Deal or No Deal???

[TREY-L]

I was reading through our local classifieds yesterday evening and came across an ad that said "22 thoroughbred Charolais (what I am already raising, most reg.) heifers for sale $14,000". I called the gentleman and discussed the heifers quality, rearing, and age (12-16 months, most around 16) and it turned out that I knew him in a roundabout way. He has supplied bulls for some folks that I know for over 30 years, and has an excellent reputation for his stock. I went and looked the heifers over this morning and liked the look of them. He has already turned one of his great looking bulls in with them, so many are probably already bred (I know, too young for some). Looked over his brood stock, and they also looked really good. I left his property and met him at his office in town (lawyer). He assured me that all of them are very healthy.

Long story short, I pushed the BIG RED BUTTON that said DEAL!
Can anyone spot a losing angle in this deal? :?:

All feedback is greatly appreciated, as I am still learning.
Trey

 

[msscamp]

Since this is a private treaty sale, I would want to see health records for the animals in question - what they had been vaccinated for (and when), and what they had been treated for(and when). I would also want to see their papers upfront, along with the papers for the bull they had been bred to. 14,000 divided by 22 = 636.00/animal - seems a bit low for purebred heifers to me, but I could be wrong on that.

 

[TREY-L]

M, some great points. He didn't have any health records, only his word and reputation, which around here still means something. The gentleman is older (80+) and has to rely on his "hands" to work his cattle for him. Judging by the looks of his brood stock I'm not all that worried about his health program. They will be vaccinated and wormed again anyway. He is also still practicing law full time, I think just to keep him active, so I think he is kind of down sizing. I looked over the rest of his herd pretty close and it didn't appear that he retained any replacement heifers, and at his age I can understand. These heifers will be retained on my farm and allowed to breed with one of my registered bulls (after vet check of course), and off spring will probobly be sold at local sale barn. As for paperwork, these are pure bred, not registered pure bred, and I didn't buy them as such, and won't be selling offspring as such. He said he used to only have registered cattle, but several years ago he quit registering them "because the AICA was getting so money hungry".

Trey

 

[vs_cattle]

Reg. Fees Are Money Out Of Your Pocket But I Know It Brings You More Then A Commercial Calf Would

 

[Bama]

The guy I think your talking about sells stock at the Northwest Al. Stockyard. If its the guy I'm thinking of I would buy them sight unseen from him.

 

[TREY-L]

The guy I think your talking about sells stock at the Northwest Al. Stockyard. If its the guy I'm thinking of I would buy them sight unseen from him.

Yea... I mean, if you live around here you would know exactly who this man is by the way I described him, I kinda feel bad about giving so much detail about his identity.

Trey

 

[Jeanne - Simme Valley]

If they are decent size, raised out properly - you made "a GOOD DEAL!"

 

[MikeC]

Reg. Fees Are Money Out Of Your Pocket But I Know It Brings You More Then A Commercial Calf Would

Seller pays Reg fees. Even pays the signing fee for any bull that she may be bred to and the Reg fees of the calf.

 

[BRG]

Sounds good to me, we have purchased 150 open yearling Red Angus heifers in South Dakota and the average price is $750. Looks like you got a deal to me.

 

[alftn]

Rum them throught th shoot and worm them and give shots...The small ones, to young to breed, if bred you might have some calving problems that is the biggest down side I see...

 

[vs_cattle]

Mike C

Seller pays Reg fees. Even pays the signing fee for any bull that she may be bred to and the Reg fees of the calf.

Trey

He said he used to only have registered cattle, but several years ago he quit registering them "because the AICA was getting so money hungry

".

I was talking about the lawyer should have

 

[Bullbuyer]

Rum them throught th shoot and worm them and give shots...The small ones, to young to breed, if bred you might have some calving problems that is the biggest down side I see...

My concern as well - especially with this breed.

 

[stocky]

Sounds like you got a heck of a deal. At 16 months old, they should weigh from 750-900 lbs so you got them for around 85 cents per pound average. That is below feed lot price. Sounds like quality animals. Put a red bull (red angus or limousin) with them for top dollar yellow calves to sell as feeders. I dont like pure charlois for commercial momma cows, but at that price, it is worth a shot and cull the non-performers. Watch for calving problems with the smaller ones.

 

[TheLazyM]

AS an Alabama cattleman your seeing cows prices going up right now. So if your in the market to buy then I feel you made a smart move. Us Alabama cattlemen do things alittle diferent than the rest of the world or at times it seems that way to me anyway. You looked at the cows. Did you like them? I would say you did cause you bought them. I dont care what a vet says things happen and in this busness you've got to understand that what it comes down to is if your willing to take a chance with the animal in question. If it was an all or nothing type deal then you might have made a good deal.{ I feel you did}. If you could have culled you might have done alittle better. But i did'nt just tell you something you did'nt already know.

 

[mnmtranching]

Why would a experienced cattleman sell at below market price?

Sure sounds like a deal to me.

 

[TheLazyM]

Why would a experienced cattleman sell at below market price?

Sure sounds like a deal to me.

Its a matter of being able to get to the sale. On top of that Its what the buyers at the sale is giving not what the market spot is that your going to make. If nobody at the sale is wanting reg. char than they arent going to push the bid.
The seller might not have sold below the market. We dont know how much weight was bought. WE just know how many animals and for how much. Now knowing beyond that we really cant tell how he bought them. WE know some are smaller so saying the $636{?} an animal is crude. Those animals might only be worth $450. On the other hand there might be some that are worth $800 so that will even some of the irregularity out. When you get thru he might have sold at market spot and then saved himself $18 a head plus fuel to haul.