Agricultural land ...

Discussion in 'Landlord & Rental Property Questions' started by SteakTartare, Apr 20, 2014.

  1. Leeroy_MY

    Leeroy_MY Well-Known Member

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    I think some posters here don't realize that OP wants to lease out the land instead of planting stuff himself.

    Imo, as long as the land is fertile and suitable for most conventional crops, have good access to roads (important!) and you know or have have a list of experienced farmers who might be interested in renting out your land to expand their operations, you are good to go.

    Maybe you can be creative on the terms of payment such as receiving % of profit as part of your payment or even arrange for a partnership.
     
  2. Gelsemium

    Gelsemium Senior Investor

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    I really haven't heard of that concept, the people I know that work the land do it on their own property. I don't know how it would work, but the tips Leeroy gave seem good ones.
     
  3. dianethare

    dianethare Senior Investor

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    I have a lady back in my home town who does this, totally sub-divided her acreage and is laughing all the way to the bank, problem is, nowadays she rents it out at throwaway prices, i guess she has more than enough in the bank hence the laxity, from what i have witnessed, it does give in good ROI but i suggest before diving in, do your homework, at least then you'll know how and when to wade in the waters
     
  4. LittleMissMia

    LittleMissMia Guest

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    That's very true actually. Good point !
     
  5. Silver

    Silver Active Member

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    If you want to go the agricultural route in real estate then you want to be well-versed in business practices. Something like this is for people who have more experience in business than in real estate. The real estate angle comes into play only because it has to.
     
  6. turt

    turt Guest

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    From the people I know that rent out land, it's not that great of a business. The cost of the land is huge in itself and the rent you'll get isn't great. If you have enough money, it's better just to develop it (which is why a lot of land is disappearing.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I do know that when it comes to leasing for oil and gas drilling, the actual lease payment is very small per acre - something like a couple hundred bucks a year per acre. The real payoff possibility is in the 20% royalty on oil and gas drilled if the wells produce. I would assume it must be the same way for farming leases - you probably have to get a % of the money made on the sale of the crops.
     
  8. Leeroy_MY

    Leeroy_MY Well-Known Member

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    On the oil and gas drilling - that is actually quite an interesting investment method! Any idea if the investment is open to investors from the general public? If yes, what are the legitimate platforms one can apply to?
     
  9. Thehick

    Thehick Member

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    Not a new concept. It's called share cropping. Many years ago it was called serfdom or feudalism. As others have pointed out it's low margin. But you might want to research any possible benefits from the government that pertain to using your land for the purpose of agriculture.
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I have heard of some of these small wildcatters soliciting for investors on occasion. Very risky though, even with the advances in technology in recent years. You've got to make sure such private companies selling such private placements don't screw you. Oil companies have had a rep going back 100+ years of sticking it to people. Not always, but at least on occasion. Get a lawyer to look over anything you consider doing with a private company.


    I do like a number of up-and-coming publicly traded drillers and integrated companies. I've posted up many of them in the investment forum. I've been making lots of $ off the stocks of those who are in the various shale plays going on around the country.
     

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