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  • #1658

    Brad Melis
    Participant
    Post count: 14

    I’m a new member of Land Academy (experienced house investor) and I have a question:
    In the training materials it recommends that we stay away from farm property is that correct? Any thoughts on this would be appreciated.

    Thanks

Viewing 4 replies - 1 through 4 (of 4 total)
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  • James Skinner
    Participant
    Post count: 14

    I am really curious about this as well. There is a lot of farmland in the area I am looking at.

    Justin
    Participant
    Post count: 25

    On Disc 4- That is not necessarily true. Again, i’m only up to disc 4.

    Aaron
    Participant
    Post count: 96
    Pro

    In my area (Illinois) there is farm land all around me. I think the reason to stay away from farm land (in this business model) is because it is income producing. Probably near 100% of people who own farm land do so because of the farm income.. not that they bought it with hopes of using the land or something, as with raw non farm land. In my area farm land prices are pretty consistent regardless of location or other attributes because someone who owns farm land is looking at the crop income. Inherited farm land is usually passed among farming families which is different than if dad died and he owns 40 acres in some other rural state. The property tax on farm land in my area is just as low (actually lower) than vacant non farm land so figure in the cash rent of the farm it more than offsets the tax amount per acre.

    I think the main takeaway is that farm land is a lot less likely to be burdensome to an owner (reason to sell cheap) than rural non income producing land.

    Brad Melis
    Participant
    Post count: 14
    Pro

    Excellent observations Aaron. That was my sense as well.

    Thanks

Viewing 4 replies - 1 through 4 (of 4 total)

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