Buying some of Grandma’s land

[Txtourist]

This kind of came up out of nowhere but I should have seen it coming. Long story short wife’s grandma is 89, widowed and owns a little under 2000 acres of great farm land and unbelievable hunting land in the middle of South Dakota.
I’d love to buy the whole thing over the next 30 years but the family is moving faster than me. I’m looking at 600 acres at $3000/acre. I’m 40 years old, make decent money but I don’t have 1.8M in my piggy bank. The crop rent which has been low brings in about $50k/year. I could make up the rest and am even thinking it wouldn’t be a big deal if I funded the land versus retirement accounts.
I’d love any and all input. Talk me into it or talk me out of it. Any ideas?
I’ve hunted there for 20 years, pheasants, waterfowl, sharptails, coyotes and white tails. I could see myself retiring there pretty easy. It’s prime farmland for the area with some low areas and a couple tree groves which are dynamite for deer.

[Bowtech38]

Do it they don’t make any more land. I’m from Sioux Falls originally

[9452772]

I don't have a whole lot of input. I assume $3,000 an acre is a good deal for that area? Something about not funding retirement don't sound right. At the end of the day you need to have some sort of income when you retire. I like to take my time and try to let the emotion settle down then look at it from a pure finance perspective. See what it looks like on paper then try and bring some sort of sentimental / family feeling back into the mix. There is a plus knowing the neighbors. Hope it all works out and good luck.

[drwilliams]

Is that 50k crop income on the 600 acres or the whole 2k acres? Sounds like a awesome place and a great opportunity for you. Good luck in your adventure!

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[Txtourist]

Is that 50k crop income on the 600 acres or the whole 2k acres? Sounds like a awesome place and a great opportunity for you. Good luck in your adventure!

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50k rent on the 600.

[camoclad]

USDA loans up to 600k. Other programs that can help. Get the whole thing would be my advice. 3k for good row crop sounds extremely cheap

[nativeaustin]

If you don't buy it you will be talking about how you could have bought this land back in the day. Everyone has those stories.

[topwater blowup]

Buy it.........

[stoic]

If it's your money it's easy for me to spend.

There is lots of land that I would love to buy if I had the money. I know that it will be worth the investment in 5 to 10 years...

Still have to be able to make the money work though

[W E H]

$6m is huge number but if you could swing it, could you sell off enough of the property in 100 acre tracts at $5000 an acre for you to have either your part paid off or more manageable financed $ amount. You might could roll the proceeds from the sales into a 1031 to fund the part you want to keep. Maybe work with the family (yeah tough to do sometimes) to let you parcel it out. Take balloon note with family with bulk of proceeds going to them until you’ve got your part down to a low number you can afford put than land up as collateral for loan and pay them the rest you owe. Family financing it to you would eliminate some capital gains you’d incur. I’d sure try to buy it. Land is great investment.

What’s the going rate for land in the area in 100 200 500 1000 acre tracts?

Good luck.

[ClayW]

Buy all of it!

[camoclad]

Either you get it or Bill Gates will. Lol

[W E H]

Either you get it or Bill Gates will. Lol

Sad to say that I thought about “what if you offered 1000 acres to gates at $6000 an acre?” As a possible scenario

[Antlers86]

Buy it

[Farmdog]

I farm, it cant pay with current conditions, rent would need to be doubled at least, even that might not work