Why Everyone Should Buy LAND | Bill Winke
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- čas přidán 21. 11. 2022
- This High Point Land Series video is about the subject of land as an investment and why everyone should buy land. Together, two seasoned land owners Nick Hopp and Bill Winke disclose their thoughts on buying land and offer insightful tips on getting into the land game.
#landsales #investment #land
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One of the first pieces of land I bought I was complaining about the price I had to pay to a wise old gentleman. He said “Don’t worry about it, time will take care of it”. Boy, was he right.
I've been buying and selling for 20 years. My best deal netted $300k and just this year I sold a farm that cleared me $170k. I currently have just over 200 acres. Not big, but I'm heading the right direction. Nice chat guys. Great advice!
In February 2021 I purchased 10 acres in recreational land in Illinois. I cleared a 1/4 acre foodplot just inside the western edge,and a 1/2 acre on the SW corner with a 6-8 ft plant screening on the outside edge from the roadway (a secuded plot). I hunted that season. I experienced some whiskey tango farmers in the neighborhood that dog hunted quail around the edge of my my property on a SxS 3x's during that deer season. Living 1100 miles away I decided to sell it rather than deal with them. I sold after 8 months of ownership and I made a 20K profit on the sale. Huge win!!!
Then the game, JD, is to find a replacement at a good value and keep doing it until you eventually have your dream farm. That's how it is done. No, you won't just show up day one and buy a big farm. Almost no one can do that, but you can buy small and grow it over time.
That was mostly due to luck of the timing.
It’s the best investment. If I can do it as a low level local government employee anyone can. My net worth has soared since taking the leap. I bought 170 acres in 2020 and 13 in October. Whether you think you can or you think you can’t you’re probably right.
I bought land in 2017 and have not regretted it at all, even if I have to do without some fancy things
The way I look at it is this. I used to spend 5 grand a year for my share of a lease. Now that I own land, every year I am shaving 5 grand off the original cost. So in 10 years I would consider the land free and clear so if I got less for it when I sold, so be it, if it’s the same, great, if it’s more, even better. I get to use it, do what I want with it and unlike a lease or guided trip I am not just blowing my money.
The problem with land is neighbors. Good, bad, or indifferent, at some point in time they will be a problem no matter how many acres you have, the problem is the borders.
Great video! I started buying in land in 1975 and I have never regretted it!
Interesting info, thanks for sharing 👍👍
This is very true and maybe 5-10 years ago it could have been a reality for an average person. However, in recent years land has become so out of reach with the price per acre being 4k an acre on the low end it's just not an option. I was fortunate enough to purchase my farm when land was going for about 2700 an acre but in a matter of 3 years it went to 4k. I really like watching you guys and have been watching bill for decades now, but average joe just can't afford these prices.
You just have to buy less. Maybe someone can't afford 40 acres, but can they afford 20? You start small and work up from there over a lifetime.
There’s 17 acres behind my house that is going for $80,000 which is just shrubs strip mine and butts right up to the interstate really no good trees on it ! Usually takes money to make money and the average guy that works 9 to 5 with kids , bills gas prices etc. it’s just not possible!
I gather this a perspective and opinions from land sales folks. Reality is the secret is no longer a secret on land investment and the ones with the biggest capital wins. This is harsh reality and blue collar America has been driven out of the game for the most part. One just has to look up a few tracts on onX and you will see the investment folks getting in the game big. Unless something changes, the blue collar family guy looking for a small piece will be shut out by the big players. It truly is becoming the rich getting richer no matter how you slice it.
Is it still a possibility to get in as a small player on a 20 and build up? Yes, but good luck finding those tracts. All I’m saying is the odds are so stacked against working family folks getting in the land game most won’t be able…especially in this economy.
Land will always be more than you can afford... eventually you figure that out and just make it work. Start a little smaller than you want to get your foot in the door.
Tom not really, read my comment I posted
Don't know if you listen to country music, but Jordon Davis is got it right - "Buy Dirt."
Another thing most people don’t have that chunk of change laying around for a down payment that you need upfront before you even get the loan for the land!
If you haven’t got a big down payment look for owner financing. The first piece of land I bought the owner financed it 100%. I had gone around to a bunch of real estate agents asking them to find me some land with owner financing. About six months later this lady broker called me with a listing of 97.44 acres the owner was willing to finance 100%. I jumped on it. It was bigger than I could afford and I had no clue how I was going to make the payments but I managed them long enough to sell it at a good profit. I’m not going to lie, there were some nights of clawing the sheets wondering how I was going to make the next payment but as they say, no pain, no gain. Or as my father would say, if you’re not a little uncomfortable, you’re not taking enough risks.
I would like to hear Bill's thoughts about tax liability and how that plays into land as an investment.
I've been looking at land for the past week! 2.49 acres for 25k...... really thought about it but I need more acreage...
Maybe start by looking somewhere else, farther from a city, perhaps?
What are the common uses of "recreational land" in your opinion, and as it relates to this video? Thanks for the solid video!
I live in California and want to buy acreage in the Arkansas area for a lifetime investment. Its going to be a long time before I retire and move out there. How can I make money off the property being located so remotely? Not looking to get rich off of it but have it pay for itself, maybe $10K/ Year per 5 Acre lot.
Great video.
Yep, oil and gas greed had pushed prices way high. Plus its almost impossible to get mineral rights with anything anymore.
Sold me. Too bad it’s so ridiculously expensive since Covid
I gave up this week trying to find a piece when 39 acres which of half of it was water sold for 360k. I am done wasting my time
If you are serious, you need to look somewhere else. Land is nowhere near that expensive in most areas (other than tillable). Good luck.
Get out of Dodge. Literally.
@@derekmuche8927 if you know you know lol
@@derekmuche8927 I seem to find you in solid places
I want my own piece so bad. Any tips on how to buy and use land to help off set costs ? Wanted to use some of my 401k to buy a pc , but wont let me touch it.
Convert 401k to self directed IRA then buy it
I am a little late to this video, but really enjoyed it. I own land in my home state but was looking to buy some land in a state about 7 to 9 hours away. Any suggestions on pitfalls I should avoid? Anyone have suggestions on rec land loans? My goal would be able to pay it off in a few years. But finding out land loan info seems to be tough and not able to get a straight answer.
Not sure what state you are in but here in Mississippi there is a company called Southern AgCredit. I've used them and really like them. They will finance 10 years on a $50k property, 20 years on a $100k property, and 30 years on anything over $100k. Is that the type of information you are wanting to know?
Forgot to mention they require 20% down as well.
That is the type of info I was looking for. I figured the 20% down but wasn’t sure on rates and terms that were out there for rec land. I appreciate the info.
No problem. For my 20 year loan, they offered different length fixed interest terms. The interest rate got higher for the longer you want to keep it fixed. I am conservative so I chose a fixed rate for the first 15 years. Then I'll get a new rate for the last 5 years of the loan. They wouldn't do fixed for the whole 20 years. Good luck in your journey!
Can't afford it.
That the only time you could afford land was back in 75
Just buy less. Getting into the game is main thing.
I loved the video. You harped on the control you have over a land investment’s performance, as opposed to traditional stocks and bonds. Do you not think a landowners is actually helpless to a number of outside factors like drastic tax increases, wildlife agency policy changes, game disease? Are these of zero concern to the educated investor?
They aren't zero concern, but as the old saying goes, "Better the devil you know than the one you don't." What bad things can happen to a passive investment that you have no control over and don't even really understand? At least with land you can keep your eyes on the variables that effect value (because you understand them) and take action as needed.
Buying land is mainly speculation and that is never a good investment. People get lucky, yes. My dad bought 10 acres 11 years ago for 75k. Half woods, half overgrown pasture. He put a pond in the back and planted pine trees and his intent was to build on it one day which I don’t think will happen. That land is worth about 80-90k maybe more to the right person… that’s TERRIBLE. Not to mention the tax liability every year. Had that money been invested in the market 11 years ago it would be worth about 183k (including extra contributions that would have gone to the tax bill) at an average return of 8%. After 20 years when he wants to retire it would have been worth $418k. Maybe partial farm land is a better choice but unless you get lucky the average market return over long term is always better.
Agreed, to a point. But I also lost a huge lump (for me) in the stock market once taking advice from an expert. I decided right then I would never invest in anything I didn't understand again. I sleep much better with land than with stocks. Also, my long-term average has been between 7 and 8% appreciation on land I have owned. The shorter you own it, generally, the higher the return because you are making money on more of the bank's money. Once you start to pay it off and the money is mostly yours, the overall return drops gradually. I bet if you put it up for sale, your dad's land is worth a lot more than you think. Good luck.
Historically land and stocks appreciate over the long term at almost precisely the same rate 7-8%. Can you buy a bad piece of land or get unlucky and have something undesirable built next to a piece of land that depreciates it, yes you can, but you can buy stocks that go to zero. Land never goes to zero.
@@wasidanatsali6374 yeah but that’s why you diversify with stocks and buy index funds. Land is speculative for the most part with some variables
@@drewwhelan6695 Why not diversify and buy land and stocks? I don’t know enough about the stock market to be a day trader so I buy blue chips and sit on them. But I’ve got a great eye for land. I’ve made way more profit investing in land. My great grandpa was a land baron. Unfortunately for me his five children pissed away everything he managed to accumulate in the legal battle over his estate as he predicted they would. But he taught me a lot about investing in land. He use to tell me buy the very best piece land you can afford because cheap land appreciates cheaply. I reckon it comes down to what you know the most about and where you feel comfortable putting your money.
Couldn't disagree with you more. Find me one person that has ever lost on a reasonable land deal.
Don’t know who y’all are talking to. I suppose if you’re making six or seven figures, you could buy enough land to hunt on. Average person, NOT TODAY. GET REAL.
I'm an average person, making average money... start small, flip and and grow. Up to 101 acres now and still looking for more
Land wealth isn't for everyone. Stay in your comfort zone.
I agree but here comes the major opportunity lotta guys r over leveraged but theres corp monopoly owners with bank leverage everywhere (created in iowa by the 80s farm crisis imo) and lots of cash to buy more.. so who knows if the ave guy will ever get a chance now without leveraging his home or other small assets just to get in decent? We will see / if a guy could make lotta money in this crazy economy it’s no problem but we r dealing with a hamster wheel in small business atm inflation is so insane if we do get deflation itll be a good time for guys to get in like the guys did in the 80s.