Sell My Land To Get Debt Free?

[RLB]

Sell it, pay off all debt and put the rest in gold.

[BigCountry101]

The problem IMO if he sold the land he may pay off debt but there's a near zero percent chance he'd be able to put the 3k each month into a mutual fund (or other investment).

When you own land and the debt you HAVE to pay the note. When you have an extra 3k in income each month you're free to spend it on whatever. Every single person has a good excuse to not invest, most have excuses every month.

Even if one could get past the new car, truck, boat, deer lease, or whatever makes them happy if you have cash you get zero help when a tragedy strikes. If all your money is in land you can get help. This may sound dumb but I bet it happens to 1 out of 3 people in their life.

100% agree with RR. Some people truly would take that 3k and invest it. I’m not one of those people. I like to keep my money tied up towards house, land, etc. I have to pay it and it appreciates over time. If I have too much cash sitting around it gets blown (hunting trips, boat, etc, but blown none the less).

[captainsling]

Is there any way you can do a 1031 exchange to avoid the capital gains and use some or part of the money to buy more land and pay down the debt at the same time? Not exactly sure of all the rules on 1031s, but you may check into it.

[CTR0022]

I would sell it for no other reason than I would get bored hunting 23 acres.

Become debt free, use the money to go chase western big game or get on a really nice lease in texas, nice vacations or whatever you want with the added discretionary money.

[OldRiverRat]

Sell it
Get debt free and if you are frugal you can save the money to pay cash for double the acreage in Oklahoma in no time at all

That’s what I would do


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[TeamAmerica]

I would be looking for a way to leverage that land to buy 30 more acres next to it. Do you have a plan to pay off your current mortgage in time to retire?

The only way I would be selling land is if I had a plan to buy more! Good luck.

[trophy8]

From what you said, surrounded by big neighbors, I’d keep it. That’s hard to find. If you get in a bind, make a decision then, but I’d keep it. And I don’t carry much debt.

[Mike D]

I would sell it for no other reason than I would get bored hunting 23 acres.

Become debt free, use the money to go chase western big game or get on a really nice lease in texas, nice vacations or whatever you want with the added discretionary money.

This sounds crazy to me. Sell an asset that will turn a big return, then go pay to rent somebody else’s land for them?

He can do everything you said after he’s debt free and he will still own land.


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[txlawdog]

Dave Ramsey keeps getting mentioned. First thing he would say is sell the truck. Paying interest on a depreciating item is not good. He would say get a second job, most just don't do it.
He also says only people who are millionaires should buy new vehicles and then pay cash. When you write a check for a new vehicle you usually don't spring for all the bells and whistles.
I would not sell the land if I didn't just have to. Like all have said it is not getting any cheaper. I'm sure there will be some corrections at some point but there is no land other than what is already here.
It's hard to take that extra cash each month and do the right thing and not splurge for something because you want it or think you deserve it. We all are guilty of it.
I hope you make the right decision for you and the family. As many have said replacing the land probably puts you back in debt. I don't think there is any such thing as good debt. Even those no interest loans for furniture and stuff is still a payment any way you look at it. I don't agree on everything Dave says but he does have some good points. Take care all, come on bow season.

[Briar Friar]

The land was a true blessing sent from God. It was an owner finance deal with only $5k down 6% for 30yrs fixed for raw land! Heaven sent is the only way I can explain it.

The note holder has an awesome setup worthy of mimic. Either way theyll get paid.

Drive a beater. Sell the noted cars. I wouldnt reckon theyll increase in value. Pay the debt and decrease debt and payment load.

The land wont decrease in value. Whereas, the land is either an asset or liability. Doesnt sound like it produces (pays for itself) and might be a liability.

God bless you in your decision MrTime.

[Atfulldraw]

2nd or 3rd job would’ve been my answer, but I love land and houses

I care way less about the money we have in the bank, our real estate is where it’s at…..

Today we spent time working on the tractors at the ranch, and tonight we will sleep at our little house on the river, bright and early tomorrow I’m flying out to sleep in my bed in south Florida for a few days…..our lives are richer for the time we spend at each of our little places.

I’ve got money in four banks and none of them will let me sleep there.

Part of me regrets every piece of land I’ve ever sold, some were worth it because we flipped them into a bigger chunk.

[trykonroye]

Its raw land and was a placed that checked alot of boxes for us. And we did buy it to build on to retire one day. For now just hunt there. It backs up to 2200ac on rear fence, 750ac on east fence and 350ac on west fence, north is the county road. So it hunts bigger than it is.

Our primary home is in Austin area and the land is out in Bastrop so about an hour away. The primary has also blown up in price but we really don't want to sell it. So if we cash out on one it would be the land I guess.

is there an option to sell the primary? THen pay it off and start moving towards living on the 23 ac? Just deal with a commute until you hang it up?

[Radar]

A few months ago, I was offered 13k an acre for my place. I would get to keep minerals as well. They wanted to develop and bust it up into 25 acre lots.

Some told me to sell and buy something else, but it kinda made me sick to see it get all destroyed. They ain't nothing around here that I could buy to replace it and money does not seem to be worth much anymore.

I told the man that I'll just keep it and not to bother me anymore about it.

[KactusKiller]

Here is my .02 as a land owner and business man. Not all debt is bad. Land debt is not bad, home debt is not bad. Any real estate debt is not bad. We just went thru one of the best times in history to buy and own real estate with the low interest rates. Hopefully you took advantage and refinanced both land and home. If either or both is under 4% then that’s basically “free money”. The only good thing about having one paid off is being able to use it to finance more land. If you still have some time till retirement then hold on to it. Yes it’s a good offer now but that offer or a better one will come. Unless your in a financial crisis right now being debt free won’t do anything for you financially. Your best retirement tool/asset is that land. The increase in value will way outpace any investment right now you could make in retirement.
I would even say this, if your home is financed under 4% and you a person that likes to pay extra each month to pay it off, don’t. Put that extra payment into the land or a nest egg for investment.
There is absolutely zero reason to pay off any mortgage done in the last 2-3yrs. Low rate financed debt is a gift. Why pay off something only costing 4% or less when inflation alone is double that which would make keeping money in a bank a loosing scenario.

Just some food for thought.

[TxBowHntr]

Don't think of it as a fun place to hunt, fish, hike, etc... Think of it as the best, highest returning investment you can have. That initial $175K is working it's @$$ off for you, and it will only get better. Would you cash out your 401K to pay off your debt? No. I agree with getting your debt (not including mortgage) to zero and keeping it there, but do not sell your investment off. If you do, you will be complaining about it later down the road when you retire. It'd be like buying Microsoft at $12 per share, selling it for $24 per share, while it is now at $264 per share. Land should almost always be a part of a well rounded portfolio. It is one of the safest investments you can make.