Land purchase

[sodfather]

Questions for you hunting land owners. Did you pay for the entire property out of pocket or a loan. I'm reading online 20,30 and maybe 50 percent down. I've been looking for about 2 years now and have been saving but just wanted to know if anyone has input before I go on. Thanks for the replies 

[nybuckboy]

If you can find land with a home 20% down. W/O a home 30% is generally the norm I have found.  Not all banks take into account nor really care about the land when making the loans.  PM me and I'll tell you who I went through.

 

 

Edited August 30, 2017 by nybuckboy

[Caveman]

Financing vacant land is going to require more down than a residential property because it is of uncertain value as security for the loan.  In my experience, the three best options are: 1) buy in cash; 2) find a seller who will take back paper; or 3) find a small, rural credit union that will offer more conventional financing for vacant land.  

[growalot]

Cash...

[BizCT]

Money
Cash
Hoes


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[corydd7]

Owner financing is available on some land. Higher interest rate but worth it if it's a couple people involved. Worked out just fine for me. 30% down no bank hassle quick and easy.

[Buckmaster7600]

Cash on one and owner financed the other "short term loan." It can be very tough getting financing on vacant land.


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[First-light]

Bought my place with a home equity loan.

[E J]

I have used a home equity loan to buy land and another option is farm credit east.

[growalot]

The thing about cash...and no realtor are the deals that can be made...let me tell you GOOD deals can be made. Even with a bank.. Our sons place went from 69+ thou to 36 because of cash ..That was with a bank selling it. The realitors had to be forced to make the offer both kept saying no that they'd never go for it. Man were they ticked..lol

2 other pieces went from 2 thou an acre to 800.00 due to cash and deals and the last went from 24 thou for 24 1/2 to 10thou thanks to cash  deals and no realtor.

[sodfather]

Seems about the same of what I found out. Anywhere from %30 to %50 down. I'm ok with 40 but may need to wait if they ask for 50. As far as buying it outright with cash I just don't have $100,000 laying around have 2 daughters and college to look forward to, I don't have Biz's money.... As far as buying a house with land that may be an option but it's usually out of my price range or it only has 15 acres or so. I'd like to step into something between 40 and up depending on the terrain an location. I'll keep looking I've waited 2 years now I can wait longer if needed 

[BizCT]

Seems about the same of what I found out. Anywhere from %30 to %50 down. I'm ok with 40 but may need to wait if they ask for 50. As far as buying it outright with cash I just don't have $100,000 laying around have 2 daughters and college to look forward to, I don't have Biz's money.... As far as buying a house with land that may be an option but it's usually out of my price range or it only has 15 acres or so. I'd like to step into something between 40 and up depending on the terrain an location. I'll keep looking I've waited 2 years now I can wait longer if needed 

Lol. I don't have money to buy land, and even if I did I wouldn't spend it on land. When my dad bought land for $50K i disagreed with the purchase. In my eyes, if you want to spend $50K on land you are better off going on 10-15 hunting trips to hunt a variety of species.


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[t_barb]

For me it was worth the piece of mind to know I had a place to hunt and was not going to lose permission (which happened at 3 different parcels in 2 years).   I was luck to find a seller willing to finance at a very reasonable rate and only 10% down.   I also was fortunate to by at a god time and the land has probably doubled in value over the past 13+ years.

[kpkot]

16 minutes ago, Biz-R-OWorld said:

 

Lol. I don't have money to buy land, and even if I did I wouldn't spend it on land. When my dad bought land for $50K i disagreed with the purchase. In my eyes, if you want to spend $50K on land you are better off going on 10-15 hunting trips to hunt a variety of species.


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I just read somewhere land generally increases in value 4-8% per year. That is a decent investment if you ask me. 

[sodfather]

Great points I feel the same way Land there not making more of it. I'm not into leasing it's like paying rent all that money and you'll never own it. I have private land I hunt now and it's great I'm the only one there. But I know he is getting up in age and it's out of my price range if he did sell 

[NYBowhunter]

14 minutes ago, Biz-R-OWorld said:

 

Lol. I don't have money to buy land, and even if I did I wouldn't spend it on land. When my dad bought land for $50K i disagreed with the purchase. In my eyes, if you want to spend $50K on land you are better off going on 10-15 hunting trips to hunt a variety of species.


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Once those 10-15 trips are over what are you left with? Mounts, a huge taxidermy bill etc....What equity do you have remaining after 10 -15 trips? To me 10-15 trips is lost equity with no return. Ive had my property for 7 years, i can flip it today and make a sizable return on my money. Heck, i was offered 30k above what i paid the day i signed my contract. Guess that guy was a couple weeks late and wanted the land bad...Like the old saying. " God aint making anymore land".  For the most part you cant go wrong with realestate i.e..vacant land, house with land etc...at the least you should be able to make your money back. For me having land is about enjoying it year round with my family, i could care less about traveling abroad to kill animals. To each their own. 

[BizCT]

I just read somewhere land generally increases in value 4-8% per year. That is a decent investment if you ask me. 

Yes, but around me the land has to be non build-able otherwise the taxes would be super high. Also, if you are financing the land then you aren't getting those returns. Whereas, you can just keep 10% easy in some vanguard funds. Or investment properties, like multifamily rentals can be a great investment where you make small profit each month and have the tenants pay your mortgage/taxes. I'm young and don't worry about any of that stuff right. I need to worry about paying off my own house first, paying for new siding and deck, etc. and I would love to retire before I'm 60.


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[BizCT]

Once those 10-15 trips are over what are you left with? Mounts, a huge taxidermy bill etc....What equity do you have remaining after 10 -15 trips? To me 10-15 trips is lost equity with no return. Ive had my property for 7 years, i can flip it today and make a sizable return on my money. Heck, i was offered 30k above what i paid the day i signed my contract. Guess that guy was a couple weeks late and wanted the land bad...Like the old saying. " God aint making anymore land".  For the most part you cant go wrong with realestate i.e..vacant land, house with land etc...at the least you should be able to make your money back. For me having land is about enjoying it year round with my family, i could care less about traveling abroad to kill animals. To each their own. 

I agree and In fact the guy who owned the land previously before my dad got paid $190K for some of the timber, so I'm sure someday he will make out fine. Everyone is different. My wife has 0 interest in going in the woods, so i personally wouldn't buy land that is only for recreational purposes and multiple hours away. But again, that's just me.

In Westchester, 1 acre of buidlable land is going to be $150K+ (not a typo).

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[sodfather]

9 minutes ago, Biz-R-OWorld said:

 

Yes, but around me the land has to be non build-able otherwise the taxes would be super high. Also, if you are financing the land then you aren't getting those returns. Whereas, you can just keep 10% easy in some vanguard funds. Or investment properties, like multifamily rentals can be a great investment where you make small profit each month and have the tenants pay your mortgage/taxes. I'm young and don't worry about any of that stuff right. I need to worry about paying off my own house first, paying for new siding and deck, etc. and I would love to retire before I'm 60.


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Only if you find the right tenants. I flipped 2 homes that needed cosmetic updates. I busted my a** getting them livable then rented them and the people treated them like a rental. Wife an I couldn't wait to sell. I made money but if you add up my man hours I broke even

[NYBowhunter]

6 minutes ago, Biz-R-OWorld said:

 

I agree and In fact the guy who owned the land previously before my dad got paid $190K for some of the timber, so I'm sure someday he will make out fine. Everyone is different. My wife has 0 interest in going in the woods, so i personally wouldn't buy land that is only for recreational purposes and multiple hours away. But again, that's just me.


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That might change one day when you start hatching out little Biz's. My wife has zero interest walking in the woods,  but my kids love it. She loves the deer meat, but wants no part of the woods, she'd rather sit on the patio with a glass of wine...lol... but she loves the fact our kids enjoy the outdoors .

[BizCT]

Only if you find the right tenants. I flipped 2 homes that needed cosmetic updates. I busted my a** getting them livable then rented them and the people treated them like a rental. Wife an I couldn't wait to sell. I made money but if you add up my man hours I broke even

Exactly. Everything has its pros and cons. My father in law has 5 multi family houses and a property manager but he's still always dealing with headaches. I have 0 interest in that stuff


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[BizCT]

That might change one day when you start hatching out little Biz's. My wife has zero interest walking in the woods,  but my kids love it. She loves the deer meat, but wants no part of the woods, she'd rather sit on the patio with a glass of wine...lol... but she loves the fact our kids enjoy the outdoors .

Definitely, but I'll just use my parents land lol. I'm not looking to incur more debt haha


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[steve863]

I am with BIz on this one.  Unless you are going to live on it or your whole family will enjoy spending time on it, purchasing land just to hunt on is a poor investment.  Most especially if you need to finance it.  Don't forget the taxes you will be paying and will never get back.  Leases I'd go for, but purchasing now way.  I had a chance to purchase some land a few years back in the Catskill region.  Sure glad I didn't.  The region now has antler restrictions in effect, plus doe permits are getting harder and harder to get there.  Would have become a big waste of time, money and energy.

[BizCT]

Anyway, not to derail the thread. Back to my original response. You want money, cash, and hoes!


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[steve863]

9 minutes ago, sodfather said:

Only if you find the right tenants. I flipped 2 homes that needed cosmetic updates. I busted my a** getting them livable then rented them and the people treated them like a rental. Wife an I couldn't wait to sell. I made money but if you add up my man hours I broke even

You might make some money with property, but without a doubt it will be a much bigger headache than most other ways one can invest their money!