Saving to purchase land

[Reaper]

I’m 35, My wife and I own three separate properties. One is paid off and the two others will be paid off when I’m 40. We’ll double our money on two and might triple our money on the third. When it’s time, our goal is to sell all three and buy a ranch. We bought them cheap, fixed the homes up and we now rent (airb&b) them out. We’ve never paid the house note in Galveston from our paychecks. We both work full time at our jobs. IMO buy property, keep buying and selling real estate until you reach your goal. I was 25 when I started buying property, it’s fun, pays very well if you’re careful on how you spend. Good luck!

This. all. day. long.

Doesn't matter what happens in markets, people will always need a place to live.

[6.5 shooter]

I’m no expert by no means, so take this with a grain of salt. I would thing you have to pay a mutual fund back or face a huge tax on using the money. Just save save save.

[jds247]

As fast as land is going up you wont come out ahead waiting to pay cash.. against everyone's advice I bought 200 acres 11 years ago. I ran a few cows to take someone of the sting out of the note.. I have a contract on the place now for almost double what I paid for it.. my plan is to buy a couple rent houses and put a little down on a place in rocksprings.

[Razrbk89]

Land does not always go up.... Lots of folks are overpaying big time (IMO). If/when something happens to the economy, a lot of these recreational buyers will be up a creek.

[6.5 shooter]

Land does not always go up.... Lots of folks are overpaying big time (IMO). If/when something happens to the economy, a lot of these recreational buyers will be up a creek.

Land isn’t ever going to go down, the market may go soft at times but it will never be the price of 5, 10, or 15 years ago. They stopped making it a long time a go.

[Muygrande]

Buy a rent house as soon as you can swing it. Refinance the rent house to get the down payment for the land when the time comes.

This is pretty solid advice. I wish I had done this when I was 25 except using the equity in your first rent house to buy more. When you get ready to sell them you just might have enough to pay cash for a place. A lot of work but I have seen guys do it.

Also, work like hell at your career to make more money but commit to living off your current salary no matter what. Also make sure any current or future wives are on the same page.

[AgTag23]

Thanks for the advice thus far. Target "decent size" meaning 75-300 acres used for general purposes. Recreation, hunting, etc. Not so sure yet on location, but somewhere near or inside the I-35,45 and 10 triangle

[HoustonHunter94]

Buy a rent house as soon as you can swing it. Refinance the rent house to get the down payment for the land when the time comes.

Actually doing this now. Wish I would have done it sooner.


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[TeamAmerica]

Lot of good ideas on here. Don't be afraid to use some leverage (always non-recourse). Otherwise you may be near death by the time you can pay cash for it.

Get into an industry where you can grow you salary. In 15 years, can you be at triple your current salary? It is hard to grow your income and buy a piece of land on a teacher's salary getting 1.5% raises each year. Even if you can afford the mortgage, you will need some money/income to enjoy it (trust me from experience).

You will also have likely have some life changing events in there (spouse, kids, etc.) so be willing to adapt and change your strategy.

[Darton]

As fast as land is going up you wont come out ahead waiting to pay cash.. against everyone's advice I bought 200 acres 11 years ago. I ran a few cows to take someone of the sting out of the note.. I have a contract on the place now for almost double what I paid for it.. my plan is to buy a couple rent houses and put a little down on a place in rocksprings.

Agreed, you will never come out ahead saving to buy a place. During the time the interest rates and land values will out pace you. Buy as soon and as young as you can. The only saving you need to do is for the down payment and then pull the trigger

[M16]

I started buying land when I was 20 years old. My first purchase was 7.5 acres. I've been buying, selling, and swapping ever since. Eventually wound up with a couple thousand acres.
Here's a couple of tips:

Buy what you can afford now. The longer you save the higher the land will usually get. Land inflation will eat your savings lunch.

Make some money when you buy the land. There is always land for sale at below market value. But you're probably not gonna find it at the local realtor. They usually buy it themselves or have a group of investors that will buy it. Put the word out with everyone you know that you are looking to buy. In other words Network!

If you find a great deal and can't swing it bring in a partner. Larger properties are usually cheaper to buy. Learn how to put a package together to make a deal happen.

Find a motivated seller. Remember the 4 D's of real estate and use them to your advantage.Downsizing, Death, Divorce and Debt. Ask for everything when you buy including minerals. You may not get any of it but dang sure won't if you don't ask. As an old man once told me. Every dollar you talk for is one less you have to work for.

Let the seller set the asking price. He who speaks first loses. I've seen times when the offer price would have been more than the asking price.

[Homer75]

I’m 35, My wife and I own three separate properties. One is paid off and the two others will be paid off when I’m 40. We’ll double our money on two and might triple our money on the third. When it’s time, our goal is to sell all three and buy a ranch. We bought them cheap, fixed the homes up and we now rent (airb&b) them out. We’ve never paid the house note in Galveston from our paychecks. We both work full time at our jobs. IMO buy property, keep buying and selling real estate until you reach your goal. I was 25 when I started buying property, it’s fun, pays very well if you’re careful on how you spend. Good luck!

This right here!!!!

[TxDispatcher]

Marry a rich woman (or man)
Become an oil tycoon
Invent the cure for cancer
Learn to understand women, and write a book about it
Win the lotto
Win “who wants to be a millionaire”

That’s all I got.

All solid plans.

The bold highlighted one isn't gonna make you any money. Even if you actually SUCCEED in learning how to understand them, there isn't another man alive who will believe you and buy your book

[TSE]

Another data point...
I bought in the Blanco area 16 years ago. I found the place by driving and chatting. There is more information available online now, but as has been said before me, you'll find the deals by doing the legwork instead of the mouse work.

When I bought my little 20 acre piece, I put down 20 percent and got a loan for the balance. At the time, a 20 year land loan was going for 6.5 percent. I bought it for around 2/3 market rate. Then when I factor making payments for 10 years until having the cash available to pay off the note in that 10th year, I paid around 50K in interest to the bank overall. Looking back, that hurts a little to admit, but since I found a deal on the land originally (that would now easily cost 3x the price), it takes the sting out. If I had waited, I would be worse off for it in value.

To make the math easy, what I bought then for 100K would now be 300K minimum. I make more now so in that regard it would still be more "doable" now, but it's paid for. The pain is behind me and I have more cashflow for other endeavors now.

[Matt_g]

I started buying land when I was 20 years old. My first purchase was 7.5 acres. I've been buying, selling, and swapping ever since. Eventually wound up with a couple thousand acres.
Here's a couple of tips:

Buy what you can afford now. The longer you save the higher the land will usually get. Land inflation will eat your savings lunch.

Make some money when you buy the land. There is always land for sale at below market value. But you're probably not gonna find it at the local realtor. They usually buy it themselves or have a group of investors that will buy it. Put the word out with everyone you know that you are looking to buy. In other words Network!

If you find a great deal and can't swing it bring in a partner. Larger properties are usually cheaper to buy. Learn how to put a package together to make a deal happen.

Find a motivated seller. Remember the 4 D's of real estate and use them to your advantage.Downsizing, Death, Divorce and Debt. Ask for everything when you buy including minerals. You may not get any of it but dang sure won't if you don't ask. As an old man once told me. Every dollar you talk for is one less you have to work for.

Let the seller set the asking price. He who speaks first loses. I've seen times when the offer price would have been more than the asking price.

This is awesome. Thanks for the incredible amount of wisdom here, sir.