Best way to accumulate land for cattle.

[JMJ Farms]

Correct me if I'm wrong (I'm used to it my wife does it daily) but isn't the "bridge loan" where the fsa agrees to do the loan a then a local bank provides a "temporary loan" (guaranteed by the fsa) while the fsa loan is being "processed" (because it's quicker and it may prevent the buyer from losing the deal while waiting on the fsa loan).

Or am I way out in left field again?

 

[TexasBred]

A "bridge loan" is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property. Personally I can see no reason for ever needing one unless you're dealing with an impatient seller who's afraid he won't get his money. It doesn't do anything for the buyer except begin costing him money the minute he signs the note. Most buyers realize real estate loans seldom close in a couple of weeks especially when they are sizable loans and involve considerable acreage. Sometimes loans can be expedited but in most cases it takes several weeks to get all the documentation in the file, along with appraisal and survey (yep a new survey).

 

[ddd75]

A "bridge loan" is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property. Personally I can see no reason for ever needing one unless you're dealing with an impatient seller who's afraid he won't get his money. It doesn't do anything for the buyer except begin costing him money the minute he signs the note. Most buyers realize real estate loans seldom close in a couple of weeks especially when they are sizable loans and involve considerable acreage. Sometimes loans can be expedited but in most cases it takes several weeks to get all the documentation in the file, along with appraisal and survey (yep a new survey).

Even a cash loan is going to take weeks to close. Most farm loans should close in 4-6 weeks. Fsa. I guarantee will not.

Your market may not be as active as mine. Farms here are almost always auctioned or sell in weeks. Not even a Buddhist monk would wait the time it takes FSA in this market.

 

[TexasBred]

A "bridge loan" is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property. Personally I can see no reason for ever needing one unless you're dealing with an impatient seller who's afraid he won't get his money. It doesn't do anything for the buyer except begin costing him money the minute he signs the note. Most buyers realize real estate loans seldom close in a couple of weeks especially when they are sizable loans and involve considerable acreage. Sometimes loans can be expedited but in most cases it takes several weeks to get all the documentation in the file, along with appraisal and survey (yep a new survey).

Even a cash loan is going to take weeks to close. Most farm loans should close in 4-6 weeks. Fsa. I guarantee will not.

Your market may not be as active as mine. Farms here are almost always auctioned or sell in weeks. Not even a Buddhist monk would wait the time it takes FSA in this market.

All I can say is "They do around here". Maybe we're just not as eager to get our money as you are. Willing to lose 20 grand rather than be patient. BTW what the he// is a "cash loan"??

 

[ddd75]

A "bridge loan" is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property. Personally I can see no reason for ever needing one unless you're dealing with an impatient seller who's afraid he won't get his money. It doesn't do anything for the buyer except begin costing him money the minute he signs the note. Most buyers realize real estate loans seldom close in a couple of weeks especially when they are sizable loans and involve considerable acreage. Sometimes loans can be expedited but in most cases it takes several weeks to get all the documentation in the file, along with appraisal and survey (yep a new survey).

Even a cash loan is going to take weeks to close. Most farm loans should close in 4-6 weeks. Fsa. I guarantee will not.

Your market may not be as active as mine. Farms here are almost always auctioned or sell in weeks. Not even a Buddhist monk would wait the time it takes FSA in this market.

All I can say is "They do around here". Maybe we're just not as eager to get our money as you are. Willing to lose 20 grand rather than be patient. BTW what the he// is a "cash loan"??

You are so full of sh!t. No fsa land loan is closing in a month. Call any office in the USA and they'll tell you the same thing.

A cash loan is an equity line.

 

[JMJ Farms]

So.... What's the best way to accumulate land for cattle? :bang:

 

[tater74]

Ours was ready to close in 30-35 days. We delayed it for a few weeks due to unrelated issues.

Maybe you're just hard to deal with.

Having a survey saved us money because we stated $X/acre. The previous survey included the county road. That was money well spent.

 

[True Grit Farms]

So.... What's the best way to accumulate land for cattle? :bang:

Put your money into land instead of paper. And don't live above your means. The problem in today's society is that folks want it right now, no one or very few have to climb the mountain anymore. It seems like everything can be finance today, and no one saves for a rainy day. I guess I'm just getting old, dang it.

 

[JMJ Farms]

So.... What's the best way to accumulate land for cattle? :bang:

Put your money into land instead of paper. And don't live above your means. The problem in today's society is that folks want it right now, no one or very few have to climb the mountain anymore. It seems like everything can be finance today, and no one saves for a rainy day. I guess I'm just getting old, dang it.

"There is wisdom in your words of life" :tiphat:

 

[Jogeephus]

I wouldn't buy land for cattle. I'd buy land for the sake of having land as an investment and if cows could be used to cut maintenance costs and generate a little money I'd buy some cattle. If I wanted land for cattle I'd lease it. If you can't lease it for a reasonable amount then I'd re-think why I wanted cattle.

 

[JMJ Farms]

I wouldn't buy land for cattle. I'd buy land for the sake of having land as an investment and if cows could be used to cut maintenance costs and generate a little money I'd buy some cattle. If I wanted land for cattle I'd lease it. If you can't lease it for a reasonable amount then I'd re-think why I wanted cattle.

I have to rent because I can't make it pencil out for the cows to pay for it. In a couple years my residential rental properties will be paid for and that income should allow me to buy some land.

 

[hurleyjd]

I wouldn't buy land for cattle. I'd buy land for the sake of having land as an investment and if cows could be used to cut maintenance costs and generate a little money I'd buy some cattle. If I wanted land for cattle I'd lease it. If you can't lease it for a reasonable amount then I'd re-think why I wanted cattle.

I have to rent because I can't make it pencil out for the cows to pay for it. In a couple years my residential rental properties will be paid for and that income should allow me to buy some land.

Section eight housing?

 

[Jogeephus]

I wouldn't buy land for cattle. I'd buy land for the sake of having land as an investment and if cows could be used to cut maintenance costs and generate a little money I'd buy some cattle. If I wanted land for cattle I'd lease it. If you can't lease it for a reasonable amount then I'd re-think why I wanted cattle.

I have to rent because I can't make it pencil out for the cows to pay for it. In a couple years my residential rental properties will be paid for and that income should allow me to buy some land.

Unless you buy land dirt cheap, I can't see cattle ever paying for land and earning you a living. There is a lot of land available for cattle that can be rented cheap if you look close enough.

I knew where there was a 1000 acres an absentee landowner wanted someone to run cattle on just to keep the fields cut and the fences maintained. It was a perfect setup with ponds and fences the landowner's daddy had worked his life on. The son just wanted to keep it looking the same and money wasn't a factor. He even offered the place rent free for two years and after that he only wanted $25/acre for the improved pasture land. The rest would be free. Granted it did need some fence work and a couple of gates needed to be rehung but I couldn't find a soul to take him up on the deal so he planted pines on all the pastures. I guess its like True Grit said, too many just want everything today and don't want to invest their time or money.

This thought reminds me of some newbie that joined the board several years ago looking for a cattle job. I pm'ed him about one I knew of but his idea of working cattle was sitting on his horse and playing John Wayne and this isn't how we raise cattle in this area. As it turns out another young man with some work ethic took the job and several years later when the owner died she left the whole place to this fella lock stock and barrel. I've seen this happen twice in my life and each time it just shows me that some people love their cattle more than family - which I understand completely - but the would be heirs always seem pizzed for some reason.

 

[JMJ Farms]

I wouldn't buy land for cattle. I'd buy land for the sake of having land as an investment and if cows could be used to cut maintenance costs and generate a little money I'd buy some cattle. If I wanted land for cattle I'd lease it. If you can't lease it for a reasonable amount then I'd re-think why I wanted cattle.

I have to rent because I can't make it pencil out for the cows to pay for it. In a couple years my residential rental properties will be paid for and that income should allow me to buy some land.

Section eight housing?

No. No section 8 here. I keep the govt out of my business as much as possible.

 

[JMJ Farms]

I wouldn't buy land for cattle. I'd buy land for the sake of having land as an investment and if cows could be used to cut maintenance costs and generate a little money I'd buy some cattle. If I wanted land for cattle I'd lease it. If you can't lease it for a reasonable amount then I'd re-think why I wanted cattle.

I have to rent because I can't make it pencil out for the cows to pay for it. In a couple years my residential rental properties will be paid for and that income should allow me to buy some land.

Unless you buy land dirt cheap, I can't see cattle ever paying for land and earning you a living. There is a lot of land available for cattle that can be rented cheap if you look close enough.

I knew where there was a 1000 acres an absentee landowner wanted someone to run cattle on just to keep the fields cut and the fences maintained. It was a perfect setup with ponds and fences the landowner's daddy had worked his life on. The son just wanted to keep it looking the same and money wasn't a factor. He even offered the place rent free for two years and after that he only wanted $25/acre for the improved pasture land. The rest would be free. Granted it did need some fence work and a couple of gates needed to be rehung but I couldn't find a soul to take him up on the deal so he planted pines on all the pastures. I guess its like True Grit said, too many just want everything today and don't want to invest their time or money.

This thought reminds me of some newbie that joined the board several years ago looking for a cattle job. I pm'ed him about one I knew of but his idea of working cattle was sitting on his horse and playing John Wayne and this isn't how we raise cattle in this area. As it turns out another young man with some work ethic took the job and several years later when the owner died she left the whole place to this fella lock stock and barrel. I've seen this happen twice in my life and each time it just shows me that some people love their cattle more than family - which I understand completely - but the would be heirs always seem pizzed for some reason.

Jo, you're dead on. I can rent much cheaper than I can buy. My goal at the moment is to improve my cattle and let them finish paying for themselves on rented ground. I put up a pivot behind my house five years ago and it will be paid for in two more years. Had to rent it to a neighbor to row crop because the cows wouldn't pay for it. When it's paid for, or maybe a year or two later, I'm gonna move the cows home and I hope I get to buy the farm adjoining me in the future. Long term plans but I figured I had to start somewhere.

 

[JMJ Farms]

I knew where there was a 1000 acres an absentee landowner wanted someone to run cattle on just to keep the fields cut and the fences maintained. It was a perfect setup with ponds and fences the landowner's daddy had worked his life on. The son just wanted to keep it looking the same and money wasn't a factor. He even offered the place rent free for two years and after that he only wanted $25/acre for the improved pasture land. The rest would be free. Granted it did need some fence work and a couple of gates needed to be rehung but I couldn't find a soul to take him up on the deal so he planted pines on all the pastures. I guess its like True Grit said, too many just want everything today and don't want to invest their time or money.

Those kinds of opportunities don't come along often in life, especially in our part of the country. I'd have jumped head first into that deal.

 

[Jogeephus]

Had it not been an 1.5 hours from my house I would have jumped on it myself. Couldn't believe we couldn't find a taker on that. I've picked up free land for haying on occasion. Some people see the value in having someone working the land rather than it growing up in weeds and brush especially after they have had to pay someone to mow the land for them. I know several people who have rent-free or nearly rent-free use of land just because the landowners know they will take care of it.

Long term plans but I figured I had to start somewhere.

Long term plans is a key point here. To many fly by the seat of their pants and have no clear idea where they are even headed. I've made lots of long term plans myself. More often than not I'm unable to make a move toward reaching them but I'm patient and when I can I do and I can move quick before the opportunity closes. While I know I'll never reach all my goals I've reached enough to know having plans is not a waste of time. On top of that, it gives you a reason to wake up and plug along.

 

[JMJ Farms]

Me too. I need a goal to focus on. I haven't figured out if it's a positive or a negative, but I will jump on what I think is an opportunity in a minute. Most of the time it works out but it drives my wife crazy. I figured I came here with nothing, and I'm leaving with nothing, so the worst I can do is break even.

 

[littletom]

Here in my neck of the woods ground is hard to come by. All the good ground is in crops with a high rent rate. Most decent ground is owner operator pasture or hay. Or the big one CREP (similar to CRP) that pays 100+ a acre. This has gotten most of the pasture farms. Not much left. But some comes up from time to time. Guy I know has had some luck with buying whole herds, and leasing the farm they are on.

 

[ddd75]

I'm not sure how you guys can't make any profits in cattle. My cows have paid for my last 2 farms, are paying for my 3rd. Paid for all my equipment. and gave me money in my pocket.

Even at 400 / hd profit a 50 brood cow herd should generate around 20k profit.

Let's say you bought 50 acres of good land to support those cows. Even at 6k/ac at 5% no money down thats around 1750/m or 21k / yr

This doesn't include making more on trading cattle, selling some bulls, replacements etc which would bring income up.


I'd say more ' cattle land ' can be bought for 2k - 4k / acre which would be only around 14k / yr.. (4k ac) @ a 25 yr term.. 6k in your pocket + paid farm.