purchased it with the purpose of retiring there in about seven years. Itís got great deer on it so thatís a bonus for me. As far as investment I think every property is an investment. I feel like I got a really good deal on this piece of property. We put $25,000 down and only owe what a nice Ford diesel pickup would cost. Like the saying goes, everything is for sale for the right price.


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Old 11-17-2021, 08:06 PM   #41
3under3
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Quote:
Originally Posted by RMW View Post
When we die, we will all own the same amount of land at the cemetery
I had a finance professor that invested in burial plots, so much so that many cemeteries told him he couldnít buy any more because he was setting the market. Recession proof land investment with no maintenance or property taxes.
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Old 11-17-2021, 09:00 PM   #42
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Bought a little over 200 acres in Stephenville a few years back. Paid cash. Could sell and make a very nice profit if I were to sell today. Is it an investment, of course. All land is. My reason for buying it was to show my kids my passion for the land, animals and outdoors. Priceless opportunity if you ask me.
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Old 11-17-2021, 09:02 PM   #43
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Yes.
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Old 11-17-2021, 09:05 PM   #44
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I have certainly been blessed to have found a great community i can bounce ideas off of here. I sincerely thank all of you for the advice. This is a great place. Still hoping to learn more. Thank you again.

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Old 11-17-2021, 09:45 PM   #45
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We have a few parcels in Arkansas that we paid cash for.
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Old 11-17-2021, 10:23 PM   #46
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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!
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Old 11-17-2021, 10:43 PM   #47
txtrophy85
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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

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Old 11-18-2021, 09:14 AM   #48
DZM
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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.
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Old 11-20-2021, 01:25 AM   #49
tradslam
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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.

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Old 11-20-2021, 07:31 AM   #50
Hart8
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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.
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