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#952687 - 10/09/09 07:49 AM question about buying land...
Hunter_Man Offline
Veteran Tracker

Registered: 11/08/06
Posts: 2599
Loc: San Angelo, TX
Next year possibly, I may be looking to buy my first piece of land. I have a few questions that i was wondering if someone on here can help me with.

1. is the overall process similar to buying a house?
2. i have EXCELLENT credit, but have heard that securing loans for land are much harder. is this true? what can i expect for a good interest rate?
3. does the land have to be insured, if there are no structures on it? i mean, like monthly insurance?
4. any other info on the process would be great!


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#952714 - 10/09/09 08:02 AM Re: question about buying land... [Re: Hunter_Man]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
Harder than buying a house. A down payment of about 20% is normal, and the loan is usually only for 10 years. I went through the Texas Veterans Land Board, and they require 5% down and 30 year loan. But every bank I tried was 20% and 10 years.

Insurance is not required that I am aware of, but is cheap and I think necessary.

_________________________


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#952737 - 10/09/09 08:16 AM Re: question about buying land... [Re: helomech]
Hunter_Man Offline
Veteran Tracker

Registered: 11/08/06
Posts: 2599
Loc: San Angelo, TX
i figured the texas vet's land board would be my best bet. i was unaware of the 10 year land loan at most places... thanks for that info.

if you don't mind me asking, what was your interest rate? on the land board website, it shows over 7%. that seems way high to me.


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#952747 - 10/09/09 08:19 AM Re: question about buying land... [Re: Hunter_Man]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
Yeah, 7%. It sucks, but what else are you going to do. I could not afford the 10 year option. The 20% was no big deal, but the 10 years was not enough. The banks did not beat the 7% by much, you will not get a great interest rate on land. My credit score is over 800 and that is the best I could do.

_________________________


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#952781 - 10/09/09 08:35 AM Re: question about buying land... [Re: helomech]
Hunter_Man Offline
Veteran Tracker

Registered: 11/08/06
Posts: 2599
Loc: San Angelo, TX
yeah, i guess that's not bad.

after further reading though, i see that they will only finance up to 80k. that kinda sucks. i found a nice piece of property like 10 miles from my house for 155k. 85 acres. electric, water, already on site. but now it's out of my reach...darnit!


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#952786 - 10/09/09 08:37 AM Re: question about buying land... [Re: helomech]
gary75758 Offline
Tracker

Registered: 11/20/06
Posts: 950
Loc: Chandler/Kosse
You might check with Texas Land Bank....I got my loan thru them...like Helo said interest rates are poor at best. One good thing about them is they have dividens that they pay each year back to stockholders, my payment last year was over $1700, in addition they hold some interest money on account and after 5 years either pay it to you or apply it to principal....long story short, I they pay back dropped interest rate about 1.5%...good luck texas


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#952971 - 10/09/09 09:53 AM Re: question about buying land... [Re: gary75758]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
Through Texas Land Bank you can get a 20% down with 25 years. Going rate is about 7% to 7.5%.

_________________________
If you can't lick your own, you can't sit on the dog stand!

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#953093 - 10/09/09 10:51 AM Re: question about buying land... [Re: No-Tox]
dr730 Offline
Bird Dog

Registered: 12/06/05
Posts: 460
Loc: Keller,TX
great thread for all of us potential land buyers. Keep the good info coming guys! Are there any other unforseen costs that a new landowner should be aware of? I hope to purchase a small piece of land within the next year or two.

_________________________
Founder,Texasgundogclub.com

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#953142 - 10/09/09 11:23 AM Re: question about buying land... [Re: dr730]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
Taxes, try to get some kind of exemption. I have the veterans exemption, homestead, and pine exemption.

_________________________


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#953153 - 10/09/09 11:32 AM Re: question about buying land... [Re: helomech]
txhunter24 Offline
THF Trophy Hunter

Registered: 09/25/08
Posts: 7537
Loc: Runnels County
How much of a tax brake does an ag exemption actually get you?

_________________________

Every good and perfect gift is from above . James 1:17

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#953157 - 10/09/09 11:34 AM Re: question about buying land... [Re: txhunter24]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
All my exemptions lower my taxable value from 1100 an acre to 100 an acre.

_________________________


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#953173 - 10/09/09 11:46 AM Re: question about buying land... [Re: helomech]
txhunter24 Offline
THF Trophy Hunter

Registered: 09/25/08
Posts: 7537
Loc: Runnels County
That is great to know. Thanks Helo. I am hoping to purchase a place in the woods next year sometime.

_________________________

Every good and perfect gift is from above . James 1:17

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#953180 - 10/09/09 11:48 AM Re: question about buying land... [Re: txhunter24]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
Your welcome, I am sure there are folks on here that know a lot more about this than me. I only know what I have run across.

_________________________


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#953358 - 10/09/09 01:09 PM Re: question about buying land... [Re: txhunter24]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
Originally Posted By: txhunter24
How much of a tax brake does an ag exemption actually get you?


TONS! The place I hunt on now is about 300 acres and the taxes are $350 a year. If it is not in AG exempt or some other exempt status currently the process can take up to 3 years to establish the exemption. So it is critical to look at that when purchasing a property.
Other things are electric and water. Just because they are right on the road by your place doesn't mean it will be cheap or that you can tap into it. I know of a place that has electric by the road and it will cost a bit to get it to extend to where it is needed and there is water lines on the road. The kicker is that the water lines are loaded so until they upgrade the system no one else can tie into them. So that means a well if you want water. It's the little things like that will spike your costs once you buy if you don't do your homework.

_________________________
If you can't lick your own, you can't sit on the dog stand!

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#953583 - 10/09/09 03:15 PM Re: question about buying land... [Re: No-Tox]
Koolade Offline
Bird Dog

Registered: 10/08/08
Posts: 404
Loc: Stamford, TX
Hunter_Man.....If you are in San Angelo, you need to check out Crockett National Bank. They do quite a bit of financing for people we sell land to (big and small tracts).

_________________________

www.ekdahlrealestate.net

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#953641 - 10/09/09 03:42 PM Re: question about buying land... [Re: Koolade]
rsquared Offline

Veteran Tracker

Registered: 01/15/09
Posts: 3199
Loc: Round Rock, ranch in Junction
capital farm credit is who i used.
20% down with a 20 yr note.

rates will be higher than with a home loan since they are not tied to the same things on the back end. (how the banks borrow)

Capital Farm Credit does the dividend thing too.

you will want to think about things like tanks if it does not have one too.

we are on wildlife exemption (a form of ag exemption that does not require livestock) my taxes are just over $1 an acre.

_________________________
Stuff my dad said in the deer blind

"I can dive deeper and come up drier"
"did you do that?"

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#953871 - 10/09/09 05:50 PM Re: question about buying land... [Re: Hunter_Man]
Txduckman Offline
THF Celebrity

Registered: 08/30/04
Posts: 10618
Loc: Big D
Check with an appraiser first on the place you are looking at. Bank is going to go by what they think it is worth in many cases. I sent a place near where I hunt to an appraiser and he came in at 70% of the list value due to no improvements and other sales which can be hard to come by now. Said the bank would not do a loan for it unless you only took a loan out for 80% of the appraisal meaning your down payment would be giant. Maybe that is why it has been for sale for 3 years.


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#954919 - 10/10/09 05:57 PM Re: question about buying land... [Re: Txduckman]
JonnyRay Offline
Tracker

Registered: 07/09/08
Posts: 619
Loc: Denton Tx
This is a great thread


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#955004 - 10/10/09 07:23 PM Re: question about buying land... [Re: txhunter24]
fishhound Offline
Tracker

Registered: 10/20/08
Posts: 675
Loc: San Antonio area
I'm surprised at the number or people that don't know about the wildlife exemption. It gets you pretty much the same tax break as the ag exemption.

Almost any property that you somewhat manage will qualify. Ask your appraisal district about it.

Basically you have to do 3 of 7 management practices. Supplying suplemental food sorces, Supplying water and taking game surveys should do the trick.

I've seen some people add this exemption to their prperty when they get tired of messing with cattle to keep their ag exemption.


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#955072 - 10/10/09 08:18 PM Re: question about buying land... [Re: fishhound]
rsquared Offline

Veteran Tracker

Registered: 01/15/09
Posts: 3199
Loc: Round Rock, ranch in Junction
and it satisfies all the habitat managment needs for an MLD permit program if you choose to try MLD

_________________________
Stuff my dad said in the deer blind

"I can dive deeper and come up drier"
"did you do that?"

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#955141 - 10/10/09 08:51 PM Re: question about buying land... [Re: rsquared]
Brother in-law Online   content
THF Celebrity

Registered: 07/08/07
Posts: 20271
I don't have land but have run into this in the past.
Easement's or possible easments
Windmills, mineral rights, etc
Is your neighbor going to fence you out


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#956741 - 10/11/09 09:19 PM Re: question about buying land... [Re: rsquared]
junfan68 Offline
Tracker

Registered: 05/15/08
Posts: 655
Loc: Dallas
I did my deal in May/June....Lone Star Ag Credit...20 year amortization, fixed for 5 years @ 5.85%, and I put about 30% down. My plan is to have about 40% of it paid down by that 5th year, and then deal with refinancing it then or re-amortizing the loan.

Enjoyed dealing with the Lone Star crew out of New Boston.


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#956769 - 10/11/09 09:31 PM Re: question about buying land... [Re: junfan68]
WildEd Offline
Woodsman

Registered: 01/17/08
Posts: 191
Loc: Texas
You must have an AG exemption before you can convert to a Wildlife Exemption. It takes 5 years to build an AG history if the land you are buying does not have an AG exemption so be sure and check the records at the County Appraisal District office.

_________________________
http://wildedtx.blogspot.com/

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#958445 - 10/12/09 05:50 PM Re: question about buying land... [Re: WildEd]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
So is a 25 year with 20% down @ 7.5% about the best out there right now. Looking at some land right now to close within 60 days.

_________________________
If you can't lick your own, you can't sit on the dog stand!

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#958725 - 10/12/09 07:44 PM Re: question about buying land... [Re: No-Tox]
JJH Online   content
Veteran Tracker

Registered: 10/03/06
Posts: 3118
Loc: Katy
YOu can go lower, but it would likely be a variable rate loan.


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#960383 - 10/13/09 01:11 PM Re: question about buying land... [Re: JJH]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
For those interested I found a 25 year loan with 15% down @ 6% through Heritage Land Bank. About the best that I could find out there right now.

_________________________
If you can't lick your own, you can't sit on the dog stand!

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#963925 - 10/14/09 08:36 PM Re: question about buying land... [Re: No-Tox]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
I'm under contract right now and am using Capital Farm Credit as well. Rates (15 year adjustable):

3 year reset: 5.8%
5 year reset: 6.4%
7 year reset: 7.0%
15 year fixed: 7.9%

I'm putting about 30% down and the loan has been approved, pending appraisal.

Did any of you have any issues with the land appraising at what you thought it would? That's really my only question now.


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#963940 - 10/14/09 08:44 PM Re: question about buying land... [Re: cameron00]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
The appraisal is really nothing more than comparing what similar tracts of land in the area have sold for recently. In my area about 3k an acre depending on what the land looks like and what is on the land (electricity, water, and such).

_________________________


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#963958 - 10/14/09 08:51 PM Re: question about buying land... [Re: helomech]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
Helo - Did you see the pics I put up of the place the other day? I bumped it a few times, but wasn't sure if you saw it.

I'm pretty sure I got the land for a steal, so if it doesn't appraise, I'm going to be pissed off.


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#963961 - 10/14/09 08:52 PM Re: question about buying land... [Re: cameron00]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
No, I missed it. Where was it and what was the thread title?

_________________________


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#963998 - 10/14/09 09:06 PM Re: question about buying land... [Re: helomech]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
Here it is.

It looks like you did find it. Land is right in between Caldwell and Lexington on the border of Lee and Burleson Counties. I'm trying not to think about it too much, because if it falls through I'm going to be depressed.


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#964128 - 10/14/09 09:59 PM Re: question about buying land... [Re: cameron00]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
Yeah, just on the other side of Bryan. It will work out, might run across some problems, but that is how buying land goes. It seems to work out in the end. I took me about 6 months to close on mine.

_________________________


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#965808 - 10/15/09 04:23 PM Re: question about buying land... [Re: helomech]
ttugmc Offline

Light Foot

Registered: 05/07/09
Posts: 24
Loc: Austin
This is a great topic. I just went throught this process this year, and it is VERY difficult to find information. Some suggestions from a guy who just went through it:

1) Get a good real estate broker that is familiar with the area to help you. I have bought homes without an agent, but this ain't buying a home. A good broker who is familiar with the area will provide you with a number of advantages:

a) He will know what is for sale out there. Unlike houses, not all land is listed for sale. A good broker will be able to show you things that you never knew were for sale.
b) He will know a great deal about the property you are looking at. Ownership history, bad neighbors, hunting history. These guys have lived there for years and have an amazing amount of knowledge about the history of most properties.
c) He will help you through all the things needed to be done to close. Loans, surveys, well tests, etc... things you likely do not even know need to be done if this is your first time.
d) He will have a ton of contacts to help you find local contractors/services. Want to build a home, fence, well, tank...a good broker can help you find someone.
e) Obviously he will understand the going rate for property in the area you are looking at, almost certainly, better then you do.
f) Finally, and this is BIG. He will help you understand all of the financial implications. I was shocked at how many financial surprises I had in the process were actually positive. Tax advantages of owning and improving your land are amazing, as mentioned earlier, ag exemption is amazing. Land loans are a bit more complicated/higher rates, but they can also have much more flexibile terms. Obviously, those advantages do not take the cost to zero (to be clear, no where close), but it may not cost as much as you think when you figure in tax savings.

Unless you really know what you are doing, get someone to help you, even if you think you know what your are going to buy.

2) Look at a bunch of places. Even if you love the place you are looking at now, look at some more. It will help you get a better feel for what you like/don't like, what you must have, want to have and must not have. I have been on a lot of places, but when I started looking at places from the perspective of this might be mine, I started noticing things that never really stood out to me before and seeing a variety of places helped me understand what was really important to me. You just start looking at things differently when it might be yours vs. just a lease.

3) If you have family and time with them is important to you, your family must LOVE the place too. I spend a lot of time on the ranch and I like being with my family, there has to be something there for my wife and daughter too. My son and I are more then happy being out there building fences, setting up feeders, walking the property. But the creek with the swimming hole attracts my daughter, a decent place to sleep makes my wife enjoy the place more. The final decision was a family decision, not just mine.

4) I would get a real estate lawyer to review all docs. It is really not that expensive and can avoid a nightmare if there are easement or access issues, mineral right issues. It is worth a few hundered dollars just to have a better sense of comfort that there are no surprises, and it is worth the cost of the ranch if the lawyer finds a big problem. I have been through legal issues on an easement associated with my house and trust me nobody wins, even if you win (I did), the cost,frustration, and the discomfort created with your neighbors (if they are involved) are not worth it.

5) Get a CPA or financial advisor and a lawyer (yea, I know that's two lawyers, but if the must exist use them to your advantage :-))who understands the financial impacts of buying property and setting up an agricultural business (if you are going to have livestock or lease grazing rights). Make sure you set this up right so that you do not lose tax benefits.

6) To directly answer one of your questions...Get insurance, it is very inexpensive and will help you sleep at night.

I am sure there is more, sorry this is so long, you just struck a cord with me as I just went through this and was surprised and frustrated by how little information is out there. I will also tell you that about six months into this, I absolutely love it. We use the property all the time, hunting, working, just being in the country it is all fun. I have a 10 yr old daughter and 11 yr old son, and this is just a great experience for them. We live in the city and I am really pleased that they are getting to experience a different way of life to some extent.


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#965836 - 10/15/09 04:35 PM Re: question about buying land... [Re: ttugmc]
dr730 Offline
Bird Dog

Registered: 12/06/05
Posts: 460
Loc: Keller,TX
ttugmc, great post. thanks for all of your insight. this is a process I hope to experience soon.

_________________________
Founder,Texasgundogclub.com

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#966374 - 10/15/09 08:35 PM Re: question about buying land... [Re: cameron00]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
Originally Posted By: cameron00
Here it is.

It looks like you did find it. Land is right in between Caldwell and Lexington on the border of Lee and Burleson Counties. I'm trying not to think about it too much, because if it falls through I'm going to be depressed.


You probably don't have anything to worry about. you'll probably be surprised about how close the appraisal comes into the selling price. Unless something is way off you should be fine. If it is way off, it is better that you find out up front.


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#991590 - 10/26/09 11:27 PM Re: question about buying land... [Re: No-Tox]
BillD Offline

Tracker

Registered: 07/03/09
Posts: 927
Loc: Emory Tx
Another thing you need to do is make sure you know who owns the property. In a lot of cases the land is in some kind of a trust or has several heirs with undivided interests. I say this because we leased 100 acres behind our place and then leased our farm and the 100 acres to a guy who worked the land. We cut three checks to the three owners. One day the family wanted to sell. We didnt buy it but and oil co. did and it turned out that there were 28 people that had an interest in the property. To avoid problems you need to have the abstract brought up to date. Abstracts show the ownership of the property going way back. When the abstract is updated then have an attorney review it to make sure everything is in order and you pay the right people.


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#991766 - 10/27/09 06:33 AM Re: question about buying land... [Re: helomech]
Dave Davidson Offline
Veteran Tracker

Registered: 06/24/06
Posts: 3444
Loc: Hurst, Tx
Helomech, what is a veterans exemption?

I currently have a wildlife exemption and it seems to be no sweat. It just rolls from one year to the next. However, others have posted that they have to have annual plans that are big PITA's. I assume that each County can do what they want with their taxing authority. If I could change to some kind of veterans exemption, that wouldn't change (assuming again) from year to year.

The biggest factors on buying land are the ag exemption which you have to immediately continue or face huge taxes, NEIGHBORS, access, mineral rights, finances, etc.

If you're just looking for a place to hunt, leasing is usually a lot cheaper. I've often said that if I wasn't a landowner I could afford to hunt Africa and take guided fishing trips at the lakes of my choice.

Regarding land ownership, you will often hear that they aren't making anymore of it. They don't need to. There was a lot of it made in the beginning and it's still out there. And, right now, it's tough to sell. Not a lot of potential buyers have the credit rating, down payment or disposable income to buy anything used for recreational property.



Edited by Dave Davidson (10/27/09 06:41 AM)

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#992125 - 10/27/09 09:38 AM Re: question about buying land... [Re: Dave Davidson]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
If you are a disable veteran than you qualify, just bring your disabled veteran paperwork to the county tax office, and it is in addition to other exemptions. You don't have to pick one.

_________________________


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#993466 - 10/27/09 05:09 PM Re: question about buying land... [Re: helomech]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
Looks like I may have a done deal. Just waiting on the final survey to split the property up so I can get my 65 acres. This is for recreational duck hunting land. 55 acres in bottom wetlands and 10 acres up top for a cabin later on. If you can qualify, rates and terms are really good right now.
Should be closing Dec. 1st.


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#994684 - 10/28/09 12:15 AM Re: question about buying land... [Re: No-Tox]
helomech Offline
THF Celebrity

Registered: 11/14/07
Posts: 13233
Loc: Latexo, tx
Awesome, congrats to you. Hope everything goes smooth.

_________________________


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#1000624 - 10/30/09 08:09 AM Re: question about buying land... [Re: JJH]
TX_LT230FH Offline
Veteran Tracker

Registered: 05/16/07
Posts: 3288
Loc: North Dallas
I just went through all this several months ago. What I learned:

I found a better rate and terms at a local bank than at the federal land bank (agcredit.com). Also was able to get a 15% down payment instead of 20, and the loan is fixed for 5 years and then re-negotiated. I used Jacksboro National Bank.
Insurance is not required without structures, but I took out a 1 million $ liability policy in case some yahoo sneaks in and hurts himself and tries to sue me. It's only about 130$ a year through Farm Bureau.
Electricity and water can be expensive. I'm in the situation someone mentioned above. I can pay 18k$ to run a line from the closest municipality, but that can't happen because they are at capacity. So it's water well time. Drilling a test well is 8$ per foot with a 70' minimum. That will be happening soon.
The AG exemption is worth it. My 115 acres is 180$ per year property taxes with it, 1800$ without it. If you lose an AG exemption, it can take 5 years to get it back according to the Appraisal District folks.
Talk to the locals before you buy. Nothing worse than finally finding a place you really want and then finding out they are getting ready to put in a motocross track next door (believe me, it happens).
You will hemorrhage money when you buy your own place, but it will be for YOU. No more worrying about losing the lease, etc.

_________________________

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#1003175 - 10/31/09 01:40 AM Re: question about buying land... [Re: TX_LT230FH]
rsquared Offline

Veteran Tracker

Registered: 01/15/09
Posts: 3199
Loc: Round Rock, ranch in Junction
have you tried getting a well witcher to find your ideal well location.

i know some dont believe in it, but i grew up watching my dad find water line after water line with a set of copper witches...

on my place, i walked around with the witcher for 30 minutes watching him do his thing. he marked spot after spot and then stopped the witching and went back and triangulated the two best spots where the water tables crossed or where the water source was strongest.

we drilled on that spot and got a nice flowing well out of it.
it was almost 300 feet down to get to water, but it has been a strong well so far.

that was only $200 for his services. he has since done around 10 other wells on the ranch with no "dry wells"

_________________________
Stuff my dad said in the deer blind

"I can dive deeper and come up drier"
"did you do that?"

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#1007078 - 11/01/09 11:29 PM Re: question about buying land... [Re: Hunter_Man]
MamaJodie Offline
Tracker

Registered: 10/15/08
Posts: 515
Loc: Springtown, TX, Parker County
Hunter_Man,
I want to thank you for this thread and I want to thank everybody that has commented.
I have often wondered about every single issue brought up on this thread.
I will be creating a file just for this...
So, when the day comes...I'll have a good idea of the direction to go in.

_________________________
http://i115.photobucket.com/albums/n311/mamajodieg/d8de80d8005132e36826a93b8b107c5a.jpg
See Rule 17: Signature images may not be larger than 600 pixels wide by 125 pixels tall.

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#1007088 - 11/01/09 11:33 PM Re: question about buying land... [Re: MamaJodie]
MamaJodie Offline
Tracker

Registered: 10/15/08
Posts: 515
Loc: Springtown, TX, Parker County
Oh, one question...what are the qualifications for Ag exempt?

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#1007486 - 11/02/09 09:26 AM Re: question about buying land... [Re: MamaJodie]
texas_sooner Offline
Bird Dog

Registered: 11/02/09
Posts: 317
Loc: Pearland, TX
What type of closing costs do you hae to pay for this type deal? Just got my wife's support to buy land instead of leasing.

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#1008196 - 11/02/09 01:38 PM Re: question about buying land... [Re: texas_sooner]
dr730 Offline
Bird Dog

Registered: 12/06/05
Posts: 460
Loc: Keller,TX
congrats texas_sooner! I got my wife's support a few months ago too so we are in the process of getting financially "ready" for this. We will need between $4000-$10,000 just for a down payment. Keep us posted on your progress, this will be a fun thread to watch!

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#1008250 - 11/02/09 01:54 PM Re: question about buying land... [Re: dr730]
Texas_Hunting_Best Offline
Light Foot

Registered: 10/30/09
Posts: 43
Loc: Val Verde & Edwards Co.
Rates won't be great because of the risk associated with land loans that are not within a city's limits. Most Banks won't give more than 80% of the appraised value. From the Bank's point of view, if the loan defaults, what is their ability to collect the loan proceeds through liquidation of the collateral (the land).

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#1008353 - 11/02/09 02:27 PM Re: question about buying land... [Re: Texas_Hunting_Best]
texas_sooner Offline
Bird Dog

Registered: 11/02/09
Posts: 317
Loc: Pearland, TX
thanks dr730. When I mentioned buying our own land, and she said she liked the idea, I spent half the work day looking through websites selling land. Funny how these things change spending priorities. I was looking at a new truck for next year, but now I'll gladly keep my paid off Silverado another few years.

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"What's right is right." Billy Batts

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#1008750 - 11/02/09 04:19 PM Re: question about buying land... [Re: texas_sooner]
dr730 Offline
Bird Dog

Registered: 12/06/05
Posts: 460
Loc: Keller,TX
Originally Posted By: texas_sooner
thanks dr730. When I mentioned buying our own land, and she said she liked the idea, I spent half the work day looking through websites selling land. Funny how these things change spending priorities. I was looking at a new truck for next year, but now I'll gladly keep my paid off Silverado another few years.


I know exactly what you mean. I'm not even leasing this year in an effort to try to get to where we can actually do this. I'm gonna drive my silverado until the wheels fall off, and then fix it and keep driving it some more! AND, we are gonna stay in our little house instead of getting a bigger place. Priorities! LOL.

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#1009019 - 11/02/09 06:06 PM Re: question about buying land... [Re: dr730]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
You got to have total buy in from the spouse becuase you think you spend a lot of time at the lease. Wait until you own the land and you just want to "go check on it". I took my wife around to see about 4 to 5 properties over the last 6 months. The only property she was happy with was the one that was only 45 minutes away from the house. It was great for me because this was also a place I have hunted for 4 years and know very well already.
The biggest hurdle for most people is the down payment. I'm not sure where the $4,000 to $10,000 came from as stated before you are going to need 20% of the appraised value (so hopefully the appraisal will be same or more as the purchase price). So if you are looking at a small peice of property for $100,000 (on the cheap end) you will need $20,000 just for the down payment. Your closing costs will be anywhere from $2,000 to $4,000.
I'm just very happy that God has given us the opportunity to do this without having to go into debt.



Edited by No-Tox (11/02/09 06:08 PM)
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#1009165 - 11/02/09 06:56 PM Re: question about buying land... [Re: No-Tox]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
We're closing on Friday. I just built my feeders and have everything ready to go. I'm heading straight from the closing to the property to get everything going.

Process was actually really easy. We went under contract almost exactly 1 month ago.


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#1010921 - 11/03/09 10:56 AM Re: question about buying land... [Re: cameron00]
texas_sooner Offline
Bird Dog

Registered: 11/02/09
Posts: 317
Loc: Pearland, TX
Congrats cameron00. I be you're really anxious for Friday to get here. If it was me, I'd probably be too excited to sleep Thursday night

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#1011029 - 11/03/09 11:39 AM Re: question about buying land... [Re: No-Tox]
sig226fan (Rguns.com) Online   happy
duck & cover
THF Celebrity

Registered: 11/21/05
Posts: 27443
Loc: Hickory Creek, Fannin Co. Texa...
Originally Posted By: No-Tox
Originally Posted By: txhunter24
How much of a tax brake does an ag exemption actually get you?


TONS! The place I hunt on now is about 300 acres and the taxes are $350 a year. If it is not in AG exempt or some other exempt status currently the process can take up to 3 years to establish the exemption. So it is critical to look at that when purchasing a property.
Other things are electric and water. Just because they are right on the road by your place doesn't mean it will be cheap or that you can tap into it. I know of a place that has electric by the road and it will cost a bit to get it to extend to where it is needed and there is water lines on the road. The kicker is that the water lines are loaded so until they upgrade the system no one else can tie into them. So that means a well if you want water. It's the little things like that will spike your costs once you buy if you don't do your homework.


If you are building a single family permanent structure and they are a public water supply they can't legally decline service. They'll try....

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#1011134 - 11/03/09 12:12 PM Re: question about buying land... [Re: No-Tox]
dr730 Offline
Bird Dog

Registered: 12/06/05
Posts: 460
Loc: Keller,TX
Originally Posted By: No-Tox
You got to have total buy in from the spouse becuase you think you spend a lot of time at the lease. Wait until you own the land and you just want to "go check on it". I took my wife around to see about 4 to 5 properties over the last 6 months. The only property she was happy with was the one that was only 45 minutes away from the house. It was great for me because this was also a place I have hunted for 4 years and know very well already.
The biggest hurdle for most people is the down payment. I'm not sure where the $4,000 to $10,000 came from as stated before you are going to need 20% of the appraised value (so hopefully the appraisal will be same or more as the purchase price). So if you are looking at a small peice of property for $100,000 (on the cheap end) you will need $20,000 just for the down payment. Your closing costs will be anywhere from $2,000 to $4,000.
I'm just very happy that God has given us the opportunity to do this without having to go into debt.



well I have been looking at smaller places out of state around $30,000-$50,000 and was figuring a down payment of around 15%-20%. If I buy in Texas all that would probably go way up to about what you are talking about.

Sounds like you will have a great place pretty soon! Congrats.

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#1013350 - 11/04/09 07:24 AM Re: question about buying land... [Re: No-Tox]
TX_LT230FH Offline
Veteran Tracker

Registered: 05/16/07
Posts: 3288
Loc: North Dallas
Two of the best sites I've found are www.landsoftexas.com and www.texashuntingland.com



Edited by TX_LT230FH (11/04/09 07:25 AM)
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#1032470 - 11/12/09 12:19 PM Re: question about buying land... [Re: TX_LT230FH]
texas_sooner Offline
Bird Dog

Registered: 11/02/09
Posts: 317
Loc: Pearland, TX
Just burned another morning on the interent looking for some land to buy.

TX_LT230FH, that first website is helpful. Thanks for posting.

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"What's right is right." Billy Batts

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#1032704 - 11/12/09 02:07 PM Re: question about buying land... [Re: texas_sooner]
dr730 Offline
Bird Dog

Registered: 12/06/05
Posts: 460
Loc: Keller,TX
Originally Posted By: texas_sooner
Just burned another morning on the interent looking for some land to buy.

TX_LT230FH, that first website is helpful. Thanks for posting.



happens all the time.... fun aint it!

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#1034739 - 11/13/09 11:42 AM Re: question about buying land... [Re: TX_LT230FH]
Txduckman Offline
THF Celebrity

Registered: 08/30/04
Posts: 10618
Loc: Big D
Man, where I hunt the same listings on landsoftexas have been on there for over a year with new ones added at even higher prices. My old lease is in one of the pictures and it wasn't worth $1,000 total just to lease it. More land for sale than I have ever seen and no comps to support them since nothing has sold even close to what they are asking. And less money out there to buy with. Our own moderators land is down to $1,295 an acre and last year they would not go below $1,600. Times have changed.

Now this is funny! Texas hunting land has South African land for sale!

http://www.texashuntingland.com/Listings/2925SouthAfrica.htm


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#1035472 - 11/13/09 05:17 PM Re: question about buying land... [Re: Txduckman]
Nathan at Fork Online   content
Extreme Tracker

Registered: 09/29/07
Posts: 4352
Loc: Emory, TX
Well, Im dealing with a purchase right now. Not recreational funting land, but a 70 acre farm. Will be living there. MY loan fell through when they realized how much land was with it. Had a 30 year fixed locked in at 4.875%. But, apparently, no one will do a regular loan when so much land is involved.

So, now the best rate Ive found is a 5 year ARM at 6.5 % and 15% down on a 30 year note with no origination fee. Sure hate to do an adjustable mortgage but so far everyone has told me its impossible to do a fixed rate loan on a farm where most of the value is in the land. That mortgage is with City National Bank in Yantis.

I called several of the AG lenders and their rates where higher.

Anyone have any other suggestions? I can do a down of 20% on the purchase price of 180K. Have great cresit, and income to be approve on a larger loan. Would appreciate any help.



Edited by Nathan_at_Fork (11/13/09 05:19 PM)
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#1038764 - 11/15/09 08:33 PM Re: question about buying land... [Re: Nathan at Fork]
Txduckman Offline
THF Celebrity

Registered: 08/30/04
Posts: 10618
Loc: Big D
Is the reason they won't do that b/c they don't think current prices will even hold up? Too much risk on their part?


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#1039553 - 11/16/09 09:38 AM Re: question about buying land... [Re: Txduckman]
Koolade Offline
Bird Dog

Registered: 10/08/08
Posts: 404
Loc: Stamford, TX
TXduckman,
The money is readily available, at least out this way it is. We have lenders contacting us LOOKING for loans to MAKE. They are local banks and Ag Lenders, but they are there. Terms aren't outrageous either. Of course, it could be because land is still quite a bit cheaper in most of this area than the rest of the state too.

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#1039631 - 11/16/09 10:16 AM Re: question about buying land... [Re: Koolade]
dgilbert Online   content
6 pack abs
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Registered: 09/04/04
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Some good infor here, going to stick it.


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#1041228 - 11/16/09 08:14 PM Re: question about buying land... [Re: dgilbert]
Nathan at Fork Online   content
Extreme Tracker

Registered: 09/29/07
Posts: 4352
Loc: Emory, TX
Well, I have called a total of 20 banks and ag bank but the only one who comes close to the 6.5% 5 yr ARM is Legegacy Ag in sulphur springs and they offer the same 30yr loan in a 5 yr ARM at 6% but require an extra 5% down, and a $1000 loan fee. Think Ill be going with CNB in Yantis. I even called all the big AG banks around the state. Guess Ill just have to buy it now, and try and refinance within 5 years using my VA loan or something.

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#1043339 - 11/17/09 02:57 PM Re: question about buying land... [Re: Txduckman]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
Nathan-I'm going with an AG bank becuase of the Co-Op aspect and being paid a dividend each year if the banks does well. I had to pay the origination fee ($1000) but will make that back with the dividends in no time. with similar rate as you are getting with a 5 year ARM on a 25 year note.
Adjustable is how the AG banks are able to be profitable. You can get a fixed rate but you will be looking at 8% or more.

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#1044277 - 11/17/09 08:00 PM Re: question about buying land... [Re: No-Tox]
timbertoes Online   content
Veteran Tracker

Registered: 11/09/04
Posts: 2811
Loc: Van Alstyne, Tx.
Nathan, Please do not get an ARM. its like playing russian roulette with your life.

Better that you live in a shack, with a future.

than live in a shack becuase you lost everything.

With Obama, + whoever = gambling on the future.


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#1046500 - 11/18/09 04:09 PM Re: question about buying land... [Re: timbertoes]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
Originally Posted By: timbertoes
Nathan, Please do not get an ARM. its like playing russian roulette with your life.

Better that you live in a shack, with a future.

than live in a shack becuase you lost everything.

With Obama, + whoever = gambling on the future.


Good advice if there was a real choice. When buying raw land that is how business is done now. Mostly because of AG banks that want to "guarantee" they will make money and not go out of business like some are doing now a days. These aren't regular ARMs that are suckering buyers into more loan than they can afford.

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#1046734 - 11/18/09 06:01 PM Re: question about buying land... [Re: No-Tox]
timbertoes Online   content
Veteran Tracker

Registered: 11/09/04
Posts: 2811
Loc: Van Alstyne, Tx.
remember the 80's. 15% interest...

maybe you can split this thing up. House + some land. low interest fixed 30yr, low down payment.
the remaining land at 15yrs + max down.


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#1046994 - 11/18/09 08:03 PM Re: question about buying land... [Re: timbertoes]
Koolade Offline
Bird Dog

Registered: 10/08/08
Posts: 404
Loc: Stamford, TX
No-Tox is right about these not being the type of ARM's meant to lure people in. The AG Lending institutions are more conservative, and didn't participate in that practice for the most part. The same can be said for many of the local banks that are still very strong.
Most of these 20 year Ammortized, 5 year fixed loans are capped somehwere in the mid to high 8's (at least the ones my clients have gotten lately).



Edited by Koolade (11/19/09 03:25 PM)
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#1076066 - 12/02/09 09:35 AM Re: question about buying land... [Re: Koolade]
glens Offline
Extreme Tracker

Registered: 02/09/08
Posts: 4846
Loc: Fayette County
Buy it with your IRA.


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#1080689 - 12/03/09 07:39 PM Re: question about buying land... [Re: glens]
jhptxrancher Offline
Woodsman

Registered: 12/01/09
Posts: 101
Loc: Medina/Frio County Tx
Originally Posted By: glens
Buy it with your IRA.


be careful and check w/ tax advisor. I'm not sure if the exemption is applicable in this case. Make sure of the tax implications before using a retirement acct. Unless you're over 59 1/2. then doesn't matter.


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#1080819 - 12/03/09 08:34 PM Re: question about buying land... [Re: JJH]
medic726 Offline
Light Foot

Registered: 11/20/09
Posts: 35
how important is it to try and get mineral rights these days, it seems that not many people want to give them up or they dont have rights with the sale


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#1082856 - 12/04/09 04:11 PM Re: question about buying land... [Re: medic726]
txhunter24 Offline
THF Trophy Hunter

Registered: 09/25/08
Posts: 7537
Loc: Runnels County
Its important IMO but good luck getting them with the crazy oil and gas market now.

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#1091925 - 12/08/09 08:03 PM Re: question about buying land... [Re: txhunter24]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
Minerals just flat aren't owned by many current owners these days. You can find out who does own them and do your best to buy them out if you want, but they're not going to sell cheap typically.


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#1092690 - 12/09/09 01:24 AM Re: question about buying land... [Re: cameron00]
fishinbob2 Offline

Outdoorsman

Registered: 04/06/09
Posts: 94
Loc: Lake Conroe,Tx
Read my ad in land and leases. I am giving full minerals and there is a well ..That is the back 15 acres not the front .

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#1093946 - 12/09/09 02:38 PM Re: question about buying land... [Re: fishinbob2]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
I should rephrase that...

There are still plenty of places where you can get minerals on land, but those places are typically places where the likelihood of valuable minerals isn't high. Because anywhere that is a hot spot for oil & gas will have speculators making offers on mineral rights. If the owners turned down the speculators because they didn't want someone drilling on their land, but are now selling it, they will price the mineral rights into the price of the land.

People aren't stupid. Most of the places I've looked at and inquired as to mineral rights have been 1 of 3 answers:

1. Don't own the minerals - sold before current owners bought or current owners already sold.

2. Won't sell minerals or will sell minerals for an additional $40,000.

3. Sure, you can have the mineral rights. This isn't an area where natural gas or oil is drilled for.


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#1094033 - 12/09/09 03:10 PM Re: question about buying land... [Re: cameron00]
booger Offline
Veteran Tracker

Registered: 11/01/06
Posts: 2285
Loc: central Texas
Any idea on how water is considered? It may be the most important "mineral" ever!!!!

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#1105177 - 12/14/09 01:29 PM Re: question about buying land... [Re: booger]
fbcoach Offline
Light Foot

Registered: 12/10/09
Posts: 23
Loc: Texas
Some people even keep their water rights, wind rights are being kept in west texas. The most important thing to do is take your time,shop around and make sure your not buying more than you can afford. Don't become discouraged when something goes wrong. My wife and I have used the Texas Land Bank, and they have been great. You do have to have 20% down though, but we got our note for 30 yrs. I second and third the amount of time and money you will spend on your new property, but to me it is well worth having something to leave my kids. Property values only increase, it's the most stable investment anyone can make.

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#1113815 - 12/17/09 09:25 PM Re: question about buying land... [Re: fbcoach]
Txduckman Offline
THF Celebrity

Registered: 08/30/04
Posts: 10618
Loc: Big D
They don't increase when more land keeps popping up in this market. If you buy now, you better be ready to hold onto it for a LONG time.

Starting to be a buyers market if there are buyers. Land is down to $1,800 an acre in Montague on a place near us though it doesn't look that great. That is what it was going for 6 years ago. It was around $2,400+ I believe recently. Values only increase if someone pays the increase. Way too much out there to support the buying levels. We have had land for sale now going on 4 years near us and they won't drop the price... Makes no sense if they are actually serious. Still new properties are popping up for $3,000 an acre but you can lease for a heck of a lot less if you just want to hunt.

http://www.countryhomesoftexas.com/texas/index.cfm?detail=&inv_id=89737


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#1119594 - 12/21/09 10:31 AM Re: question about buying land... [Re: Txduckman]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
A lot of people list land for sale under the "if the price is right" idealogy. They don't really want or need to sell, but will if they can a certain amount.

That amount is usually way above market value and the land doesn't sell and they don't care. You can tell who really needs to sell by their pricing.

If you look on "landsoftexas.com", close to 100% of the listings are very significantly higher than what the land actually trades at. I know that because I've been part of the buying process on 2 pieces I found there:

1 - 40 acres near Hallettsville. Ask: $196k Contract: $122k
2 - 40 acres near Caldwell. Ask: $178k Contract $128k

The ask is basically a suggestion. Many times it's way off.


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#1144136 - 01/02/10 02:57 PM Re: question about buying land... [Re: cameron00]
txmudbug Offline
Green Horn

Registered: 07/19/06
Posts: 6
I am a farm and ranch broker and I agree with cameron00 on his assessment. It is now a buyers market and most sales are 12% to 25% below list price. Some areas of the State are holding up well while others have really taken a hit. Overall sales prices are about where they were three years ago, more in some areas, less in others.


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#1192495 - 01/23/10 08:53 AM Re: question about buying land... [Re: JJH]
flyboy Offline
Outdoorsman

Registered: 12/02/05
Posts: 51
Loc: Fort Worth Texas
On insurance, you may want to carry liability, even if you have no improvements, etc. If someone (even a tresspasser) gets hurt on your land, you're liable.


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#1195776 - 01/25/10 07:51 AM Re: question about buying land... [Re: flyboy]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
Originally Posted By: flyboy
On insurance, you may want to carry liability, even if you have no improvements, etc. If someone (even a tresspasser) gets hurt on your land, you're liable.


It's not quite as simple as this. If you're found to have been contributorily negligent, you can be found partially liable.

Not just cut and dry "If a trespasser gets hurt on you're land, you have to pay them."

If your land has no improvements and isn't used for farming, you're likely already covered under your homeowner's policy. Check with your insurance agent.


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#1197506 - 01/25/10 07:22 PM Re: question about buying land... [Re: JJH]
Stevarino Offline
Pro Tracker

Registered: 01/25/10
Posts: 1296
Loc: Mckinney, TX
The process is similar to buying a house, but expect to do a full income/ asset verification. As long as you haven't had mortgage lates, delinquint accts, no bk's or forclosures, you should be good. Rates will vary for non owner occupied/ vacant land, but with rates today, I would expect high 5's or low 6% range. Taxes for vacant land should be low/very minimal, insurance shouldn't be required as long as the lending institution does not require. Like most have stated, plan on putting 20-30% down financing no more than about 20 years, possibly less...definatly check with your local banks/ credit unions..most of your bigger banks will not do vacant land/ lot loans anymore..
The best advice I can provide::: Make sure you fully understand the terms (rate, fixed/adj, balloon or fully amortized, cost, rate/apr...Remember your signing your name to that note. Good luck!

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#1199236 - 01/26/10 01:28 PM Re: question about buying land... [Re: Stevarino]
Big Red 12 Offline
Tracker

Registered: 12/20/09
Posts: 625
Loc: Crandall, TX
We have our nearly 1500 acre place SW of Sonora for sale and this is the problem we are running into. No one loaning money out on land, or we would have already had it sold.

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#1257255 - 02/20/10 05:41 PM Re: question about buying land... [Re: fbcoach]
Gus McRae Offline
Tracker

Registered: 09/06/09
Posts: 828
Loc: Frisco
Originally Posted By: fbcoach
Property values only increase, it's the most stable investment anyone can make.


That's the type of faulty logic that created the Residential Mortgage Crisis/Bubble of the 2003-2008 time frame. The banks were underwriting 10%+ annual appreciation into their models, which was clearly unsustainable, and resulted in a huge bubble. I think land banks in Texas are clearly more conservative than that, and realize we may be in a time with 0% appreciation for the next 10 years or so (if you're lucky, it could be negative depending on this current recession!).

Good topic here by the way!

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#1261212 - 02/22/10 07:24 PM Re: question about buying land... [Re: JJH]
topout26 Offline
Green Horn

Registered: 02/22/10
Posts: 3
I went thru the texas veterans land board. It took about 4 months but it was worth it 5% down and thirty year note of 519.00 on 76 acres in west texas. Ive got nice bucks,turkey,quail,aoudad,hogs,dove,bobcats, and a mountain lion to boot. Tell you what its the best thing ive done with my 401k money. There is nothing like calling your place your own. Remember there not making land anymore, and it is only going to go up. I remember seeing 295.00 acred prices in land in sanderson texas now its going for a little over a grand. Just about everyone else is 20% down and no one will finance more than 20yrs. If your a veteran and you are interested my neighbor is selling his 55 acre tract for 1000.00 acre.


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#1262353 - 02/23/10 10:23 AM Re: question about buying land... [Re: topout26]
txtrophy85 Online   content
THF Celebrity

Registered: 08/12/05
Posts: 19416
Originally Posted By: topout26
There is nothing like calling your place your own. Remember there not making land anymore, and it is only going to go up. I remember seeing 295.00 acred prices in land in sanderson texas now its going for a little over a grand. Just about everyone else is 20% down and no one will finance more than 20yrs.


I can sell you land in sanderson/dryden area for $395/acre all day long....anyone interested?


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#1372841 - 04/16/10 06:05 PM Re: question about buying land... [Re: txhunter24]
TexasVine Offline
Pro Tracker

Registered: 10/20/08
Posts: 1741
Loc: Lakeway/Fredericksburg
Great post and a lot of good information. I recommend getting an agent that represents you that has vast experience in buying and selling land. Restriction, mineral rights, easements, water, electric, roads, power lines, neighbors and a lot more need to be considered. Buying land is very tricking and there can be possible hidden problems that are known or unknown to the seller. Just as a side note, I have learned that out in the country, good fences make good neighbors. Good luck.



Edited by TexasVine (04/16/10 06:08 PM)
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#1389030 - 04/25/10 06:57 PM Re: question about buying land... [Re: Hunter_Man]
JAGRanch Offline
Green Horn

Registered: 04/25/10
Posts: 5
Loc: Cotulla, Texas - 20 miles west
The process is similar. However, typically the lender will require at least 25% down. This environment is not the best; however, lenders are (were) willing to lend out to 25 years. No, if there is no structure to insure, the lender typically will not require insurance. For small tracts, the seller may be willing to owner finance. In a year, no telling what interest rates will be. Unless there is some real banking/wall street reformn as the current adminstration seeks, things very well might be the same they are now in terms of credit availability - very poor. Under the deregulation policies, banks were allowed to go into much more lucrative businesses and they just are loaning money out these days.


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#1424684 - 05/14/10 12:29 PM Re: question about buying land... [Re: Hunter_Man]
Erich Offline
Bird Dog

Registered: 11/11/04
Posts: 427
Loc: Cibolo, TX
buying land (as a place to hunt) is harder than buying a house. you either have to have enough money to buy a big enough place that what your neighbors do isn't a big deal. or you have to find a smaller tract that isn't already surrounded by other small tracts. it takes a while to locate the right place.

you do not have to carry insurance on it. you can, but it is not mandatory. the only reason you would carry insurance is for liability purposes if the property is leased or saw lots of hunting guests.

for financing, most traditional banks will not finance land for more than 15yrs. you need to look for a land bank. check with texas ag finance or capital farm credit. they will lend out to 30yrs.

we bought our place 3yrs ago now. it took us six years to line it up though. don't get in a hurry on it. do your homework on the places.

Erich

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#1425465 - 05/14/10 06:39 PM Re: question about buying land... [Re: JJH]
oran Offline
Woodsman

Registered: 05/13/10
Posts: 114
Loc: TEXAS
Land is tough to buy, I bought my ranch 5 years ago...at that time down payments were 20%,Now they are 30% so get ready to shell out some cash. As far as insurance I dont have any and its not required,as far as good interest rates, dont expect that any more, we have excellent credit,and own stores that we have paid close to a million dollars for, we get better interest on them than the land. A good land interest I would look to pay at least 8% now. My payments on 504 acres that I paid 650.00 an acre for and put 58000 down on, are 33,000 a year, I make bi-annual payments 16,500 twice a year.Things have changed in the last 5 years, money is harder to get, and land is higher, good luck !!!


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#1492283 - 06/22/10 12:12 PM Re: question about buying land... [Re: oran]
East Texan Offline
Outdoorsman

Registered: 06/22/10
Posts: 61
Hi, I'm new here, but I have been saving and have a down payment for some land. I know not all or even many realtors do this, but I have to ask: For those of you who've bought land using a buyer's realtor, how do you know they have your best interest in mind since they get paid on commission? Finding a good rate is one thing, but the price is still a huge factor up front. I know when I bought my second house, I used a buyer's realtor and it made the seller's realtor very angry and was generally an unpleasant experience.

I'm looking to buy 100-150 acres to hunt in east Texas within the next year or so.

Also, are there any suggestions on factors to look for when judging deer population without the ability to spend a season scouting it first?


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#1492306 - 06/22/10 12:21 PM Re: question about buying land... [Re: East Texan]
rifleman Online   crying
Sparkly Pants
THF Celebrity

Registered: 11/19/08
Posts: 37652
Loc: Kingwood
Originally Posted By: East Texan


Also, are there any suggestions on factors to look for when judging deer population without the ability to spend a season scouting it first?


lots of cameras and corn piles and see what all is showing up. I went in blind hunting a new property a while back. I had been hunting on my lease and my g/f, now wife, said there was an old deer stand on the place she had just bought, we should go sit in it and just see what walks out. I gave her the go-ahead to pull the trigger on the first buck that stepped out..... a cpl weeks later we put cams out and I've been kickin' myself ever since for telling her to shoot that deer.

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Originally Posted By: NTX_Hunter
He and Tony Romo ought to be shot, they are both worthless.

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#1492313 - 06/22/10 12:24 PM Re: question about buying land... [Re: rifleman]
East Texan Offline
Outdoorsman

Registered: 06/22/10
Posts: 61
Thanks Rifleman.

I've never bought hunting land before, but my dad bought some rural land as an investment (he doesn't hunt) in East Texas and there were no deer signs at all (had a few hogs come through though).

Is it typical for a seller to allow you to go put out feeders or cameras? I wouldn't think they'd be too open to that.


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#1492319 - 06/22/10 12:28 PM Re: question about buying land... [Re: East Texan]
rifleman Online   crying
Sparkly Pants
THF Celebrity

Registered: 11/19/08
Posts: 37652
Loc: Kingwood
I was assuming you meant judging the pop. after purchasing the place. I wouldn't think it would be too easy to get cameras on the place before hand.

What area are you looking to buy?

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Originally Posted By: NTX_Hunter
He and Tony Romo ought to be shot, they are both worthless.

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#1492353 - 06/22/10 12:42 PM Re: question about buying land... [Re: rifleman]
East Texan Offline
Outdoorsman

Registered: 06/22/10
Posts: 61
I have a pretty wide area I'm looking at. My family is all in Smith and Anderson county, so pretty much anything in that area (Tyler, Palestine, Jacksonville, Athens, etc.). Henderson County, Cherokee County, Anderson County... I'd imagine Smith county's not worth it with the higher population. Maybe a little further west, but not too much further west than that. One of the sights had some Neches River frontage that might be good for fishing or ducks, too, it was about $1,500 an acre, which seems more reasonable than other places I'd seen.

I'd hate to buy land and find out there hasn't been a deer there in 20 years. That would kind of ruin it for me. I live in Waco now, so something close to a 2-3 hour drive would be nice, especially since I can stay with them while I'm hunting.



Edited by East Texan (06/22/10 12:43 PM)

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#1492521 - 06/22/10 02:07 PM Re: question about buying land... [Re: East Texan]
rifleman Online   crying
Sparkly Pants
THF Celebrity

Registered: 11/19/08
Posts: 37652
Loc: Kingwood
have a cpl friends who have land between Alto & Rusk and they have some bruisers to hunt every year. If I remember correctly, I saw an oil company selling land around 800-1200/acre around New Summerfield.

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Originally Posted By: NTX_Hunter
He and Tony Romo ought to be shot, they are both worthless.

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#1492616 - 06/22/10 03:06 PM Re: question about buying land... [Re: rifleman]
East Texan Offline
Outdoorsman

Registered: 06/22/10
Posts: 61
Yeah, New Summerfield would definitely be in the area I'm interested in. Thanks for taking the time to give me your input.


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#1492804 - 06/22/10 04:34 PM Re: question about buying land... [Re: East Texan]
rifleman Online   crying
Sparkly Pants
THF Celebrity

Registered: 11/19/08
Posts: 37652
Loc: Kingwood
your welcome.

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Originally Posted By: NTX_Hunter
He and Tony Romo ought to be shot, they are both worthless.

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#1493946 - 06/23/10 09:14 AM Re: question about buying land... [Re: rifleman]
East Texan Offline
Outdoorsman

Registered: 06/22/10
Posts: 61
Last question - is 100 or 150 acres worth it? It's a big price up front, but I've been saving money for almost 10 years now and I've hardly hunted at all because of work, so I'm a little rusty on deer hunting in general.

I'm guessing that it depends mostly on the specific tract of land... I mostly hear about these 1,000 acre leases, 10,000 acre leases, etc... can 100-150 acres be managed to produce good deer if it's a good tract of land (i.e. not 150 acres of cow pasture, next to a shopping mall, etc.).


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#1494071 - 06/23/10 10:08 AM Re: question about buying land... [Re: East Texan]
rifleman Online   crying
Sparkly Pants
THF Celebrity

Registered: 11/19/08
Posts: 37652
Loc: Kingwood
sending you a pm.

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Originally Posted By: NTX_Hunter
He and Tony Romo ought to be shot, they are both worthless.

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#1494127 - 06/23/10 10:31 AM Re: question about buying land... [Re: East Texan]
bhtkevin Offline
Bird Dog

Registered: 11/18/07
Posts: 428
Originally Posted By: East Texan
Last question - is 100 or 150 acres worth it? It's a big price up front, but I've been saving money for almost 10 years now and I've hardly hunted at all because of work, so I'm a little rusty on deer hunting in general.

I'm guessing that it depends mostly on the specific tract of land... I mostly hear about these 1,000 acre leases, 10,000 acre leases, etc... can 100-150 acres be managed to produce good deer if it's a good tract of land (i.e. not 150 acres of cow pasture, next to a shopping mall, etc.).


Honestly, buying that amount of land with the intent to grown big deer is very, very hard. It has to be in a very good location that allows you to siphon deer off of a much larger tract of land. It certainly can be done, but remember location, location, location. If your sole purpose is deer hunting, get a lease smile If its to have an investment in the future, I think its a good idea (just bought 140 AC's myself). I was looking for the right place/price for about 2 years before pulling the trigger.


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#1494311 - 06/23/10 12:17 PM Re: question about buying land... [Re: bhtkevin]
East Texan Offline
Outdoorsman

Registered: 06/22/10
Posts: 61
Thanks Kevin!


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#1496394 - 06/24/10 01:50 PM Re: question about buying land... [Re: East Texan]
dr730 Offline
Bird Dog

Registered: 12/06/05
Posts: 460
Loc: Keller,TX
This has been a really informative thread! I hope to own a piece of Texas soil one day too.

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#1526765 - 07/12/10 11:16 AM Re: question about buying land... [Re: txhunter24]
waterlandkennels Offline
Outdoorsman

Registered: 01/10/08
Posts: 74
Loc: waller, texas
We went through capital farm credit to finance the raw land.We have a 30 yr mortgage and had to put 20% down.Capital farm is usually 2% above prime unless they have changed. Most banks dont like to finance raw land or more than 15 acres, even with a house it. Usually if ag exempt in some way you will pay only a fraction of the taxes. You can look what the person paid the year before online or the realistate agent will tell you. But i will tell you the cheapest taxes is usually on tree production even cheaper than other types of ag.

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#1536350 - 07/16/10 10:16 PM Re: question about buying land... [Re: JJH]
kray Offline
Green Horn

Registered: 06/09/10
Posts: 5
Do these rates change if you purchase land with a small house on it? Say you purchase 50 acres with a little 1400 sq. foot home, wouldn't it then fall under a typical home loan with a better rate thus saving you money?


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#1546281 - 07/21/10 08:29 PM Re: question about buying land... [Re: JJH]
love texas hogs Offline
Light Foot

Registered: 07/19/10
Posts: 17
Interest rates are really low for people who are keeping cds in the bank. You may consider trying to buy the land on a land contract. I have worked on alot of these and they work really well if the seller does not need all the money up front. You can negotiate your down payment any where from ten to twenty percent down. Since a "CD" only pays one to three percent, sometimes the seller is happy to get 5 to 6 percent on there money. In short, the seller becomes your banker.


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#1599495 - 08/15/10 10:02 PM Re: question about buying land... [Re: JJH]
casti Offline
Light Foot

Registered: 08/15/10
Posts: 35
hey guys i need some help....im looking to buy some land somewhere close to dallas county and i found one in bowie county..does anybody know how the hunting is down there?any good sized bucks??


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#1599626 - 08/15/10 11:55 PM Re: question about buying land... [Re: casti]
Txduckman Offline
THF Celebrity

Registered: 08/30/04
Posts: 10618
Loc: Big D
East Texas? Good luck unless it is big! Unless you want live on property, you better get something big like 1000+ acres or you better lease if you want to manage deer. When you can pay $9 an acre for somerhing worth $2,500 an acre, not a bad deal to lease... No guarantee it will go up and it hasn't in 8 years.


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#1600835 - 08/16/10 04:09 PM Re: question about buying land... [Re: Txduckman]
casti Offline
Light Foot

Registered: 08/15/10
Posts: 35
how about red river county..anybody know about the hunting there...and thanks txduckman.


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#1635528 - 08/30/10 06:41 PM Re: question about buying land... [Re: casti]
olducker Offline
Outdoorsman

Registered: 12/31/09
Posts: 82
Getting into land ownership is hard - Getting out might be harder. Owning can be relentless work and with limited results. At this stage of the game I don't think I would recommend it. Perhaps when you could count on values to rise it made more sense., But it isn't so today, in fact the land prices are falling in many areas. I get the "run your own place" thinking but you most definatly can lease cheaper. Yes, I'm trying to throw ice water on the idea as a favor to a wavoring future land owner. Just pay the lease fee and roll on brother.


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#1702687 - 09/27/10 03:07 PM Re: question about buying land... [Re: olducker]
colt45 Offline
Veteran Tracker

Registered: 08/19/06
Posts: 2590
Loc: bastrop county
might keep this in mind, the more improvements you build the more your taxes will be.

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#1707156 - 09/28/10 10:19 PM Re: question about buying land... [Re: colt45]
rifleman Online   crying
Sparkly Pants
THF Celebrity

Registered: 11/19/08
Posts: 37652
Loc: Kingwood
one thing to consider is...you own it, you are never broke.

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Originally Posted By: NTX_Hunter
He and Tony Romo ought to be shot, they are both worthless.

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#1745118 - 10/13/10 11:59 AM Re: question about buying land... [Re: rifleman]
YellowDog31 Offline
Light Foot

Registered: 10/28/09
Posts: 16
Great thread. Alot of good info here. So, my brother and I are looking for a place between here and Oklahoma City - we have family there that would use the place. So far, we've considered several places in Texas and Oklahoma. My question is this: If I live in Dallas, and deer and turkey hunting are the most important thing to me, how far east can I go and still be pleased with the place? For example, there is a place in Titus County out by Mt. Pleasant. Are there any deer out there? Anyone know anything about the deer and Turkey in Atoka, OK? Thanks


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#1745499 - 10/13/10 02:37 PM Re: question about buying land... [Re: YellowDog31]
olducker Offline
Outdoorsman

Registered: 12/31/09
Posts: 82
Yes, there are deer in titus county. The hunting is so-so ;there may be a few turkey (eastern strain) more novelty than serious hunting population. Not to belabor the point but reread what I'm telling you about land ownership (reply above) Don't do it --- I'm your best buddy right now trying to save you from yourself.
As far as if you own it you are never broke --- uh, your always broke, taxes,repairs, that one more project to get it just right.


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#1745639 - 10/13/10 03:39 PM Re: question about buying land... [Re: olducker]
YellowDog31 Offline
Light Foot

Registered: 10/28/09
Posts: 16
Thanks, olducker. I appreciate the insight. Regardless of lease or own, anyone else know how far east from Dallas I can go and still have a good place to Deer and Turkey hunt? Maybe I'm asking the wrong question. Put it this way: where is the best country between OKC and Dallas, to hunt deer and turkey (can go east or west a bit)?


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#1755356 - 10/18/10 06:34 AM Re: question about buying land... [Re: YellowDog31]
gary75758 Offline
Tracker

Registered: 11/20/06
Posts: 950
Loc: Chandler/Kosse
YellowDog, I have owned several pieces of Texas and Okla, currently have a place in limestone county. Turkeys east of 1-35 in Texas are hit an miss, have a buddy with a place outside of Atoka that has turkeys but they are not over run with them. like olducker says there is always one more project to do.. but if you have family and friends there is no better place to bond than your own land. As far as being broke that has not happened to me, if you want it buy it, life is short and I have never seen a casket with a cash lock box in it..... texas


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#1759778 - 10/19/10 04:48 PM Re: question about buying land... [Re: gary75758]
No-Tox Offline
Tracker

Registered: 01/03/05
Posts: 513
Loc: Rockwall, TX
I have now owned my property for about a year now and am loving it. Is it costing me more than a lease, YES. But it is also nice to know that I'm the owner and any improvements I do on the property is mine. I don't have to worry about leases being pulled out from under me or dealing with others. Mine is only 65 acres, but my main hunting is ducks so the 50 acres of wetlands is what I wanted.
The one thing you want to keep in mind is try to get something within reasonable driving distance if you have a family. Trying to mix in family time and working on the property is hard if you are driving more time than spending on the land.
Money isn't going to get any cheaper to borrow than it is now. Most land is at the lowest you are going to find it. So if you have the means to do it now, I say go for it.
YellowDog31 - Try to get something east of I-35 around the Red River, either side of it.

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#1767255 - 10/21/10 10:43 PM Re: question about buying land... [Re: No-Tox]
jnd59 Offline
Outdoorsman

Registered: 09/11/10
Posts: 90
Some have suggested using qualified money (i.e. inside a retirement plan) to purchase real estate. While I am not providing specific tax advice, I would caution that personal use of that land could cause the entire basis (purchase price) or a portion thereof to be a deemed distribution. Additionally, placing debt on property purchased with qualified money can cause issues as well. It can possibly be done but I would suggest using one of the companies that specialize in that area.

Another suggestion is to not just get a real estate broker but get a broker with experience in ranch sales. There is a big difference. A farm/ranch broker can evaluate the value of standing grass and timber. This can help you determine what food sources are available. Do the same when you get the appraisal. A farm/ranch bank will know this but a standard bank may send out your standard residential appraiser. Usually the bank drives the choice but you can make sure you are getting someone that knows ranch land.

You can also consider buying a place that has adjacent crop land. You can lease the crop land to help defer the carrying costs. This type of set up COULD (consult your tax advisor) allow you to deduct some of the carrying costs. Consult a tax advisor experienced in farm/ranch as they can give you more insight than someone with less experience.

If you own land that is not your primary residence and want to sell it for better land, consider a tax free exchange, specially if you have a gain on it I.R.C Section 1031. There are different ways to do this and you need to plan this IN ADVANCE.

If you don't turn it into a farm/ranch property have your tax professional consider attaching an election to your return to capitalize carrying costs. This can add usually non-deductible expenses to the basis (cost) of the property so when you do sell it you will have less taxable gain.

If you don't have the mineral rights, consider the likelyhood that someone may want access to those minerals someday. With some restrictions, you cannot block access to the minerals. This means if you own the surface rights and they want to drill on your property, you may not have a lot of say, but you can and will get reimbursed for damages.

Consider the environmental aspects. If you buy land in certain areas and it is determined that those areas have habitat conducive to endangered species, you may lose your ability to hunt the property. Not likely to happen but it needs to be considered. Under the current legal framework, if you discover endangered species on your property you are held hostage, not rewarded, which is why SSS seems to be the standard operating procedure. Bassackwards incentive but that is what you get with congress.

Once you start to own land, specially if it is out of state, update your will and if you have little ones I would suggest a trust be created. Talk to a lawyer, I'm not one but I play one TV.

Just my 175/hr suggestions but free for all of you who keep our hunting traditions alive.

Last bit of advice. Talk to your attorney and tax professional. Don't assume anything is chisled in stone.

Great posts and information from all.






Edited by jnd59 (10/21/10 10:59 PM)

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#1774938 - 10/25/10 11:08 AM Re: question about buying land... [Re: jnd59]
Texas Fight Offline
Bird Dog

Registered: 11/05/08
Posts: 346
Loc: Lake Palestine sux
Some more FYI I thought Id pass on.

I just got off the phone with Heritage land bank. He said my wife has to be on the loan app. Which is a deal killer because we just got married and her credit has some bruises from a few years back.

Also on the down payment, most banks are just looking for equity to start, not necc money out of you pocket. If you buy land for 1500 and acre and it appraises for 21-2200 an acre you wont have to come out of pocket almost anything


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#1775229 - 10/25/10 01:36 PM Re: question about buying land... [Re: jnd59]
glens Offline
Extreme Tracker

Registered: 02/09/08
Posts: 4846
Loc: Fayette County
If you have a sizeable nest egg and you don't need at retirement, the qualified money ie (ira) is a good avenue. Just be careful, no personnel use. All money made on leasing off ag or hunting rights have to go back in ira capsule. Take out an acre or two for your home. Get a professional company to handle for you and pay a small maintenance fee per year. Entrust in Houston Tx. is such a company for self directed investments.If you buy now and land goes up, you will pay apprasial price (which could be exorbitant) when you decide to start removing it back out of ira. But I would check with a pro. My 2 cents.


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#1817878 - 11/09/10 12:25 PM Re: question about buying land... [Re: glens]
six_anthonys Offline
Pro Tracker

Registered: 09/11/06
Posts: 1013
Loc: DFW Texas
Great post....Hopefully getting ready to take the plunge in Montague county or Leon County. Budget is $200,000...25% down....

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6As

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#1831633 - 11/14/10 11:05 AM Re: question about buying land... [Re: Hunter_Man]
honeycutt Offline
Green Horn

Registered: 11/14/10
Posts: 3
If there are no structures your Home Insurance/Liability will cover it. Depending on who as access to your land and what you do with it...you will want to consider raising your liability coverage


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#1831699 - 11/14/10 11:56 AM Re: question about buying land... [Re: honeycutt]
kuntry_kid Offline
Tracker

Registered: 01/23/08
Posts: 641
Loc: Kaiserslautern, Germany
Anyone have experience with using the Texas Land board route for a loan?

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I am a proud United States Air Force NCO and I thank all of you for your support!!!

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#1868341 - 11/27/10 07:58 PM Re: question about buying land... [Re: kuntry_kid]
floresrsr Offline
Tracker

Registered: 11/27/10
Posts: 532
Loc: San Antonio, Texas
Everyone. I'm new to this forum and am amazed at how much info is freely shared between all of you. I, myself, have been looking to buy some acreage and this info has been very informative. Thanks!

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Once we have a war there is only one thing to do. It must be won. For defeat brings worse things than any that can ever happen in war.
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#1879048 - 12/01/10 08:31 AM Re: question about buying land... [Re: floresrsr]
ijohnston Offline

Tracker

Registered: 07/13/09
Posts: 994
Loc: Allen, Tx
I really wish my wife and I could purchase some land for my boys to grow up with. Problem is that saving 20% is dang near impossible for us. May take years to do that. And I make good money. When we bought our house I was able to get in it on a 15 year note at 0% down. My credit score is in the High 700s. Has anyone ever heard of anyone getting a loan at 0% down?


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#1879083 - 12/01/10 08:40 AM Re: question about buying land... [Re: ijohnston]
rifleman Online   crying
Sparkly Pants
THF Celebrity

Registered: 11/19/08
Posts: 37652
Loc: Kingwood
most banks won't touch it, but not sure exactly of what requirements they have to go by.

_________________________
Originally Posted By: NTX_Hunter
He and Tony Romo ought to be shot, they are both worthless.

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#1884908 - 12/02/10 08:58 PM Re: question about buying land... [Re: rifleman]
thegrouse Offline
Tracker

Registered: 12/22/08
Posts: 996
Loc: Wilson County, TX
I have seen owner financed places for 10 percent down. I talked to a few local banks that will do 15 percent down. If you qualify for Texas vets they have a low down plan. Good luck.


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#1939396 - 12/20/10 08:01 PM Re: question about buying land... [Re: kuntry_kid]
Chief Q Offline
Outdoorsman

Registered: 12/19/10
Posts: 88
Loc: Mansfield, Texas
Originally Posted By: kuntry_kid
Anyone have experience with using the Texas Land board route for a loan?


Did you ever get any feedback? Several people on here used that avenue including myself. I bought 11 acres this year smack in the middle of 1000 wooded acres. Got a 30 year fixed with 7% down and 7% interest. Life is good, as I have many critters that funnel through my property. Hope you had some good luck. the process seemed long to me but not much longer then buying my house. either way a good deal.

_________________________
Because We Can!


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#2214223 - 03/30/11 09:38 AM Re: question about buying land... [Re: Chief Q]
Mission Design Build Offline
Green Horn

Registered: 03/30/11
Posts: 1
Loc: Texas, Highland Vig.
Chief
Is that a bobcat or lynx pic?
We use to see both on our East Texas land but mostly fox now.



Edited by Mission Design Build (03/30/11 09:39 AM)
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Bruce

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#2214563 - 03/30/11 12:06 PM Re: question about buying land... [Re: Mission Design Build]
lakewaydr50 Offline
Pro Tracker

Registered: 07/20/07
Posts: 1892
Loc: Barney Lake WMA, Texas
I've been looking too..thinking about a property that is nothing but swamp, but it will do exactly what I am wanting and that is a waterfowl property......I've been looking at it for about a year. It has $27k in harvestable timber and if I can buy it, I was thinking about putting it in some sort of conservation program as well and it is big enough that I could probably lease part of it out to guides and waterfowl hunters.. I can do almost any down payment but I'd like to at least have a 20 year note. Also, my wife and I are talking about buying a foreclosed home in the town my son is attending college as well to help out on expenses of college. We plan to buy something 3/2 or better bed/bath, and put him in one bedroom and rent the other two or more out to other students, basically paying for his housing and maybe even make a little profit. If this works out we will buy more houses to rent to students by the bedroom..... The catch 22 to the whole thing is I need for one property purchase to facilitate the other. In other words I'd like to walk away from closing on one deal with enough money to pull off the other purchase. It's a long shot I figure but if I have to choose between the two purchases I'll go with the house first. I figure that will eventually create an opportunity to buy a recreational property if we keep at it.

_________________________
Isaiah 40:31 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles, they will run and not grow weary, they will walk and not be faint."

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#2302054 - 05/10/11 02:39 PM Re: question about buying land... [Re: lakewaydr50]
jdickey Offline
Veteran Tracker

Registered: 01/10/07
Posts: 3334
Loc: Waco, Texas
What kind of financing is being done on higher priced farm or ranch lands, say in excess of $450,000. The tpical 20% DP is a hefty figure, as well as conventional mortgages of 25-30 years. Are "balloon notes" still being done on the higher priced properties?

The smaller 300 to 500 acres farm/ranch at $1000 to $1500 per acre are fairly common, but who is doing fincancing for these type places?

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Pro Staff Member - retired


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#2302110 - 05/10/11 02:59 PM Re: question about buying land... [Re: jdickey]
JJH Online   content
Veteran Tracker

Registered: 10/03/06
Posts: 3118
Loc: Katy
these guys can probably answer all your questions:

http://www.capitalfarmcredit.com/


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#2304178 - 05/11/11 12:25 PM Re: question about buying land... [Re: JJH]
jdickey Offline
Veteran Tracker

Registered: 01/10/07
Posts: 3334
Loc: Waco, Texas
Originally Posted By: JJH
these guys can probably answer all your questions:

http://www.capitalfarmcredit.com/


Thanks, I'll give them a call too. They are just up the road from Texas Land Bank here in Waco.

_________________________
Pro Staff Member - retired


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#2332236 - 05/25/11 08:10 AM Re: question about buying land... [Re: jdickey]
Art Wallace Offline
Outdoorsman

Registered: 04/04/11
Posts: 81
Loc: El Paso, TX
Okay, ya'll...I'm sure you've had this question already, but I'm really really curious. I'm currently Active Duty Army and am here in Afghanistan. I've really thought about buying a tract of land to go hunting on and also to someday pass on to my daughter.

The issue is that I don't have a huge nestegg to pay a 20 or 10 percent down payment. Does anyone know of any programs out there that will allow me to buy for 0% down or somewhere close to that? I've bought a house with VA help, but it seems the land situation is quite a bit difficult. Thanks for any info anyone can provide.

Art

_________________________

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#2332272 - 05/25/11 08:39 AM Re: question about buying land... [Re: Art Wallace]
JJH Online   content
Veteran Tracker

Registered: 10/03/06
Posts: 3118
Loc: Katy
Art: Check out the Texas Veterans Land board. they provide low interest loans to vets for buying land, and only require 5% down.

http://www.glo.texas.gov/vlb/index.html

Thanks for your service, and Godspeed.


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#2332336 - 05/25/11 09:14 AM Re: question about buying land... [Re: JJH]
Art Wallace Offline
Outdoorsman

Registered: 04/04/11
Posts: 81
Loc: El Paso, TX
Thanks JJH. I appreciate the info!

_________________________

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#2361498 - 06/09/11 07:17 PM Re: question about buying land... [Re: Hunter_Man]
Jack Wright Offline
Light Foot

Registered: 06/09/11
Posts: 30
Loc: Texas,
I sell land for hunting as aprofession. i wont try to push anything on anyone but if youd like my number ask me and i will give it to you. The Texas Vet Loan has a current down 5% but is a layered loan. The first 20k is at a low rate. The next layers are also 20K until you reach a max of 80k and they are at market rate. There are banks depending on where you buy that require less than 20% down but its usually no less than 15%. 20% down is the standard. The few exceptions are owner financed property.
Hope that helps.


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#2454734 - 07/26/11 02:32 AM Re: question about buying land... [Re: JJH]
TallTines&Pines Offline
Outdoorsman

Registered: 07/24/11
Posts: 65
Loc: East Tx
Yes this sounds about like the best deal available. I am also lookin gfor property at the moment and am using Tx ag loans. They have different regional offices all over the state. They also pay Dividends on there loans. about 7 to 7.7 for 20 years with 20% down is normal. Cant get out of the down payment unless you are buying ADJOYING land. If this is the cae you can put up your own property as a down payment. The shorter the term loan 5 yrs 7 yr 10 yr. The better the interest rate.


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#2454739 - 07/26/11 02:49 AM Re: question about buying land... [Re: TallTines&Pines]
TallTines&Pines Offline
Outdoorsman

Registered: 07/24/11
Posts: 65
Loc: East Tx
I see a lot of people on here looking for property. I want to know if people are being realistic in the fact that a monthly payment of this size is very large. Dont get in over your head and put a strain on yourself and your family.


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#2458958 - 07/27/11 03:25 PM Re: question about buying land... [Re: TallTines&Pines]
Jack Wright Offline
Light Foot

Registered: 06/09/11
Posts: 30
Loc: Texas,
yes buying land is for those in the position to do so and to have an investment that pays off down the road. Leasing is much less expensive and thats the thing stay within budget as you said


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#2505074 - 08/14/11 11:24 PM Re: question about buying land... [Re: JJH]
jt44 Offline
Outdoorsman

Registered: 08/13/11
Posts: 59
Loc: Texas
There are new loan programs out there. I own a company that sells ranches. If you have any other questions feel free to email me at justin@texasselectproperty.com Be happy to help. Just sold a ranch in Freer with 10 percent down


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#2505077 - 08/14/11 11:27 PM Re: question about buying land... [Re: JJH]
jt44 Offline
Outdoorsman

Registered: 08/13/11
Posts: 59
Loc: Texas
I own a company that sells ranches. There are new programs out there. Just sold a ranch in Freer with 10 percent down. If you have any other questions feel free to email me justin@texasselectproperty.com
Be happy to help


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#2533229 - 08/25/11 03:21 PM Re: question about buying land... [Re: No-Tox]
Lugar Offline
Light Foot

Registered: 08/20/11
Posts: 33
Loc: Flint, TX
Check with a company Called Farm Credit Services. I have a land loan with them for 20yrs at 5.8% Closed this loan last yr and had to put 20% down. I am not sure what they have in TX as our land was in IL.


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#2549198 - 08/31/11 09:41 AM Re: question about buying land... [Re: JJH]
Frontgate Properties Offline
Light Foot

Registered: 04/07/10
Posts: 24
Selling land it what my company specializes in and most of this thread is very true. Both Texas land bank and capital farm pay dividends. Both are going to require 20% down but the rates can vary depending on how you structure the loan. I can tell you that it is getting much harder to purchase land than a home. But there are other options available, like splitting between owner financing and a bank loan. I would suggest to anyone that they take every possible tax exemption they can and make sure to check out what exemptions the property has before purchasing it. Some exemptions around here can take records from up to five years to get the exemptions. If you have any questions about purchasing land feel free to PM me or give me a call. Im never to busy to talk to a fellow hunter!! Trey 254-715-5671

_________________________
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Trey Holdbrook
Cell 254-715-5671
trey@texasfrontgate.com
www.texasfrontgate.com

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#2611220 - 09/26/11 09:58 AM Re: question about buying land... [Re: Frontgate Properties]
Erathkid Offline
THF Celebrity

Registered: 01/19/11
Posts: 10363
Loc: Dollas,Taxes Bluff Dale Tx
Lots of good info above,I also am a realtor that specializes in land transactions.One thing I will say is just because you have endangered species on your land DOES NOT mean you can't hunt it.We own 3 places in hill country and 1 in North central Texas and all of them are considered Golden-cheeked warbler habitat,no problem at all.

_________________________
Life's too short to sweat the small stuff

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#2611229 - 09/26/11 10:01 AM Re: question about buying land... [Re: Erathkid]
Erathkid Offline
THF Celebrity

Registered: 01/19/11
Posts: 10363
Loc: Dollas,Taxes Bluff Dale Tx
Don't shoot Golden-cheeked warblers or black capped vireo's and you'll be fine.

_________________________
Life's too short to sweat the small stuff

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#2668409 - 10/16/11 10:49 PM Re: question about buying land... [Re: JJH]
jram512 Offline
Light Foot

Registered: 10/11/11
Posts: 39
Call Bobby Priestly in Lcokhart Tx at first lockhart national bank. He got me a very nice deal on a ranch loan.


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#2698404 - 10/27/11 04:30 PM Re: question about buying land... [Re: jram512]
firesheriff Offline
Light Foot

Registered: 10/24/11
Posts: 45
Loc: Harris Co., Texas
I didn't know about the Wildlife exemption when my Ag exemption went away. Can anyone recommend a company to get the process started for Wildlife Exemption?
I called one and they wanted $5,000.00 in attoreny fees alone!

Thanks
Robert


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#2722291 - 11/04/11 06:53 PM Re: question about buying land... [Re: Erathkid]
jnd59 Offline
Outdoorsman

Registered: 09/11/10
Posts: 90
Originally Posted By: Erathkid
Lots of good info above,I also am a realtor that specializes in land transactions.One thing I will say is just because you have endangered species on your land DOES NOT mean you can't hunt it.We own 3 places in hill country and 1 in North central Texas and all of them are considered Golden-cheeked warbler habitat,no problem at all.


Correct Erathkid, but there are instances of land owners being limited in the use of their land due to the presence of endangered species. Habitat conducive to an endangered species is not the criteria. Presence of the endangered species is. For instance, I looked at a piece of property in Somervell county that did not have black cap virios (sp?) on it but did have that certain tree that they nest, live and exist off of. While there were no current restrictions to using that property, if they were discovered to be present, it could have prohibited me from doing any activty that would harm or harass them, including firing a weapon. I'm not saying you should not purchase land that has habitat conducive to an endangered species but it should be considered.



Edited by jnd59 (11/04/11 06:54 PM)

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#2755249 - 11/15/11 02:25 PM Re: question about buying land... [Re: jnd59]
Erathkid Offline
THF Celebrity

Registered: 01/19/11
Posts: 10363
Loc: Dollas,Taxes Bluff Dale Tx
Gotcha.They nest in chest high scrub oak's,lacy,vacy oaks.Black capped vireo's,what black capped vireos?

_________________________
Life's too short to sweat the small stuff

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#2779607 - 11/23/11 03:15 PM Re: question about buying land... [Re: txhunter24]
JunctionGuy Offline
Green Horn

Registered: 06/30/06
Posts: 5
Talk with your real estate agent but I think you need to find a piece of property with the agricultural exemption in place at the time you purchase it for tax purposes. Most Texas counties require 5 years of running livestock before you can establish the exemption if it is not in place when you purchase the land. The agricultural exemption is not technically an exemption. It is an assessment valuation based on agrucultural use. Landowners may apply for special appraisal based on their land's productivity value rather than market value. Typically, a productivity value is lower than market value, which lowers property taxes. Landowners must use their land in agriculture. There is a rollback tax for taking such land out of its productivity use.

Property owners may qualify for agricultural appraisal if land meets the following criteria:


The land must be devoted principally to agricultural use. Agricultural use includes producing crops, livestock, poultry, fish, or cover crops. It also can include leaving the land idle for a government program or for normal crop or livestock rotation. Land used for raising certain exotic animals (including exotic birds) to produce human food or other items of commercial value qualifies.


Using land for wildlife management is an agricultural use, if such land was previously qualified open-space land and is actively used for wildlife management. Wildlife management land must be used in at least three of seven specific ways to propagate a breeding population of wild animals for human use.


Agricultural land must be devoted to production at a level of intensity that is common in the local area.


The land must have been devoted to agricultural production for at least five of the past seven years. However, land within the city limits must have been devoted continuously for the preceding five years, unless the land did not receive substantially equal city services as other properties in the city.

If land receiving an agricultural appraisal changes to a non-agricultural use, the property owner who changes the use will owe a rollback tax. The rollback tax is due for each of the previous five years in which the land received the lower appraisal. The rollback tax is the difference between the taxes paid on the land's agricultural value and the taxes paid if the land had been taxed on its higher market value. Plus, the owner pays 7 percent interest for each year from the date that the taxes would have been due.

See link below for wildlife exemption:

http://www.tpwd.state.tx.us/landwater/land/private/agricultural_land/


Hopes this helps


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#2805972 - 12/03/11 11:59 AM Re: question about buying land... [Re: JunctionGuy]
Erathkid Offline
THF Celebrity

Registered: 01/19/11
Posts: 10363
Loc: Dollas,Taxes Bluff Dale Tx
Junction guy,great post and welcome. welcome

_________________________
Life's too short to sweat the small stuff

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#2807625 - 12/04/11 06:35 AM Re: question about buying land... [Re: JJH]
Star Offline
Green Horn

Registered: 12/03/11
Posts: 2
Here are some general tips on how to buy land article. http://www.thelandblog.com/2008/10/land-buying-information-and-tips.html


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#2813161 - 12/05/11 09:14 PM Re: question about buying land... [Re: Star]
BITRCLNGR Offline
Light Foot

Registered: 11/20/10
Posts: 22
Loc: Longview, TX
Great thread! I've got land fever right now, and I'm trying to better educate myself on the subject before I rush out and make a bad decision.

I'm not even 1/4 the way through this book (link below), and it is already worth every penny I paid for it.

If you are wanting the in's and out's and the do's and dont's of buying land, and every other aspect often overlooked (like water wells and the due diligence involved, which is the chapter I'm currently on), this book is for you. Written by a real estate attorney who has owned rural properties for four decades and helped countless clients with their real estate transactions. This book is the fourth edition.

http://www.amazon.com/Finding-Buying-You...0447&sr=8-1

_________________________
"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery." -Winston Churchill

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#2957048 - 01/24/12 03:00 PM Re: question about buying land... [Re: BITRCLNGR]
LSU Offline
Pro Tracker

Registered: 09/20/06
Posts: 1220
Loc: Houston
Place the land in a seperate trust from your other assets. If anything were to happen on your property and somebody sued you, they could not tap into other assetts that were not in that trust.

just my .02

_________________________
"wack 'em, stack 'em, pack 'em

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#2966678 - 01/27/12 04:48 PM Re: question about buying land... [Re: LSU]
Nogalus Prairie Online   content
THF Celebrity

Registered: 11/22/10
Posts: 11257
Loc: Corsicana
Finding the right land is very time consuming and buying land is a big commitment. Most people do not realize the 'carrying" costs and fail to factor them in prior to purchasing.

IMO the banks with their tighter lending policies are inadvertently doing most people a favor by making them prove their commitment by coming up with a hefty down payment.

Simply put,do not make the commitment until:1)you know you are able and are not just fooling yourself and 2)you are willing to forego other things you could do with the money spent servicing a land note. And make sure what you buy fits your needs. Worst thing ever is being financially bound to a piece of property you don't want.

Having said all that, I got extremely lucky and was able to buy some property that suited me to a "T". It was a big commitment but I have enjoyed having it more than anything I have ever owned. There is absolutely no substitute for knowing the land you are walking on belongs to you and all that comes with that.

Good luck to all you guys thinking about making the plunge!





Edited by Nogalus Prairie (01/27/12 04:49 PM)
_________________________

Originally Posted By: swmays
Life has a way of scattering your chickens on occasion.



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#2995404 - 02/07/12 06:20 PM Re: question about buying land... [Re: JJH]
NockedUp Offline
Woodsman

Registered: 11/16/11
Posts: 111
Loc: Cass County
I have bought and sold land and timber for a living since 1992 and worked as a petroleum landman for the last 6. Those are my credentials, here is my advice:

1) I agree with those who suggested Texas Land Bank. Its been my experience that the "land banks", "farm banks" and "ag banks" give the best rates, longest terms and lowest down payments. Shop around!

2) Get an ag or timber exemption to pay the least amount of taxes (I am not familiar with the "wildlife exemption"). The tax assessor/collector will be glad to provide the information you need for exemptions. All of the exemptions have some "requirements" but most are not difficult and none require you to spend massive amounts of cash to fill the requirements. I, or any other forester, can write you a timber plan sufficient for tax purposes in 20 minutes.

3) No insurance on the "dirt". You can buy insurance on any crops, including timber, growing on property, but its EXPENSIVE!

4) see next post - this is getting long


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#2995419 - 02/07/12 06:25 PM Re: question about buying land... [Re: NockedUp]
NockedUp Offline
Woodsman

Registered: 11/16/11
Posts: 111
Loc: Cass County
4) Mineral rights may or may not be included. Most title companies, which you will use for closing if you borrow the funds, will NOT provide any information on mineral rights. These will have to be searched in the county records. (PM me for more info on this - massive amount of information)

5) Title insurance - you will also pay for this at closing if you borrow the money. The title company will also check for liens, back taxes, judgements, etc. that encumber the property.

6) DON'T SIGN ANYTHING IF YOU ARE NOT SURE!! Again, DONT SIGN ANYTHING IF YOU ARE NOT SURE!

good luck!


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#2995438 - 02/07/12 06:29 PM Re: question about buying land... [Re: NockedUp]
NockedUp Offline
Woodsman

Registered: 11/16/11
Posts: 111
Loc: Cass County
Last advice, buy land with road frontage. County road, city street, farm to market highway, etc - it doesnt matter. Easements (the right to travel across someone elses property) are ALWAYS a problem! (well not always, but I advoid them if at all possible)


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#2995442 - 02/07/12 06:29 PM Re: question about buying land... [Re: NockedUp]
NockedUp Offline
Woodsman

Registered: 11/16/11
Posts: 111
Loc: Cass County
PM me if you have more questions - I keep thinking of things to post ha


good luck


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#2999949 - 02/09/12 10:01 AM Re: question about buying land... [Re: NockedUp]
microsuck Offline
Green Horn

Registered: 11/18/11
Posts: 1
My grandmother has been letting me hunt on a 360 acre parcel of unimproved land she owns for free. She is 91 and may not be with us much longer. She suggested I purchase the land before she dies and it goes to probate in her will to be devided among the 3 daughters.

Based on reading all 7 pages, I do not want to attempt to have a bank finance the property. My mother suggested an "owner finance". My grandma and I would figure out the sale price and payments. The payments would just go into her estate to be distributed amongst the heirs. I can afford the property, but dont want to deal with the hastle of bank financing.


I have never heard of this. Is this a common practice for intra-family land sells? And what else do I need to know (specific to the owner finance)?


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#3030428 - 02/20/12 12:35 PM Re: question about buying land... [Re: microsuck]
txtrophy85 Online   content
THF Celebrity

Registered: 08/12/05
Posts: 19416
Originally Posted By: microsuck
My grandmother has been letting me hunt on a 360 acre parcel of unimproved land she owns for free. She is 91 and may not be with us much longer. She suggested I purchase the land before she dies and it goes to probate in her will to be devided among the 3 daughters.

Based on reading all 7 pages, I do not want to attempt to have a bank finance the property. My mother suggested an "owner finance". My grandma and I would figure out the sale price and payments. The payments would just go into her estate to be distributed amongst the heirs. I can afford the property, but dont want to deal with the hastle of bank financing.


I have never heard of this. Is this a common practice for intra-family land sells? And what else do I need to know (specific to the owner finance)?


be glad you have a grandma that is willing to do that!

i would set up an escrow account to be deposited directly quarterly that pays out to her estate.

you can buy the property owner finance, get with a good title company and have a real estate lawyer draft up a contract.

they will handle all the paperwork.


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#3044532 - 02/25/12 01:21 PM Re: question about buying land... [Re: firesheriff]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
Originally Posted By: firesheriff
I didn't know about the Wildlife exemption when my Ag exemption went away. Can anyone recommend a company to get the process started for Wildlife Exemption?
I called one and they wanted $5,000.00 in attoreny fees alone!

Thanks
Robert


You have to have Ag Exemption in place in order to get a wildlife exemption.


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#3044540 - 02/25/12 01:25 PM Re: question about buying land... [Re: cameron00]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 7185
Loc: Texas
Agree with texastrophy85 on the grandma deal.

Once you've signed the contract allowing owner finance of the land with your grandma, the terms cannot be altered by her estate.

Get that taken care of asap. If you wait much longer, her direct heirs could probably successfully argue that the contract was signed when she wasn't in right mind to enter into a legally binding contract (the elderly are often taken advantage of, even by their own families).


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#3046269 - 02/26/12 12:25 PM Re: question about buying land... [Re: cameron00]
armadillophil Online   happy
Outdoorsman

Registered: 09/28/06
Posts: 63
I have done conversion of ag to wildlife and it really is pretty simple.


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#3056713 - 03/01/12 02:15 PM Re: question about buying land... [Re: cameron00]
txtrophy85 Online   content
THF Celebrity

Registered: 08/12/05
Posts: 19416
Originally Posted By: cameron00
Get that taken care of asap. If you wait much longer, her direct heirs could probably successfully argue that the contract was signed when she wasn't in right mind to enter into a legally binding contract (the elderly are often taken advantage of, even by their own families).


agree 100%

do this right now if you haven't done it already


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#3085355 - 03/12/12 10:01 PM Re: question about buying land... [Re: txtrophy85]
leswad Online   content
Bird Dog

Registered: 11/30/09
Posts: 299
Loc: Miserableplex
As a new land owner myself there is a lot of good information in this thread. One thing I would recommend is not just looking at the price per acre, but the improvements to the property such as house, water, electric, fence line, cleared timber and tanks or lakes. Dozer work generally runs 75 to 100 per hour and a large lake cost big $$. You will also need to consider the cost to maintain the property and tractors are not free. After you purchase your place you will drive by other ranches and appreciate nice fences and beautiful pastures


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#3119787 - 03/27/12 02:08 PM Re: question about buying land... [Re: JJH]
newulmboy Offline
Tracker

Registered: 03/20/12
Posts: 583
Loc: New Ulm, TX
Im looking at buying land right now. My hometown bank is offering 6.4% 15yr , but refinance after 7yrs. Is that bad? It was 6% two months ago, just wish i would have found something months ago.


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#3133786 - 04/02/12 09:51 PM Re: question about buying land... [Re: newulmboy]
WME Offline
Green Horn

Registered: 04/02/12
Posts: 1
Loc: El Campo, Texas
Just found this forum and this thread and had to reply. There is some really good information posted here. I'm a certified wildlife biologist and real estate broker. I just recently started a new blog dedicated to wildlife management and hunting properties. This forum has given me some great ideas for future articles. Below are a few blog post that I hope may be informative. Please feel free to PM, email, or give me a call.

http://erwildlifeme.wordpress.com/2012/0...a-prerequisite/

http://erwildlifeme.wordpress.com/2012/0...rty-should-ask/

http://erwildlifeme.wordpress.com/2012/0...ing-properties/

http://www.wildlifeme.com
http://erwildlifeme.wordpress.com
eritter@wildlifeme.com



Edited by WME (04/02/12 09:55 PM)
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#3220552 - 05/12/12 01:22 PM Re: question about buying land... [Re: Hunter_Man]
londontexas Offline
Green Horn

Registered: 05/12/12
Posts: 8
I used Capital Farm Credit...they were great...financing similar to a house...

If you are going to have people out to hunt, 4 wheel, etc. get an umbrella liability policy.

Best advice I can give you: if the property doesn't have water and electricity find out what it will cost to get both. They can be a huge cost.


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#3309965 - 06/20/12 08:36 PM Re: question about buying land... [Re: Hunter_Man]
WhitetailProperties Offline
Outdoorsman

Registered: 06/01/12
Posts: 91
Check out www.whitetailproperties.com for all your hunting and ranch land needs!

Our Land Specialists are hand selected based upon their individual expertise within the real-estate, hunting land management, and farming trades. They share a passion for the outdoors and have a firm understanding of how to show hunting and ranch land while explaining the benefits of land ownership.

_________________________

www.whitetailproperties.com
Want to work for Whitetail Properties Real Estate?
Send resume/cover letter to texascareer@whitetailproperties.com

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#3316656 - 06/23/12 12:48 PM Re: question about buying land... [Re: JJH]
GuidedHunter Offline
Woodsman

Registered: 03/19/12
Posts: 213
Loc: Fort Worth, Texas
Hey bud, If you find the right property you might not even need to get a big loan. I work for Mossy Oak Properties of Texas and I am constantly running into little stuff that is already Ag Exempt. If you are willing to go smaller like under 100 Ac you might be able to buy something for under a 100K. it seems that everyone got hung up on the financing but for the most part it is very similar to buying a house. However, do not have the real-estate agent that helped you buy your house help you buy a ranch. That is my biggest tip, a home Realtor can seriously muck up a farm and ranch deal.

Also, do what Ekdahl said and go to a bank that specializes in rural real-estate. They are Way more helpful.

_________________________
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Home and office energy upgrades through LED technology.

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#3514269 - 08/26/12 07:08 PM Re: question about buying land... [Re: GuidedHunter]
Lanepilot Offline
Outdoorsman

Registered: 08/05/11
Posts: 73
Having just purchased 100+ acres recently, my advice is to offer considerably less than the asking price. I was very surprised to close my deal for 75% of the original asking price, on what already looked like a very good deal. The guy was just ready to sell it after no offers for a relatively long time.
_________________________
Best regards,
Randy Cooper

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#3631995 - 10/04/12 10:06 AM Re: question about buying land... [Re: Lanepilot]
TXMachinist Offline
Pro Tracker

Registered: 09/10/08
Posts: 1311
Loc: lewisville, texas
So, I am thinking of buying some hunting land in my name and then leasing half of it back to my company(I own it) for hunting. My question is, can I take money out of my retirement for a down payment? If it has a house on it wouldn't it be considered a second home and therefore I would not have to pay a penalty on the money coming out of my retirement? Does anyone know the answer? I plan on meeting with my CPA about it also. I need to do this before the land prices start going up again. Thanks for any info.
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#3823942 - 12/07/12 03:31 AM Re: question about buying land... [Re: Hunter_Man]
ryanharris Offline
Light Foot

Registered: 12/07/12
Posts: 28
Loc: Killeen, Texas
Originally Posted By: Hunter_Man
Next year possibly, I may be looking to buy my first piece of land. I have a few questions that i was wondering if someone on here can help me with.

1. is the overall process similar to buying a house?
2. i have EXCELLENT credit, but have heard that securing loans for land are much harder. is this true? what can i expect for a good interest rate?
3. does the land have to be insured, if there are no structures on it? i mean, like monthly insurance?
4. any other info on the process would be great!


I would suggest you to consult a Realtor in your area. He will help you throughout the land buying process.
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#3823958 - 12/07/12 05:16 AM Re: question about buying land... [Re: ryanharris]
Sparky45 Offline
Tracker

Registered: 08/02/12
Posts: 910
Loc: Taylor County
Wow this thread is almost 3 yrs old

FWIW I bought my place by looking up the owner on the tax rolls

He lived out of town and we worked out a deal between us with no real estate agent
it was nice just dealing direct with out the agent being a go berween
we mutually picked a lawyer to do the close and I covered myself by making him by a deed policy and I got a survey and appraisal
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#3875637 - 12/22/12 03:54 PM Re: question about buying land... [Re: Sparky45]
ButQuack Offline
Woodsman

Registered: 12/06/11
Posts: 118
Loc: DFW
Good info. I am not a vet but my dad is. He loves the vet loans bc you can get a 30yr fixed note on land. Owner financing is another great way to go if the documents are drawn up properly.

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#3953957 - 01/14/13 11:23 PM Re: question about buying land... [Re: ButQuack]
13cam13 Online   content
Outdoorsman

Registered: 01/13/13
Posts: 64
Loc: South Texas
My wife and I are looking into buying some land in south texas, in the near future. We are new to buying land for hunting, so my questions are is there any cons with owner financing than going through a bank? What's the lowest offer should I begin with on a ranch for example, a ranch that is for sale at 170,000? And how motivated are ranch sellers?

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#4016848 - 02/02/13 12:26 AM Re: question about buying land... [Re: JJH]
Gator10 Offline
Light Foot

Registered: 11/30/12
Posts: 26
Loc: Houston
Awesome thread! Trying to establish my knowledge base so I can buy smart in near future. Thanks for great insight!

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#4086960 - 02/27/13 10:41 AM Re: question about buying land... [Re: Gator10]
wan2hunt/fish Offline
Woodsman

Registered: 12/27/04
Posts: 179
Loc: collin county, tx
I got tired of trying to find deer leases..getting screwed on the cost etc so I recently bought my own 40 acre hunting property.its not huge but 75% hardwood and cedar and has never been touched. 100s of surrounding acreage untouched as well. I was surprised that the landowner was willing to do owner finance with the right amount down.very easy transaction and I'm excited at never having to look for a place to hunt. good luck to you future land owners.

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#4100898 - 03/05/13 09:14 AM Re: question about buying land... [Re: wan2hunt/fish]
snoopy Online   content
Veteran Tracker

Registered: 03/22/12
Posts: 2270
A question regarding the Ag exemption, tax rollback: Let's say someone bought land a few years ago having the Ag exemption and suddenly decided he was going to turn his property away from crops and cattle and into a paintball Extravaganza :-D Anyway, he contacts the appraisal office and indicates the land would no longer be used for agriculture. As soon as the land appraisal status is changed, would the land owner be liable for the rollback of the few years, even though the land had legitimately been used for agriculture previously? The piece I read was a bit confusing to me in the wording. Thanks....

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#4122778 - 03/15/13 08:34 AM Re: question about buying land... [Re: snoopy]
Lanepilot Offline
Outdoorsman

Registered: 08/05/11
Posts: 73
I think it's pretty clear in the information on the Texas Comptroller's website. If the property use is changed from agriculture to non ag use, you will lose the AG valuation exemption. When that happens, you pay the rollback tax for the previous 5 years. The rollback is the difference between the taxes that were paid, and what would have been paid without the exemption each year. They also tack on 7% interest per year for the taxes that would have been paid.

You might want to consider only changing a small part of the property to Non-AG use, unless the roll back taxes are pretty small.
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#4161715 - 04/02/13 08:44 AM Re: question about buying land... [Re: Lanepilot]
brent1 Offline
Bird Dog

Registered: 02/22/12
Posts: 405
Loc: wylie,tx
If you are buying land and paying cash what all closing costs would be involved besides broker fees,title ins., survey fee. Im sure there is a nickel anddime list of fees? As a buyer what all would you try to push off on seller?

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#4161750 - 04/02/13 08:52 AM Re: question about buying land... [Re: brent1]
txtrophy85 Online   content
THF Celebrity

Registered: 08/12/05
Posts: 19416
Originally Posted By: brent1
If you are buying land and paying cash what all closing costs would be involved besides broker fees,title ins., survey fee. Im sure there is a nickel anddime list of fees? As a buyer what all would you try to push off on seller?


who pays the closing costs are negotiable.

typcially the seller pays his poriton and the buyer pays his. seller typically pays for the title policy.

and your right, there is a nickle and dime list of fees. they will be described in your HUD statement

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#4161765 - 04/02/13 08:56 AM Re: question about buying land... [Re: snoopy]
Navasot Online   content
Natty Love
THF Celebrity

Registered: 09/22/11
Posts: 18048
Loc: Normangee/Navasota TX
Originally Posted By: snoopy
A question regarding the Ag exemption, tax rollback: Let's say someone bought land a few years ago having the Ag exemption and suddenly decided he was going to turn his property away from crops and cattle and into a paintball Extravaganza :-D Anyway, he contacts the appraisal office and indicates the land would no longer be used for agriculture. As soon as the land appraisal status is changed, would the land owner be liable for the rollback of the few years, even though the land had legitimately been used for agriculture previously? The piece I read was a bit confusing to me in the wording. Thanks....




Let the cows stay.... would just be extra cover for the paintballers....
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#4168817 - 04/04/13 08:04 PM Re: question about buying land... [Re: Navasot]
brent1 Offline
Bird Dog

Registered: 02/22/12
Posts: 405
Loc: wylie,tx
Since the tax office is closed for the day anybody have any info on how much acreage in collin county to qualify for ag? I was thinking 10 acres unless you have a home on property then its 11. Just curious and couldnt find on website and im sure i want get a call back till next week.

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#4172199 - 04/06/13 06:41 PM Re: question about buying land... [Re: brent1]
Minotphil Offline
Woodsman

Registered: 04/06/13
Posts: 136
Loc: S.E. Texas, N.D.

Texas land prices and ROI over time factored for inflation.

http://recenter.tamu.edu/data/rland/


Edited by Minotphil (04/07/13 08:55 AM)

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#4417586 - 07/24/13 04:13 PM Re: question about buying land... [Re: Minotphil]
kry226 Offline

Tracker

Registered: 01/11/09
Posts: 877
Loc: Kansas
That's a neat site.

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#4444866 - 08/03/13 04:13 PM Re: question about buying land... [Re: Hunter_Man]
bsbeantx Offline
Green Horn

Registered: 08/03/13
Posts: 1
Recently purchased 26 acres in east texas. Mostly hills and valleys all wooded with thick underbrush.

Problem is even with the boundary survey, I can't tell where the property lines are. All the corners are marked but the surveyor didn't make cut throughs or put stakes in between the points.

The property is somewhat shaped like a triangle with one side being 2227' long! How can I accurately establish lines between the points?

Thanks!

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#4485854 - 08/16/13 06:36 PM Re: question about buying land... [Re: bsbeantx]
olducker Offline
Outdoorsman

Registered: 12/31/09
Posts: 82
Ok let me warn you about another issue. I have land I purchased about 14yrs ago. I made improvements cabin lake etc. I am now being sued by some people claiming my title is not good. This land was purchased from the president of the county realty board. It was a tract out of a 5700acre ranch he owned. I used a reputable and local title company and received a survey. If I lose this lawsuit I will be paid what I paid for the property from the title insurance company. There will be no repayment for the improvements. The plaintiffs have no real assets so counter suing is useless. I can not sell my land until I settle the suit. It is a year since their filing and I still do not know what their basis of claim is. I am having to pay a lawyer out of my pocket because the title co. lawyers may chose to just pay me and be done if it is cheaper.
Anybody with 200 dollars can jack you up forever,,,, don't do it.. don't buy property
Oh by the way the guy I bought it from is dead and the title company is out of business

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#4488051 - 08/17/13 06:20 PM Re: question about buying land... [Re: olducker]
Slow Drifter Online   content

Veteran Tracker

Registered: 04/09/09
Posts: 2428
Loc: Central Texas
Wait a second...you have title insurance and you're still going through this? Unreal.


Edited by Slow Drifter (08/17/13 06:29 PM)
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#4500959 - 08/22/13 02:39 AM Re: question about buying land... [Re: olducker]
Edward22 Offline
Green Horn

Registered: 08/21/13
Posts: 5
Originally Posted By: olducker
Ok let me warn you about another issue. I have land I purchased about 14yrs ago. I made improvements cabin lake etc. I am now being sued by some people claiming my title is not good. This land was purchased from the president of the county realty board. It was a tract out of a 5700acre ranch he owned. I used a reputable and local title company and received a survey. If I lose this lawsuit I will be paid what I paid for the property from the title insurance company. There will be no repayment for the improvements. The plaintiffs have no real assets so counter suing is useless. I can not sell my land until I settle the suit. It is a year since their filing and I still do not know what their basis of claim is. I am having to pay a lawyer out of my pocket because the title co. lawyers may chose to just pay me and be done if it is cheaper.
Anybody with 200 dollars can jack you up forever,,,, don't do it.. don't buy property
Oh by the way the guy I bought it from is dead and the title company is out of business

When you loss the case its mean they will pay you the amount that is shown on your ownership document and they don't pay any amount of money for improvement.And some time they don't pay more than the value that written on that agreement.
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#4503609 - 08/22/13 09:08 PM Re: question about buying land... [Re: Edward22]
Wild Country Offline
Green Horn

Registered: 10/26/10
Posts: 5
Sorry to hear that , Edward. It's very rare for something like that to occur, thank God. Your title policy should cover the amount you paid for the property. Even if the title company is gone, the policy is underwritten by a large insurer. If you have a loan on the property, the lender will most likely get involved to protect their asset as well.

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#4503619 - 08/22/13 09:09 PM Re: question about buying land... [Re: bsbeantx]
Wild Country Offline
Green Horn

Registered: 10/26/10
Posts: 5
The best way is to have the surveyor come back out and set stakes for you.

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#4514364 - 08/26/13 06:28 PM Re: question about buying land... [Re: Wild Country]
olducker Offline
Outdoorsman

Registered: 12/31/09
Posts: 82
Surveyor/ set stakes??? it was surveyed originally. The suit is for a portion of the land. Aproximately 102 acres (refered to in veras spanish land grant term) out of 300. As stated I still don't know where on the parcel they contest the title. Right,, I have a title policy and it will pay what I paid for the land 14yrs ago with out improvements. Never mind the appreciation. I will also take it in the teeth if the land is split in two making the separated parcels worth less. I followed the rules of correct land purchase and still getting the shaft. There is no lender. I paid cash. There is no justice I bought land...

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#4522065 - 08/29/13 04:06 AM Re: question about buying land... [Re: olducker]
ken tx Offline
Green Horn

Registered: 09/01/11
Posts: 8
Loc: fayette county
nice thread, wish I had read it 15 years ago when I retired. remember one other thing, if you don't own the mineral rights you don't own anything but the right to pay taxes. one of the worst rip offs our politicians ever put on us, letting surface and mineral rights be seperated.

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#4605665 - 09/26/13 07:41 PM Re: question about buying land... [Re: ken tx]
71Rcode Offline
Woodsman

Registered: 11/17/08
Posts: 131
Loc: North DFW
agree with ken
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#4651121 - 10/11/13 03:44 PM Re: question about buying land... [Re: 71Rcode]
TX Hitman Offline
Outdoorsman

Registered: 10/12/11
Posts: 71
Loc: West Texas
Well......I know this thread is old but I found it very helpful in my research. I will finalize the paper work within a couple of weeks.

Here is what I learned during my purchase.

1. Land purchasing is way easier than buying a house. I didn't need a contract or any BS, we agreed on terms and shook hands.
2. Only use a realtor if that's your preference. You can find plenty of info by internet research and getting neighboring contacts from the land owner. Or go to the local coffee shop a few times and make conversation.
3. Any land that is advertised on a website, realtor, etc.... needs more detailed research. The land I purchased was only advertised by word of mouth. If a person is wanting to sell their place, they will tell people they know first. I found that, if land is listed, there is a reason why it hasn't sold yet.
4. Check the land around you for future buying availability. I will eventually have a chance to buy the land that surrounds my place, as three of the land owners are elderly. Because of the down payment, I have established equity. If I want to purchase that land, all the lender has to do is adjust the note/terms. Simple.
5. Deal with a farm lender co-op. Their specialty is land lending and they are the best at it. They offer the best rates and can close faster than a bank. I reached out to 4 banks, only one came close. Gave me the impression they really didn't want to mess with it. Plus I will get dividends within a couple of years.

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#4651659 - 10/11/13 06:35 PM Re: question about buying land... [Re: TX Hitman]
A_Phiend Offline
Light Foot

Registered: 02/27/13
Posts: 16
Wow, great thread and good timing...looking in to buying land myself. Thanks to all for sharing knowledge!

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