If you are like some folks...the uncertainty of the Stock Market combined with the Low Interest rates on CD's, Bonds, and other long tem investment
tools have made it hard to figure out where to invest your hard earned money and have both protection and opportunity for profit both in the short and long term.
May I suggest investing in agricultural Farm Land?
Typical annual Return on Investment is in the 4% to 8% per Year range and farmers are always looking for more ground to farm but not always to own.
Doesn't seem like a lot? Maybe you should take another look...it may not be fantastic return but it is steady, protected, and is as close to being a lock out there as any other low risk investment.
If you bought a 160 acres farm for $7,000/acre and rented the ground for $300/acre, that $1,120,000 investment will show an annual return of $48,000.
The tenant maintains the farm including all expenses for the crop, etc. You typically get paid either all up front at the start of the season or half then and half midway through crop year.
An added benefit is the continually rising Value of farm land. In the past 10 years it has more than doubled and in some areas tripled. Does that mean you missed the market? Not yet...you just have to be aware of where you can still get great property for a fair price with an excess of demand for farming the ground. One of those areas is central Nebraska Farm Ground. We have some fair priced land with a plethora of willing and waiting tenants.
But who would manage it you ask? There are three traditional types of Farm Managers...
1. A qualified and knowledgeable Real Estate Broker such as myself. You simply hire the Farm Manager to collect rents, pay property taxes and any other owner expenses from those rents, watch over the property to insure god stewardship of the land and no illegal activity occurs on the land, communicate with the tenant, manage the lease including fair and timely increases to rent amounts, etc. You simply get your rent check(s) and deposit them (keeping in mind it is a taxable income).
2. Self management...which is doable but a bit hard if you are living a distance away from property.
3. Hire an attorney who may or may not have farm knowledge and/or the time to be fully involved.
If you would like to talk with me confidentially regarding buying farm ground for investment, please call, text, or email me.
It is a relatively easy process and I know some fantastic ground that the farmer(s) want to sell and rent back from the investor on either a short term or long term lease. As I have mentioned for years...many, if not most, farm real estate is not advertised on the open market like a home is.
I know where the land is or where to look. As always, I do not get paid until the farm is purchased and I either get a professional service fee from the Seller or the Buyer depending on how the Investor wants to do it. Don't wait...contact me for you slice of Nebraska Farm ground.
Comments(0)