Buying a farm

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Brute 23
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Re: Buying a farm

Post by Brute 23 » Fri Feb 28, 2020 11:52 am

This reminds me of some thing I debated early on and still do right now.

In my early 20s I could have dove off in to a couple hundred thousand dollar loan for some land to feed my want. I would have run tight and worked my butt in the dirt, but I could have made it work.

Many of my close friends/ mentors encouraged me to invest that money in the stock market, live comfortably, debt free, enjoy other things like hunting, fishing, golf and to start leasing land, acquiring equipment, and cattle as I go and to save for a rainy day. One always said to have a healthy "take this job and shove it" account. Then one day I could comfortably buy the property I have always wanted. They said you never know what life will throw at you and you will never regret that security of cash in the bank and no debt.

I'm 33 now and the company I worked for since I was 20 got in financial trouble and started making bad decisions, including burning long time employees. Luckily I listed to the wisdom of my council. Rather than being saddled with a huge loan and having stay a slave in that toxic environment to make a land payment or chase another miserable job for the money I'm able to sit back and enjoy this time with my family and work with some good friends doing what I enjoy while I figure out what the next chapter will be.

I'm not trying to talk you out of the purchase, just sharing some of my experience like my friends shared theirs with me.


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littletom
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Re: Buying a farm

Post by littletom » Wed Mar 04, 2020 9:02 pm

Buy the farm, if you can make it work. Will make a nice nest egg when if you sell it some day if you choose. I have a biased opinion I have bought a couple farms through fsa. No prepay off penalty i did one in 3 years. Its a great deal. If everything was about money. I sure would not have wasted a day in college. In my early 20's i did not have the nerve to bite off 200 acres. I wish I would have. It will cause you alot of stress, been there. I think your on the right track with 70 acres.

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Cress27
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Re: Buying a farm

Post by Cress27 » Tue Mar 17, 2020 8:07 pm

Well the deal fell through. We went to write up the contract and he try to pull on over on me he wasn’t going to allow me to take possession of the farm until January of 2021 and I was going to be left holding the bag. Oh well there will be more for sale soon just got to wait on the right one

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Re: Buying a farm

Post by Beefeater » Wed Mar 18, 2020 7:45 pm

Cress27 wrote:
Tue Mar 17, 2020 8:07 pm
Well the deal fell through. We went to write up the contract and he try to pull on over on me he wasn’t going to allow me to take possession of the farm until January of 2021 and I was going to be left holding the bag. Oh well there will be more for sale soon just got to wait on the right one
Did you get pre-approved up to the amount you needed already? I wouldn’t let several months kill a good deal. Might give some leverage to negotiate a bit - lower price, rent back, etc.. guessing there might be some tax reasons involved on sellers end that could be negotiated out.

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Re: Buying a farm

Post by Cress27 » Thu Mar 19, 2020 10:21 pm

Beefeater wrote:
Wed Mar 18, 2020 7:45 pm
Cress27 wrote:
Tue Mar 17, 2020 8:07 pm
Well the deal fell through. We went to write up the contract and he try to pull on over on me he wasn’t going to allow me to take possession of the farm until January of 2021 and I was going to be left holding the bag. Oh well there will be more for sale soon just got to wait on the right one
Well it wouldn’t have been to bad if the farm was set up the way I’d like it he has cropped the land and was wanting to crop it agin this year and I was going to have to wait until he got his crops off for me to do anything with it and I with what I’m wanting to do with having to sow alfalfa seed and grass seed back where he had cropped I would be set back a year or actually a little longer because it’s to early to put alfalfa out now. So I’d been left holding the bag for atleast a year. Just didn’t feel right so I decided to look else where.
Did you get pre-approved up to the amount you needed already? I wouldn’t let several months kill a good deal. Might give some leverage to negotiate a bit - lower price, rent back, etc.. guessing there might be some tax reasons involved on sellers end that could be negotiated out.

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Re: Buying a farm

Post by kilroy60 » Sun Mar 22, 2020 11:32 am

Cress27 wrote:
Tue Mar 17, 2020 8:07 pm
Well the deal fell through. We went to write up the contract and he try to pull on over on me he wasn’t going to allow me to take possession of the farm until January of 2021 and I was going to be left holding the bag. Oh well there will be more for sale soon just got to wait on the right one
Consider yourself lucky. Going over your numbers and all your facts, I think you'd have a hard time making this work. Start a little smaller and make sure with all that's going on that you can make those payments and still live comfortably.

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