denoginnizer":2h7y0hx6 said:
Neighbor has about 800 acres he is interested in renting. He says he is taken written proposals. The place is covered with cherokee roses and hasnt been fertilized in 15 years. The fences are in very poor condition and the catch pen is rotten. He wants the propasals to describe in detail what will be done with : fences, spraying ,frequncy of bushogging, lease length, catch pen, fertilization program. The winning proposal will be used as part of the lease and this guy seems to be very unflexable about changing anything after the lease is signed. He is getting about 22 per acre now.
How would you handle this deal?
I would have to agree and recommend to pass on this one.
However, if you are like me and look for any oppurtunity to expand, keep in mind he is wanting you to improve his land so he can probably sell it at some point.
I would recommend this. A 10 year lease, so you get to benefit from the work that will be done, keeping in mind the first 2-3 years will be spent improving the place. He pays for ALL of the fencing expenses, no questions asked. If there is alot of spraying that needs done, you will want to think about wether he should share that cost with you as well.
I would definitely work a first right of refusal into the deal. In other words, at the end of the lease period, if he has another offer to rent the ground at a higher rate, you can simply match that offer and continue renting the ground for an additional 3,5,7, etc years. Or if he wants to sell it, you can simply match the agreed upon sales price he gets, and you can buy.
In the end, I think I have this type of person pegged. He hasn't done a darn thing to his ground in many, many years. Now he wants to rent it, and the first time you would do something he doesn't like, he will probably chew your arse big time. Even if it was something he had been doing or not been doing for years. He also wants you to improve his ground. He would also be the type to try and terminate the lease if you do one thing outside of the lease agreement.
Maybe just ignore that one paragraph and just walk away..... I have been looking to expand for a couple years, and I will probably get that oppurtunity next year. It is hard to pass on deals that might work, but sooner or later a good one will come along. Patience is hard, especially if you are young like me.