In this episode, Lucas and Bill dive into the logistics of buying your first farm, and discuss the possibilities that come with it! #hunting #agriculture #billwinke
These vids are great. A big piece not talked about is that land has appreciated much faster than salaries have climbed in relation, specifically in the last 30 years and Buffalo county is the perfect example. It is not just having the down payment, but often raw land loans are hard(er) to obtain, and rates are not as favorable and often not carried out 30 years. On that 160k loan, that payment represents ~9-1100 a month. At a 75k salary point, that is not a small portion of one’s take home pay, especially if it is just a recreational property additional to a primary residence. Getting in to the game is just significantly harder now.
agree 100% I've been seriously looking into investing into my first starter property and at this point with a mortgage as well, it looks very dim... sad to say.
Can you talk more about the timeframe prior to buying your first farm. In a market that land values appreciate ~6% per year, placing money in savings account with very little return is a hard way to keep up with the appreciating values. Each year your savings account buys a little less land. Would you recommend buying a small piece of land and rolling it as opposed to saving up? That way you are “in the game” and you participate in the appreciating market. It seems the longer you are on the sidelines, the more out of reach buying a farm becomes due to this issue
I bought 60 acres cutover hunting land in Ga. two years ago for $1,650 per acre. Less than a year after I bought, a cutover tract across the road sold for $2,500 per acre. Planning to plant long leaf pines as soon as state approves it. State will pay most of cost to plant. I will leave about 7 acres unplanted for food plots.
Flaw in your formula. You’re saving $5K per year, which allowed your $40K down payment to accrue. You can still only afford $425/mo payment. But a $160,000 loan balance on a 30 yr mortgage at 7% interest will cost you $1,300 per mo, roughly.
Great video. I'm looking to up size from my 11 acres to a more remote (and much less $/acre) 50-60 acres. Hoping to be able to sell and find a property I want in a time frame where I can do a 1031. It'll be my first time to finance land, and having looked online there is very little information on financing raw land. Thanks for sharing!
Awesome video. Any tips on how to approach a land owner if you're interested in purchasing their property when its not for sale? For example, when Bill sold his last farm he said it wasn't for sale but something came along and changed his mind and he ended up selling it. Other than the obvious fact of money because I'm sure the buyer probably paid premium dollar for Bill's farm, there must've been some other aspects as of how they approached Bill. Or, coming from the landowner's perspective, if someone were to approach you about your property, what kind of things really turn you away from them so as these kinds of things people should avoid asking or saying in this kind of scenario. Sometimes you can get lucky and opportunities happen if you just simply ask, but I'm just personally not sure how to ask properly, I don't wanna come off as rude or sound like a jerk lol.
@@melvinsacromentoe the problem with going thru a realtor is you are paying top dollar for the land and they are so few and far between. With the three methods I listed we got turned down on over 100 letters but two of them replied with an offer. We bought the one and the other one was a smokin deal. Just wasn’t in our area. Worst they can say is no.
For someone who isn't wealthy, this is really the only way to buy land now. EVERYwhere is ridiculously priced now. Even meth country Appalachia. Nice job on the initiative, and congrats!
We sell land in Arkansas with owner financing. I have a great 15 acres with a lot of deer and Turkey around it for sale. $1,500 down. That is the easiest way to get started.
Buying land doesn't work this way anymore. You need cash..and chunks of it. Especially in the Midwest. Gone are the days of cheap ground. And putting that percentage of a 75k salary into a non income generating asset is not a good way to approach it. That's going into debt. Under valued White tail ground...good luck.
If you can't afford land today wait until tomorrow. Hunting is becoming more specialized and having private land is about the only way to have decent hunting in almost any place I've been. There is a chance hunting dies quickly or the black plague knocks off half the population and your land suddenly returns to only being valued at the resources on it or the income it can produce but I wouldn't hold my breathe. Having land is an inflation hedge and an asset. Debt on a car that will lose half its value in a few years or to go on trips is bad debt. Debt that is backed up by a valuable asset is not the same. Though at the moment I can see land prices correcting 15% in some spots and landing a few recent buyers upside down.
I’m buying 10 acres for $65K in prime Indiana deer country. Off market deal. In 10 years the forester told me the timber on it will be worth $80K minimum. We are buying on 15% down ag loan. From there we’ll continue to pull money out of the asset and upgrade acreage, buy from neighbors, etc. it’s doable. When Bill was buying land for $400 an acre keep in mind average salary was $22,000 a year. Stay positive and keep looking. There are ways to monetize vacant land.
This video is nothing more than a sales ad for Highpoint. At least the first 4.5 minutes, I stopped watching after the dude on the left said "If I can't find anything I like, I might have to wait 3-4 years before something comes up, but I'll have saved more money and can buy 60 acres instead of 40!" I guess we're excluding appreciation and inflation from the equation lol.
These vids are great. A big piece not talked about is that land has appreciated much faster than salaries have climbed in relation, specifically in the last 30 years and Buffalo county is the perfect example. It is not just having the down payment, but often raw land loans are hard(er) to obtain, and rates are not as favorable and often not carried out 30 years. On that 160k loan, that payment represents ~9-1100 a month. At a 75k salary point, that is not a small portion of one’s take home pay, especially if it is just a recreational property additional to a primary residence. Getting in to the game is just significantly harder now.
agree 100% I've been seriously looking into investing into my first starter property and at this point with a mortgage as well, it looks very dim... sad to say.
Enjoying learning! 40-100 acres is the dream
Can you talk more about the timeframe prior to buying your first farm. In a market that land values appreciate ~6% per year, placing money in savings account with very little return is a hard way to keep up with the appreciating values. Each year your savings account buys a little less land. Would you recommend buying a small piece of land and rolling it as opposed to saving up? That way you are “in the game” and you participate in the appreciating market. It seems the longer you are on the sidelines, the more out of reach buying a farm becomes due to this issue
Great video Bill!! If it were easy everyone would have a 40!!
I bought 60 acres cutover hunting land in Ga. two years ago for $1,650 per acre. Less than a year after I bought, a cutover tract across the road sold for $2,500 per acre. Planning to plant long leaf pines as soon as state approves it. State will pay most of cost to plant. I will leave about 7 acres unplanted for food plots.
That is a great story, I love to hear it! Good luck in the future improving the land!
Must be nice shit most land in Nebraska is goin 5500-11000 an acres
I’m in north Georgia and it’s 10-15k an acre. It’s wild up this way
Great information guys.
I'm looking for more information I'm looking for 300 acere from
Flaw in your formula.
You’re saving $5K per year, which allowed your $40K down payment to accrue. You can still only afford $425/mo payment. But a $160,000 loan balance on a 30 yr mortgage at 7% interest will cost you $1,300 per mo, roughly.
Great video. I'm looking to up size from my 11 acres to a more remote (and much less $/acre) 50-60 acres. Hoping to be able to sell and find a property I want in a time frame where I can do a 1031. It'll be my first time to finance land, and having looked online there is very little information on financing raw land. Thanks for sharing!
Awesome video. Any tips on how to approach a land owner if you're interested in purchasing their property when its not for sale? For example, when Bill sold his last farm he said it wasn't for sale but something came along and changed his mind and he ended up selling it. Other than the obvious fact of money because I'm sure the buyer probably paid premium dollar for Bill's farm, there must've been some other aspects as of how they approached Bill. Or, coming from the landowner's perspective, if someone were to approach you about your property, what kind of things really turn you away from them so as these kinds of things people should avoid asking or saying in this kind of scenario. Sometimes you can get lucky and opportunities happen if you just simply ask, but I'm just personally not sure how to ask properly, I don't wanna come off as rude or sound like a jerk lol.
Looking forward to the next one!
I knocked on doors, sent letters, and put the word out in my local community. We got 20 acres of private heaven as a result. Efforts Paid off
I’m planning on doing this after I get out of college. Honestly planning on 100% of people telling me know but who cares atleast I tried
@@melvinsacromentoe the problem with going thru a realtor is you are paying top dollar for the land and they are so few and far between. With the three methods I listed we got turned down on over 100 letters but two of them replied with an offer. We bought the one and the other one was a smokin deal. Just wasn’t in our area. Worst they can say is no.
Wouldn't u be freaked out if u got a letter in mail from someone you have never me or know nothing about, asking for permission to hunt?!!??!🤯😳🤦🤷😂🤣
@@jonjones2013 not looking for permission to hunt but to buy. I don’t know probably would be freaky but with on x now you can look at peoples places
For someone who isn't wealthy, this is really the only way to buy land now. EVERYwhere is ridiculously priced now. Even meth country Appalachia. Nice job on the initiative, and congrats!
Interesting info 👍👍
What about borrowing against your primary residence equity to get started in buying some land? I'm late in the game and interest rates suck
We sell land in Arkansas with owner financing. I have a great 15 acres with a lot of deer and Turkey around it for sale. $1,500 down. That is the easiest way to get started.
Buying land doesn't work this way anymore. You need cash..and chunks of it. Especially in the Midwest. Gone are the days of cheap ground. And putting that percentage of a 75k salary into a non income generating asset is not a good way to approach it. That's going into debt. Under valued White tail ground...good luck.
BAD attitude!
If you can't afford land today wait until tomorrow. Hunting is becoming more specialized and having private land is about the only way to have decent hunting in almost any place I've been. There is a chance hunting dies quickly or the black plague knocks off half the population and your land suddenly returns to only being valued at the resources on it or the income it can produce but I wouldn't hold my breathe. Having land is an inflation hedge and an asset. Debt on a car that will lose half its value in a few years or to go on trips is bad debt. Debt that is backed up by a valuable asset is not the same. Though at the moment I can see land prices correcting 15% in some spots and landing a few recent buyers upside down.
Yup I agree it’s ridiculous land is stupid expensive in Nebraska
I’m buying 10 acres for $65K in prime Indiana deer country. Off market deal. In 10 years the forester told me the timber on it will be worth $80K minimum. We are buying on 15% down ag loan. From there we’ll continue to pull money out of the asset and upgrade acreage, buy from neighbors, etc. it’s doable. When Bill was buying land for $400 an acre keep in mind average salary was $22,000 a year. Stay positive and keep looking. There are ways to monetize vacant land.
This video is nothing more than a sales ad for Highpoint. At least the first 4.5 minutes, I stopped watching after the dude on the left said "If I can't find anything I like, I might have to wait 3-4 years before something comes up, but I'll have saved more money and can buy 60 acres instead of 40!" I guess we're excluding appreciation and inflation from the equation lol.
200 hundred thousand for 40 acres not a smart investment. I can purchase 400 acres for that in Wisconsin
$200k will get you 13.5 acres in TX.
@btgus. Where in Wisconsin are you talking about and what type of land. South Central WI anything with woods is 5k per. Swamp is 2 k.
5k per acre is nothing anymore. Any desireable land is even more.
Yelp
LOL Lets sum this up in a couple of words you pretty much have to be well off to buy a property these days PERIOD!
Yep this winkie guy and his realtor are so far from reality. Just consider yourself lucky you have what you have. Your financial advice is worthless.
Yes they are. I bought 183 acres. Not sure why they think so pathetically small.
None of the how to buy farm land will play. Something or someone is not wanting this info out
Ha ha 😂😂 average guy makes 75k let’s be real here lmao that’s above average I’d say average might be 45-55k a year