I know there would be a lot of details that would have to be worked out, but was just wondering if anyone has thought of or would be open to going into a partnership on a small piece of land. My thought is to find someone to partner up with, buy a small piece of land 50 +/- acres. In doing this, you could get a bigger property than doing it alone, the down payment and monthly payments would be less. A few years down the road, flip it into something bigger and so on.

Any thoughts, inputs, stories, past experiences are welcome.

Thank you

funny I was thinking about this the other day id like to hear some imputs 2

Me 2 !!

Sounds like a pretty bad idea to me.

Redchey,

May I ask what makes you feel that way? Did you have a bad experience or something?

No Ive never done it and unless its with my brother or father never will.

People have way too many differing opinions and interests. Just see how many topics come up a year with issues amongst the owners of undivided interest property. Its a bad idea for most people.

i have thought about this too, i know there would be issues but sometimes its easier to speak your mind with friends than it is with family.

I have been thinking about this exact same thing. Looking at land for the last month or so and the problem with small acreages is that there is too much risk to the hunting from the actions of neighboring properties. I think you really need 200-300 acres minimum to minimize that risk and you still can't make it go away. The question is how much land and how many people could you put together who could agree on everything upfront?

ttechcolleyville,

I would love to have 200-300 acres, but really it would just come down to $$$$$ how much down payment does each person have and what can they afford as a monthly payment. I would say no more than 3 IMO. I just want to see what everyone thought, or see if I was just flat out crazy. I do like the part of keeping family or close friends out of the deal, the fastest way to ruin a friendship or break up a family is to go into "business" with them.

Then it comes down to brass tax, I find it much easier to talk to someone other than friends or family, don't want to hurt their feeling, make them made, or upset them.

I've done it once. Never again. IMO you shouldn't do it without doing divided interest.

therancher,

divided interest, please help me understand.

thank you

I see partners buy land all the time.

It just depends on how well you know your partner.

I have good friends of mine I couldn't share a pizza with.

I also have good friends I could buy a property with and not bat an eye

Partners buying land is not uncommon at all

You buy the land with a partner/ partners and that allows you to buy more for cheaper (theoretically). You agree on a split of the property and at closing the land is deeded separately to each partner as agreed.

does that keep the profit split between the partners, if there is any, when the property is sold? as opposed to a "partnership" getting the profit and having to split it themselves?

I have a cousin that did this. As for as I know, it has worked well.

Actually the land becomes separate parcels owned separately at closing so yes, at that point there is no binding partnership.

I have given this a whole lot of thought in recent weeks. I think one key is getting potential buyers on the same page up front so that any situation that arises can hopefully be addressed. For example, what if someone wants out, divorces or even dies. What if someone wants to sell their share? If you do all that upfront, everyone is looking at it from the perspective of if it happened to them or one of the others. And figuring out how to incorporate that all into some kind of an agreement so everyone is comfortable. That in itself will help you weed out people you might not have otherwise realized wouldn't be compatible.

If you split the parcels, doesn't that put the hunting on the land at risk if one of the people sells their parcel to someone who has a different use of the property in mind?

Thats no different than any other piece of land.

I realize that. But if the goal is get a larger block of land to better manage, build herd, etc,, all of that effort is for naught if one of the guys sells out to someone who wants something different. Whereas if it is one plot of land, you can better manage the risk of if and when someone might want out.

Could it be set up as a LLC, or LP with by laws that's details everything? So if one person want to get out, that's fine but they are selling out and the new buyer has to understand the rules ect.

i think anything could be written in and agreed upon.

Well I don't have much, but I can tell you that what I up in my 401K every month is a waste of my time. Would much rather be putting it in land.

As I remember hearing my great grandfather say "buy land, they ante making that sh#t anymore" and the price is going up everyday.

I don't think it would be that big of an issue and could work out very well. The key is putting everything in writing at the beginning...buy-out/death/divorce/splitting up/sell to new partner/etc. The best way would be to put it into an LLC with the partners as officers and to limit liability and also could be used for tax advantages.

To just say it is a bad idea in every circumstance is a short-sighted way to look at it. Think like a business man and look at it as a business deal...just cover all the bases. Just because people sometimes have bad experiences doesn't mean they are all bad.

BTW, my previous deer lease was exactly this way. There were 14 shareholders in the lease who all owned an equal share of the land...like 600 acres. They had a constitution/by-laws/rules, etc. Of course there were disagreements, but that is why we voted.

Smaller number of members could be much easier, especially if it's just for hunting and recreation and not as a business.