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Post by backhoeboogie on Sept 23, 2019 10:34:53 GMT -6
Hopefully it turns out great. You should be able to get a slightly better rate but the one they're quoting you isn't bad. $2500 should leave you turning decent profits. Argue for a better rate. 1/4 % will make a big difference. I had to go to a 15 year loan for optimum rates but it still pencils out. Try 25 or 20 years. Try another bank.
i've seen better rates on houses on 10 acres or less but when your talking a million+ loan on land with possibly no house i've never heard of better. 15 vs. 30 .. i'll take 30 everytime for tax purposes and affordability of payment for a higher priced place. you're not talking hundreds per month difference, you're talking thousands.
If it works, it works. Where you are now is where you put yourself. Where you are ten years from now will be based on your choices. If you are turning a profit and the cows are paying equity on the land, you are way ahead of all the naysayers who say it can't be done. The old saying goes, "they are not making any more land." I have always sold it for profit.
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Post by birddog on Sept 23, 2019 15:21:23 GMT -6
Well the other site reinstated me for the same reason they banned me ... none. I guess it was double secret probation.
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Post by highgrit on Sept 23, 2019 15:35:32 GMT -6
Personally I think it's all BS. A $850k mortgage payment for 30 years @ 4.5% = $51,681 yearly. If ALL 350 acres was exceptional land and could carry 1 cow to 2 acres yearly each cow would have to clear $295.32 just to make the land payment. Land is a great investment once it's paid for.
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Post by cowrancher75 on Sept 23, 2019 19:02:59 GMT -6
those aren't the exact numbers but i can make it work with saved $$$ down, paid cattle and equipment.
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Post by backhoeboogie on Sept 24, 2019 4:49:10 GMT -6
Personally I think it's all BS. A $850k mortgage payment for 30 years @ 4.5% = $51,681 yearly. If ALL 350 acres was exceptional land and could carry 1 cow to 2 acres yearly each cow would have to clear $295.32 just to make the land payment. Land is a great investment once it's paid for. You buy low and sell high. Flip that land for profit. Roll the capital gains into another piece of ground. Improve it, sell it. Move on. Where I messed up was not finding another place to buy this last time and paying a whole lot of capital gains taxes. What if he sells it for $500 an acre more than he paid ? What if he splits it and sells part of it and keeps the best ? When someone sells 56 acres, and buys 320 acres of better land, with the money from the 56 acres, there is no way anyone can call BS. You give them a high five. Location, location, location. |
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Post by cowrancher75 on Sept 24, 2019 5:11:54 GMT -6
nailed it.. right now i'm on farm number 4.. going to be buying number 5 here soon. cattle are very good at making an old farm look pretty good. |
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Post by backhoeboogie on Sept 24, 2019 6:13:28 GMT -6
nailed it.. right now i'm on farm number 4.. going to be buying number 5 here soon. cattle are very good at making an old farm look pretty good. We just bought 3 more rent houses. Same concept there too. Carpet over hardwood in that one old house. Carpet gone. Floors finished. Walls painted. The lady who is going to manage the rentals has someone wanting to BUY. But people get get upset when you explain it. High fives to you cowrancher. |
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Post by cowrancher75 on Sept 24, 2019 9:52:03 GMT -6
nailed it.. right now i'm on farm number 4.. going to be buying number 5 here soon. cattle are very good at making an old farm look pretty good. We just bought 3 more rent houses. Same concept there too. Carpet over hardwood in that one old house. Carpet gone. Floors finished. Walls painted. The lady who is going to manage the rentals has someone wanting to BUY. But people get get upset when you explain it. High fives to you cowrancher. thanks.. i'm actually selling all my rental properties. my favorite flooring is the vinyl sheets and laminate wood floor. stuff is great. |
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Post by chuckie on Sept 24, 2019 10:01:50 GMT -6
We have three rental houses. Now I hate rental property. People do not respect what they don't own. I am not sure what they don't understand. If you bust it up, then you fix it. If you pour grease down the drain, then you pay the plumber. Break a window, etc...... You feel you are getting a good one, and they turn out to be idiots. One even busted the bathtub. When that phone rings, then I cringe.
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Post by franklinridgefarms on Sept 24, 2019 10:22:55 GMT -6
We have three rental houses. Now I hate rental property. People do not respect what they don't own. I am not sure what they don't understand. If you bust it up, then you fix it. If you pour grease down the drain, then you pay the plumber. Break a window, etc...... You feel you are getting a good one, and they turn out to be idiots. One even busted the bathtub. When that phone rings, then I cringe. We have some rental property, and I know what you mean about cringing when the phone rings. At the moment we have some really good renters in one house. At times we have had some real pieces of work though. |
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Post by tater74 on Sept 24, 2019 11:10:52 GMT -6
We had had a rental in New Mexico for 12 years. We managed it while we were there, Have had a management company for the last 6. Well worth the 8% to hire one.
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Post by texasbred on Sept 24, 2019 11:35:38 GMT -6
Personally I think it's all BS. A $850k mortgage payment for 30 years @ 4.5% = $51,681 yearly. If ALL 350 acres was exceptional land and could carry 1 cow to 2 acres yearly each cow would have to clear $295.32 just to make the land payment. Land is a great investment once it's paid for. I you buy 350 acres of new ground you probably have to buy new cattle to stock it with. That's another 250,000. How long a term can you get a cattle loan for?? |
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Post by highgrit on Sept 24, 2019 11:47:05 GMT -6
Personally I think it's all BS. A $850k mortgage payment for 30 years @ 4.5% = $51,681 yearly. If ALL 350 acres was exceptional land and could carry 1 cow to 2 acres yearly each cow would have to clear $295.32 just to make the land payment. Land is a great investment once it's paid for. I you buy 350 acres of new ground you probably have to buy new cattle to stock it with. That's another 250,000. How long a term can you get a cattle loan for?? Guess our arithmetic doesn't add up as good as some TB. Before long they'll be guest speakers at financial siminars with Warren Buffett. |
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Post by silverback on Sept 24, 2019 15:55:57 GMT -6
It's somewhat apples and oranges. What BHB and cr75 are really speaking about is real estate expansion. Buy a piece, put some sweat equity into it, sell for a profit and expand to a bigger piece. Wash, rinse, repeat. Very effective tool for creating wealth if you understand location and can continually improve your position. Having said that, it would appear the cattle are a nice side to that and complements it well on rural ground. I think what several on here and at CT are saying is this: it is extremely difficult in today's cattle market to purchase ground (to start new or expand) have the liquid income to stock said ground with cattle, cover the costs of the land loan and cover operational costs. I believe there are some places left in the country it can be done, just not many and a person pursuing that would have to be willing to relocate to those areas. (Presuming the person has the ability to secure a loan of that magnitude and has the finacial liquidity to cover the down payment to secure the loan). One group secures their wealth primarily in real estate improvement and expansion(cattle secondary and supplemental). The other group desires to run a functional cattle operation and not as interested in real estate expansion. I do appreciate how one option can help grow and advance the other and is obviously a possible solution if one is interested in real estate sales and acquisition.
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Post by backhoeboogie on Sept 24, 2019 18:56:10 GMT -6
Silverback exactly. I was turning right at $1300 a month on the last place I was grazing. Over a 6 year span. I could not live on that. The equity built was huge.
If I could erase mistakes I made, and use 20 20 hindsight, I would be in far better position. There are many places I wish I had tied up.
I have never lost on real estate. Yet.
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