Land partnership

[cbw]

Congrats!


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[birdog]

I'd be looking for a way to split the parcel and each having your own ownership of that specific piece. There is no way I would partnership on land or a business, things can go south in a hurry, we've all seen it...

I think splitting is a bad idea unless it's several hundred acres at least and you could divide the property equally or to each others liking and keep it equal in value. That is often times a tall order.

Tenants in common is what I did with two other partners when I first bought the farm several years ago. My partners tried to sell their portions out from under me but since we were tenants in common I would have had to agree with selling their interests. They thought they could offer up to a buyer the portions they wanted to sell without any input from me. They were wrong and it turned out to be a big mess. Tenants in common means they only owned 1/3 interest in the total property, not 1/3 each of the actual acres.

I was able to buy them out which turned out to be the best thing I ever did. I would never, ever do it again.

 

[birdog]

I posted before I got to the end. The way you did it is a good way to go if an agreement can be reached. Often times it's hard to come together on who wants what and then the details of who pays for what can really screw things up. Looks like you guys worked it out fine.

There is nothing better than owning your own dirt! Congratulations and post up some pics!

 

[Brian662]

This should be a mutually beneficial partnership, I have the food plot equipment and house next door, my buddy has access to a mini X, skidloader, and he's a carpentry contractor who likes to make stuff nice. I'll get my house fixed up good and if it means I have to spend a few extra hours on tractor seat therapy, I think we can make that work!

 

[Brian662]

The driftless is breathtaking.

 

[bwoods11]

Find any sheds while walking around ?

 

[birdog]

Get to work on the beavers!

I had beavers and otters in my pond and creek. Beavers wiped out my trees around my pond and the otters cleaned out the pond!

Took care of the beavers but still working on them dang otters.

 

[Brian662]

Find any sheds while walking around ?

A couple but they were pretty well chewed up and nothing too impressive.

 

[Turkish]

Signed the purchase agreement today and put the earnest money down.
I'm buying 66 acres because of my 1031 exchange and my buddy is buying 40.

Hunting rights and Hunting expenses split down the middle. I'll pay my higher share of taxes but get the higher share of logging revenue that is left after we doze trails, install blinds, clear plots, etc. Plan is for me to buy him out when he's 60, he's 52 now.

Got a first right of refusal on the remaining portion of the land (~100 acres) we didn't buy, most of which is ag land. We also got it written into the purchase agreement we can get top access through the remaining land for equipment or Hunting access as long as they own the land.

Pretty sweet deal, I'm pumped. Just a few small hoops to jump through and we close May 17.

Congrats. I’m excited for you.

I do have a question though. If you’re going to buy him out in 8 years, isn’t this basically a loan and the [unknown] interest rate of the appreciation, without you’re getting to use the land in the meantime? Not poo-pooing the deal, but this idea is what has slowed my pursuance of such deals. 8 years isn’t so far away. Are you confident you’ll be able to buy it then despite not being able to now?

 

[Brian662]

Congrats. I’m excited for you.

I do have a question though. If you’re going to buy him out in 8 years, isn’t this basically a loan and the [unknown] interest rate of the appreciation, without you’re getting to use the land in the meantime? Not poo-pooing the deal, but this idea is what has slowed my pursuance of such deals. 8 years isn’t so far away. Are you confident you’ll be able to buy it then despite not being able to now?

Yes, I am confident. Honestly I could swing it right now to afford the whole thing but I don't want a few tight years before my home mortgage is paid off. That and the fact that him and I have been talking about doing this type of deal for a while made it an easy choice to make for me and my family.
It is shaping up that this is the location where we are going to set up our retirement camp, so we are slowly going to piece land together until we have exactly what we want.

 

[Turkish]

Yes, I am confident. Honestly I could swing it right now to afford the whole thing but I don't want a few tight years before my home mortgage is paid off. That and the fact that him and I have been talking about doing this type of deal for a while made it an easy choice to make for me and my family.
It is shaping up that this is the location where we are going to set up our retirement camp, so we are slowly going to piece land together until we have exactly what we want.

To keep a good thread going… Where do you think land values will be in 8 years? What will be your planning basis looking ahead to that time? 2x today’s prices? What’s the appreciation rate at which you’d be better off biting the bullet today?

 

[Brian662]

To keep a good thread going… Where do you think land values will be in 8 years? What will be your planning basis looking ahead to that time? 2x today’s prices? What’s the appreciation rate at which you’d be better off biting the bullet today?

I'm not sure what land prices will be. I doubt they'll double again from today's values but I suppose anything is possible. All things being equal, I have about 140 acres left to buy on that block to make everything tie together how I'd like for retirement (if it actually happens or not who knows), and I own 116 acres here in MN. Land being an easy 1.5X or > value here, I should be able to make that swap and have money left over.

There is no appreciation that is worth being on the edge for, IMO. I'd rather not get the land in the future than stress out financially for a few years and pass that stress to my family. Like many of us, land is very important to me, but I don't want to jeopardize my sanity and peace of mind for 40 acres.

 

[buckdeer1]

Do you have insurance policies,legal agreements about what happens if one of you passes,divorce,argument

 

[omicron1792]

This should be a mutually beneficial partnership, I have the food plot equipment and house next door, my buddy has access to a mini X, skidloader, and he's a carpentry contractor who likes to make stuff nice. I'll get my house fixed up good and if it means I have to spend a few extra hours on tractor seat therapy, I think we can make that work!

You did good my friend

 

[Brian662]

It's been a long journey but we close on the property today. Looking forward to the new addition and it's always exciting to set up a new property for hunting!