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$48k per acre - iowa farm sold to football players!

Sligh1

Sligh1

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My math says $48k per acre!!!!!
They want a single digit rate of return. Wow!!!! I Personally think they just got hosed by their investment advisors but who knows. Absolutely bananas….

bleacherreport.com

Joe Burrow, Blake Griffin, Around 20 More Athletes Buy Iowa Farm for Roughly $5M

Athletes are often looking for unique ways to invest their money, and farming could be the new hot trend in 2023. Cincinnati Bengals star Joe Burrow and Boston...
bleacherreport.com bleacherreport.com
 
I agree. Terrible purchase, unless there’s some incredible development potential?

Makes no sense ?
 
I was just coming on to post this. I though it had to be a typo on the first article I saw so Googled it and multiple other outlets all say $5 million for 104 acres!!!

Dang...mine is not tillable but I'll sell it for the huge discounted rate of $10,000/acre.
 
I would like to announce that my farm is for sale...asking price...bargain basement of $45,000/acre. :)

I don't know what to make of this, but on the surface it does sound as though someone, not necessarily the players per se, just made out something fierce.

I doubt that this one transaction can be used to draw any firm conclusions about the state of Iowa farm land pricing...but...I do suspect that these cats didn't go to the bank for a loan. :) Just sayin. :)
 
2-bucks said:
I was just coming on to post this. I though it had to be a typo on the first article I saw so Googled it and multiple other outlets all say $5 million for 104 acres!!!

Dang...mine is not tillable but I'll sell it for the huge discounted rate of $10,000/acre.
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If I sell mine for $45K/acre I would be interested in talking to you about your "bargain". :) :)
 
If I had the money that these Sunday entertainers had I do the same if I wanted it! I’m sure they won’t miss the dollars they spent
 
48k per acre and they think they are going to get a 1-9% return by leasing it out to be farmed? Either there is some sort of typo or misinformation or those players advisors or whoever just screwed them and they clearly did no research themselves. Just 1% return is $480/acre. 5% would be $2400/acre. 9% is $4320/acre. Maybe its some sort of super soil that will get astronomical yields. No farmer is going to lease that from them for what they are wanting.
 
I mean what are we missing !!! They cant be that lost !! Has to be a bigger play ?
 
deadeye said:
I took it as 5 million in investments as a group total not necessarily for the mentioned 104 acres only, but hard to say.
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48EB0BBC-1190-4F32-A4C6-845D31AC7E31.jpeg

This part of article seems a bit clearer. I do think they paid $48k/acre for 104 acres totaling $5m.
Let’s keep in mind…. Anyone on here can go buy the best of the best around the state for $20k an acre. All day every day. (Yes, there’s the rare sales where neighbors fight like last one that went for $30k but that’s a fluke). $20k gets u premium top shelf amazing soil. I know some 90’s csr well drained dirt that just brought in the teens…. They literally paid 3x that value. They paid way more than double what top shelf ground is bringing. There’s either “more to story” (like oil or gold in the dirt) but I don’t see it. On its face, this is a group of guys that got RIPPED OFF! What better group to target than millionaire ball players?!?!?
Even if development is part of equation…. Zoned agricultural…. $48k is obscene & way more than any farm that could someday could be developed out in Dallas co here which is hottest development market in state. But even in article- they are buying it to lease it to farmers!!! Crazy!!!!

This is equivalent of these guys paying $15k an acre for a hunting farm. Or buying the Dow Jones stock index for $85,000. Buying a new diesel truck for $200k. It makes no sense. IMO- on its face- these realtors & investment advisors saw a group of young wealthy guys who don’t know the land market and did one heck of a sales pitch. These guys might not care right now as they are making gazillions. But on its face- they got ripped off bad!!!!!!!
 
Who says you can’t blow $100M. These guys certainly try sometimes.

I hope for their sake there is more to the story and a true return on investment in there somewhere
 
A couple of the articles I’ve read infer that the group will be buying more ag farms in the future and it doesn’t necessarily matter where. I’m not condoning or justifying but if they are looking at a long term investment and taking into account long term land appreciation it may not be as bad as we all see it. After all Bill Gates is buying productive farm ground for some reason……
 
I don’t think Joe Burrow would be that dumb! If I remember correctly he lived in Ames, Iowa for awhile when his dad was coaching at Iowa State .
 
Muskrat24 said:
A couple of the articles I’ve read infer that the group will be buying more ag farms in the future and it doesn’t necessarily matter where. I’m not condoning or justifying but if they are looking at a long term investment and taking into account long term land appreciation it may not be as bad as we all see it. After all Bill Gates is buying productive farm ground for some reason……
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Even if we assume that they are in it for the long haul, it is not economically wise to pay so far above market...unless that land has oil on it, etc, they paid double'ish what they could buy similar land elsewhere.

So either there is more going on here than we know OR they are geniuses OR...wait for it...their "advisors" just cut a fat hog somehow. (Of course there are more options than those, but I feel like these are the most likely categories.)

I sense that it is more the latter. If we find out that "the middleman", aka, the advisor(s), made out here I would not be surprised. Shoot...I would be glad to "advise" them and get them another 100 acres...I know I could do it for something quite a bit less than $48K/acre. :) :)
 
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