Top 5 Ways to Get The Most Return on Your Investment Property

Maximizing Your Return on Investment

Whether your land is mainly used for farming, timber, or recreation there are plenty of ways to get a higher return on your investment for your properties. Besides the obvious ways to make money of off your land like timbering your woods or farming your tillable land, here are our top 5 ways to get the most return on your investment property!

 

1. Leasing The Hunting Rights

Depending on your specific property’s details you may be able to lease the exclusive hunting rights to your property and make some yearly income on your land. Our friends at Base Camp Leasing have been in the business of helping landowners lease the hunting rights to their property for over 20 years! They will have an experienced leasing agent inspect your property for what they call the “huntable” acreage of your land and find a fair market value for the exclusive hunting rights based on the leasing price of similar properties in your area.

 

2. Leasing The Farming Rights

Crop leases are another great way to let your property make money for you. If you are not a farmer yourself and have land that would be good for agriculture, your neighbors who farm may be interested in leasing the agricultural rights to your property to plant and harvest crops. Ag Leases are a very DIY process and will most likely require some sort of lawyer to make sure everything is on the up and up but they can be mutually beneficial for everyone when done right. You can find more on AG leases from The National Agricultural Law Center.

 

3. Grazing Rights

If you don’t like the idea of having your fields planted every year, another type of Ag lease is a grazing rights lease. If your neighbors have livestock, then those livestock need somewhere to graze and a neighboring farm is the perfect spot for those farmers who might not have enough land themselves or for those who want to expand the amount of livestock they raise and don’t have the option to buy more land. If you know that your neighbors are raising livestock and you are interested in leasing the grazing rights, reach out to them and see if they are interested! It could be another win-win situation!

 

4. Wind Leases

You’ve probably been driving down the interstate and seen the giant windmills generating electricity, but had you thought about how they got there? Energy companies will pay you to lease the land that the turbines are erected on and it is a great way to make some passive income. If you don’t mind looking at giant wind turbines out your window, this is a great way to earn a better return on your investment!

 

5. Solar Leases

Another alternative to traditional leases for land is a solar lease. With the cost of solar energy equipment dropping in recent years, many energy companies are investing more of their time and money in solar. They are always looking for land to lease and if you have large amounts of land that you don’t farm that is open to the sun, your property could be a perfect fit! Check out this Renewable Energy Reading Room for more info.

 

While not every option listed above is a good fit for every landowner and every plot of land, you can do even more research on the ones that pique your interest! When it comes to making a final decision, make sure you are sure and have talked to other landowners who have made similar agreements. The more research you do on these topics, the better off you will be as these are major decisions on your properties.

If you are looking to buy or sell property, you can fill out the form below and one of our experienced land professionals can help get you started on the right path!

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How to Make Your Farm Land More Attractive To Buyers

Playing the waiting game is no fun! It’s especially frustrating when you have your land listed for sale and you’re waiting on the “right buyer”. Sometimes, all it takes is for you to make your property the “right property” for a wider range of buyers. Here are a few tips to make your rural/farm land more attractive to buyers:

 

  1. Do Your Research

Take a look at your surrounding area and check to see if any properties have been bought or sold recently. This can help you get a sense of what the market is like in your area. If your neighbors with a similar property to yours took 6 months to find a buyer, know that the possibility of waiting 6 months is very real. That doesn’t mean that with the right marketing and the right agent, you can’t sell yours quicker though!

 

  1. Re-evaluate Your Rural/Farm Lands Asking Price

If you haven’t had your farm land appraised already, you should look into doing that. An appraisal will give you a more accurate picture of what your property’s fair market value is. If you try to list your property for too much over the fair market value, it could be sitting forever. Even if you do find someone who agrees to your price, if they have to finance and their appraiser values the property at fair market value, then they will either have to pony up the cash to cover the difference, renegotiate the deal with you, or back out of the deal completely and you’ll be back to square 1!

 

  1. Make Sure You Are Marketing Correctly

Are you doing everything in your power and using all the tools and resources you can to find a buyer? If you’re selling your property on your own, you might be missing out on some opportunities to market your property! A good real estate professional can help in many ways and marketing your property for you is well worth the commission for most landowners. With a good agent, you’ll get access to their full network of buyers in addition to their knowledge of the local market and the best ways to increase the chances of selling your property in a timely manner.

 

It takes the right combination of research, price evaluation, and creativity to sell your property in a timely manner and for the right price. The Recreational and Farm Land Professionals at Base Camp Country Real Estate are experts in marketing properties using our one of a kind resources to find you the right buyer at the best possible price for your property! To get find a licensed professional in your area, please click here

Green hunting alnd for sale

How Much is Hunting Land?

Hunting Land For Sale Value |Factors Determining Hunting Property Value

Owning a piece of hunting land has long been the American dream for outdoors men and women since the beginning of time. A place you can call your own and do what you please. All while spending time in the great outdoors doing what you love. We say CAN because there are careful considerations to take into account when buying, selling, and owning property for the purpose of hunting. Below we’ll dive into some of the specific factors that contribute to calculating hunting land value and worth. Ultimately finding a realistic selling price. So, what’s your hunting land for sale actually worth?

Hunting Property Location

Location, location, location. It should come as no real surprise that an article pertaining to real estate mentions location. After all, location of the hunting land for sale property will largely dictate the overall value, especially when it comes to deer hunting. Don’t believe us? Just take a gander at the average per/acre land prices in the leading Boone and Crockett Counties for whitetail deer. From the region all the way down to the neighborhood, property values are greatly influenced by their location. While deer hunters and property owners are quite aware. Whether it’s an 80 of timber tucked in the hills of the famed Buffalo County, WI or an 80 of flooded cornfield in the Mississippi Delta. There are areas that will inherently carry greater value simply due to the location and historical reverence.

Access

Access to a hunting property is another important factor when determining value. Something that is often overlooked by buyers and sellers. How valuable is a property if it’s tough to access? Nowadays, access routes that add to the property value are one’s that have a well-defined trail system or vehicle access whether it’s in the form of a truck or ATV. Tough to access parcels that require permission via the neighbor (landlocked). One’s that have no trails can take a big hit when it comes to property valuation and marketability. If you’re a buyer, perhaps this is a good thing because you know you can purchase the property for a cheaper price. Then immediately add value by adding an extensive trail network on the property. However, if you’re the seller, it may be worth hiring a dozer for a few days to increase the marketability of the property. In addition to trails running through the property, road access and tractor paths are also incredibly important.

Land For Sale Makeup

The overall composition of a piece of hunting land for sale will play a large role in determining the value of a hunting/recreational property as well. How much of the land is agricultural, timber, wetland, CRP, etc. Each land type will carry a different price tag so to speak, especially when you consider the regional differences. For instance, agricultural land is worth more in the Midwest compared to the southeast where timber is main commodity. Diving deeper, the quality of Ag land varies greatly from property to property and will have a dramatic impact on the overall value of a property when it comes to selling or renting that land.

The soil quality, type, and terrain all play a role in determining the overall value of Ag land on a property. This is where working with a knowledgeable agent is crucial, as they know the local markets better than anyone.  In the same breath, the composition of a property is going to appeal to some more than others, thus having an impact on its overall value. A whitetail hunter might not be too thrilled about a piece of marshland along the Mississippi, but it might be a duck hunter’s dream property.

Income Potential

Contrary to popular belief, hunting land may be more affordable than one would think. Here’s a few investor savvy strategies that can turn your dream hunting property into an income generator.

Lease Crop/Pasture Land

The first strategy that many hunters are familiar with is to rent out any farmland whether it be for cash cropping or livestock grazing. Use this strategy as a means to lower your monthly payment, help with property taxes, or even make you money on your property.  Of course, the fertility of the ground and current crop prices will ultimately dictate the amount of income potential.

Hunting Land Timber Value

A timber harvest may also be an income generator from a hunting property.  Selling off timber is a bit more complicated than simply handing a lease over to a farmer every year.  Going into a property, it’s always wise to have an experienced forester along to walk you through the process.  Just because you see a lot of trees doesn’t mean there’s a profit behind them.  A lot of factors can impact the value of a timber stand. Such as the size of trees, species, accessibility, and current market conditions.

The one nice thing about timber compared to Ag crops is that it grows year round.  This allows you to time the market over the course of several years. All while the timber volume increases. Understand what the impacts of logging are in terms of income. As well as property value before and after to help you decide what the best path is moving forward.

Mineral Rights

There’s always a chance the property in question is sitting on a gold mine – literally and figuratively. While an actual gold mine might be a bit unlikely. Things like natural gas, frack sand, coal, and oil are certainly possible. So, who owns the rights/income potential from minerals? This is where things get tricky.

Hiring a qualified agent along with a mineral rights attorney is in your best interest. The hassle and confusion comes about because mineral rights may have been severed from the surface rights of a property at some point in time. Yes, you heard that right – you may own the surface (aka the right to build, farm, plant trees, etc.), but some other entity could own the mineral rights (aka the stuff below the surface). Navigating these waters can be tricky business. Nonetheless, there’s always a possibility that you own a “gold mine” . Which can drive up the value of a property dramatically and make your land for sale that much more desirable.

Specific Hunting Habitat Features

As hunters, we know there are a lot of variables that can ultimately impact a property’s value aside from the major assets previously discussed. Things like food plots, native cover, bedding areas, tree plantings, orchards, watering holes and ponds will all impact the overall value of hunting land. The best part is these are all things you can improve upon to increase the value of a property. Whether you’re looking for a turnkey, ready-to-hunt property or a piece on which you can improve upon, don’t overlook these crucial habitat features.

Often, people buy a raw piece of hunting land for sale that hasn’t been managed with wildlife in mind.  Wildlife management can be one of the quickest ways to build equity. Starting small with an end goal of improving and selling down the road is a great method for working your way up to bigger properties.  Remember, land can be a great and profitable investment if you buy it right and improve the property.

End Goal

If your end goal is to own 200 acres of prime deer hunting land, start with a 20 or 40-acre property.  Throw some food plots in and create a good trail network. Perhaps a water hole or two, and remove any junk to add instant equity into the property. While also improving its value for a future sale.  Not only will the property look nicer to future buyers, but it’ll also hunt better.

Using the buy>improve>sell method along with the 1031 exchange (ask one of our agents how a 1031 can help you acquire your dream property. At a faster rate than you ever thought possible.It  is a great way to turn your small investment into one you never thought possible. All while having your own private hunting property along the way.  Short term sacrifices can lead to long-term gains. Base Camp Country Real Estate can also help you find the  perfect property! If owning a property is too daunting of a task. Leasing your own hunting spot every season is easier than ever with Base Camp Leasing services.

Immediate Return on Investment? Timber Evaluation

 

Transcription:

Something to consider on the hard woods and when you’re looking at timber land is the potential market value of some of the woods. This is a white oak. Under a great amount of demand right now and the prices are really great. Looking at and being able to identify the potential value of the tress that are on your land is important. Learn how to identify the species and if you don’t know, get a consulting forester to walk it with you to get an opinion of value. A lot of times you can buy property that’s well stocked with marketable timber that can give you an immediate return on investment or over time. The other thing to look at is the distribution of size and age classes. If everything is all one size then you might have some immediate value but over time you want to be able to extrapolate some of that other timber as those younger tress are growing and filling in. Managing your timber is just as important as managing your fields or your home and your pond and your yard. If you manage your timber correctly it can provide great returns over time and a lot of these species are also great wildlife value trees so they also kind of work hand and glove.

Think Before You Buy; Understanding Access

 

Transcription:

You can have the most awesome piece of ground in the county. Lots of big deer. Great habitat. It doesn’t do you any good if you can’t access it effectively. Thinking about where you’re going to be parking. How your going to get back to those stand locations, those fields, those food plots you’re creating. If you’re walking through where all the deer are bedding to get to your hunting areas, its very counterproductive. Knowing and seeing if the property has a good trail system, a network of trails, in place or if you can improve it yourself in putting those with some clearing and some mowing and some maintenance.

Forego the emotional attachment of how awesome the place looks and put yourself in the position of you actually trying to get to that stand without alerting that mature buck that’s bedding on these ridges in between. Can you pull it off? If you can’t do that, as bad as you want that piece, if it doesn’t work and you can’t figure out a way to do it effectively, you’ll be frustrated in the long term and almost regretting the decision to buy that particular property.

Considerations for a New Hunting Land Buyer

 

Transcription:

We’re out today in a beautiful, sunny afternoon here in central Indiana. Today we’re talking about what to look for if you’re in the market or prospecting about buying a recreational piece of ground for hunting. Not just for hunting, but for your family to have a weekend getaway. It could be a place just to camp. It could be a combination farming, hunting, fishing. There are 3 or 4 fundamental things that we want to talk about today, but there are also a lot of side details to consider when you’re looking at different properties. Obviously, price point is on everybody’s mind. There may be some things that you don’t consider and hopefully some of the topics that we’re going to talk about will open your eyes to consider those few things.

Starting out here, my friend is looking for a piece of property that he can deer hunt on and manage for deer. He also wants to be able to camp with his family and do some fishing. Turkey hunting and small game as well, but primarily a deer farm that he can manage. One of the obvious things is you’re going to look at the timber and some of the benefits that will attract deer and keep deer on the property.

This particular piece that were on is about 55 acres. Right off the bat, you can see it has got a pond. It’s a stocked pond. So automatically there’s a great spot up here in the front where the family could put up a cabin or park a camper and have a place to get to. Considering where your base camp is or where your staging area is on the property is one thing some people don’t think about. It’s important to how it effects the hunting of the ground.

We’re on the east side of the property. The northeast side to be specific. Here in central Indiana the predominant wind is a west wind and being on the downwind side from your approach of where you’re going to be accessing your deer hunting areas is a pretty good strategy. It’s not always going to be a west wind, but for the most part, you can be sure that when you’re base camping up and heading out from there you’ll be in an approach that will allow you to enter your stands from downwind the majority of the time.