Buck Hollow Sporting Goods - click or touch to visit their website Midwest Habitat Company

Land Purchasing

cybball

cybball

Well-Known Member
I've never bought land, but really would like to in the next several years. Probably looking for around 40 acres that I can bowhunt, spend family time, etc.
Stupid question, but where do I start? Should I talk to a lender that does farm/land/hunting land loans? If so, who would be good to talk too?

Start socking cash away for a downpayment?

Also no clue about what is best. I think some CRP, timber, and some tillable. Would be nice to at least cover the taxes on the place.

Any advice would be great. I just started thinking that if I never take any action on this, it won't ever happen.

Cy
 
I like a good mix of timber,crp & crop.The crop gives feed and income.The crp gives cover and income while the timber gives hunting opportunities.Return income can really make the payments a little easier.
 
I would start out by figuring out how much you can (or want to) afford. You can talk to about any bank for a loan. I think it would help if you had some previous relationship with the bank. Shop around too. Banks don't all give the same rates or the same customer service. I think that having some income would be a good idea. Some tillable for food sources and income and possibly for crp. Once you know how much you can afford, start looking where you want. In central Iowa, the ground is a little more expensive, especially with tillable. Pick up the newspapers, read the flyers in gas stations, and check out the various realtor websites. Remember the list price is just what they are asking. The market price may be quite a bit lower than that. Shop around and good luck.
 
cybball said:
Where do I start?
Click to expand...

You start by asking questions.

Not sure I got the answers, probably more questions.

Stockpiling cash for a down payment is a must if you go the traditional financing route of a lending institution. You would be looking at 25% cash down, +/- 5%. With the price of land being what it is, that could be a large sum of money.

Might look for a contract buy from an owner. It is attractive to them as a realtor does not get a % of the transaction and if payments are not made, they keep the land. Plus, with payments spread out over many years, they might not face capitol gains tax ramifications.
 
Bottom line is you need liquid cash for your 25percent down. I have been saving for 6 years. Last year I had enough cash saved to buy 160 acres. This year my cash saved will buy 80 at most.
 
cybball said:
I've never bought land, but really would like to in the next several years. Probably looking for around 40 acres that I can bowhunt, spend family time, etc.
Stupid question, but where do I start? Should I talk to a lender that does farm/land/hunting land loans? If so, who would be good to talk too?

Start socking cash away for a downpayment?

Also no clue about what is best. I think some CRP, timber, and some tillable. Would be nice to at least cover the taxes on the place.

Any advice would be great. I just started thinking that if I never take any action on this, it won't ever happen.

Cy
Click to expand...

Contact Jason Smith at Dreamdirt.com He is an honest guy and will tell you exactly how to get started. Good Luck!
 
breiner11 said:
Bottom line is you need liquid cash for your 25percent down. I have been saving for 6 years. Last year I had enough cash saved to buy 160 acres. This year my cash saved will buy 80 at most.
Click to expand...

Saving for down payment is a great goal!

Another important item...look for property that cash flows. Not easy in today's market... However, look for amount $$ and then look at total income from CRP and tillable... Logging can generate money as well
 
Diggdug said:
+1 on Rich Baugh. Doing a deal with him now. He has been very helpfull and professional!
Click to expand...
Rich Baugh is a great guy, I also know Gabe Adair at Whitetail Properties is a great guy and very knowledgeable. If you talk to Gabe tell him I sent you his way.
 
Diggdug said:
+1 on Rich Baugh. Doing a deal with him now. He has been very helpfull and professional!
Click to expand...

I'll also chime in for Rich, but from a different perspective from what has been referenced so far...

The short version of this story is that related to the tough economic times, committments I had made to my wife/family and priorities and so forth, 1-1/2 years ago I thought I would have to sell my farm. That thought progressed to the point that I did list my farm for sale with Rich on Whitetail Properties for a time last year. I did not know Rich before this, but I contacted him on the recommendation from two people that I knew and trusted.

Quite unlike many experiences I have had with salesmen in the past, I truly felt like Rich cared about my situation as a friend would, not as someone who stood to gain on the sale would. I was upfront with him from the start that I really didn't want to sell my farm, but I would if we could get the right price, etc. I was also hoping for improved business conditions that would also take away the "need" to sell it too.

At all points during the time that my farm was up for sale he was a true professional AND I also felt as though he treated me as a friend too. He shared some of his hunting updates and trail cam pics and awesome harvest photos and so forth with me and he didn't have to do that. But to me the real revelation of his character came out once I was able to tell him that things had improved enough that I was going to delist the property.

He was truly happy for me and if he was disappointed in any way, he hid it from me completely. MANY agents in that position would have been put out that they had spent time/money repping a property, etc, only to not be able to sell it and would have let their frustration show in one form or another. Not only did Rich not do that, we have remained friends in the many months following the decision to delist the property.

We contact each other from time to time to swap stories, etc, and I believe that is likely to continue into the future. Assuming you are interested in land in the region that Rich operates in, SE Iowa, I would strongly encourage you to call him and meet him for lunch somewhere/sometime and lay out your questions and thoughts for him. I know you will get tremendous advice and help and most likely another friend.
 
One other tip, watch the internet, for properties that are for sale by owner (example: craigslist).

I bought a farm very reasonable in 2001 that nobody knew was for sale, found it on an obscure website. Sometimes craigslist posters try to avoid a realtor and end up pricing it either way too high...or sometimes too low.

"Buyer and Seller beware" is the old saying
 
Thanks for all the great responses. All have been helpful. I'm planning on socking away some cash for a downpayment. I'm trying to keep this in my 5 year plan. Just need to get it started. I will reach out to the contacts recommended to get some good ideas.
I live in central iowa, so would like to stick to south central if possible. I've heard a little about Craigslist. I'll check that too.

Thanks again.
 
You must log in or register to reply here.
Top Bottom