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Re: yalls opinion of a long term lease idea for family ranch. [Re: Mike Honcho] #5995938 10/27/15 02:37 AM
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Originally Posted By: jorge
Originally Posted By: Cleric
Why would I sign a long lease? Is your rate below average? What happens if I get laid off? What happens if someone turns into a jerk?

If it's a good deal people will stay year over year


I see several reasons why a long term lease can be worthwhile. 1.) Not a lot of good leases these days. 2.) Having the ability to develop the lease where the land owner is contributing just as much to improve wildlife. 3.) The opportunity to have a place to hunt that you dont have to worry about getting the boot if more money comes along. 4.) Having a lease with guaranteed opportunity to take exotics. 5.) Long term to me if all things were good is insurance someone cant/wont boot you off especially if there is a substantial monetary consequence for that.

If you think youll get laid off this probably isnt for you, but with that said im looking at this as purely a business deal and would do all i can and would want the lessee to do all they can to find a replacement or work out a deferral till that person can be part of it. It would be bad business to get rid of the right person on acct of the money solely. There is so much more to a lease agreement than the money.

To be honest im not sure how much this idea is worth open market, and would need to do some comparative analysis to see what would be a square deal.


So here would be my perspective as a customer
1)every seller thinks there product is better than others
2) so I am developing so you and your family can own and continue to use
3) most leases if I have seen aren't keen on booting people if they fit.
4) true. Other leases have exotics though
5) not really a benefit

The second paragraph is a why I wouldn't sign a deal like this. I know many people who never thought they would be laid off or theit company wouldn't go belly up.

You are wanting a long term agreement to guarantee your equity flow but unless you are giving me a better value for my money than a year over year dealI wouldn't sign it. You would be motivated to maintain the same person to ensure continuity and adherence to rules.

For example, why would I sign a 7 year deal for 7000 as opposed to a year over year deal at 1000? You get all the upside and and I take all the risk. Now if you give me a 7 year deal at 5000 that is a reason.

Re: yalls opinion of a long term lease idea for family ranch. [Re: Cleric] #5996071 10/27/15 03:58 AM
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Mike Honcho Offline OP
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I need to eat my words in fact im laid off from oilfield right now. I didnt mean to come off like an a$$. What i didnt get across is i look at this like a long term investment. If im looking at investing long term that needs money year over year then i plan accordingly and wouldnt get into a deal i couldnt swing, and lose my investment. There are plenty of equities id love to buy at the moment because of tremendous upside potential, but cant take the risk with no job security. Maybe i shouldnt see it so much as a business, just how my brain works.

1.) Ill be completely upfront there are far better leases and ranches out there. Ill even say poaaibly better values upfront, but i dont know about long term. The ranch has tremendous potential its set up and with the right group or business could provide years of great hunting to all involved.

2.) Not at all is the lessee developing the ranch to ONLY benefit family. The plan i have is equal skin in the game to invest in making the game quality better for all.

5.) I love exotics and that gives a subjective value of the place and i recognize that, but i know im not the only one.

Ill put this out, please tell me what yall consider a value for what ive described. I want to know what guys and gals like us think this concept would be valued at.


“Two things that define an individual what you do when you have everything, and what you do when you have nothing."


Re: yalls opinion of a long term lease idea for family ranch. [Re: Cleric] #5996081 10/27/15 04:10 AM
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Originally Posted By: Cleric

For example, why would I sign a 7 year deal for 7000 as opposed to a year over year deal at 1000? You get all the upside and and I take all the risk. Now if you give me a 7 year deal at 5000 that is a reason.


I can see the value in the 7 year agreement at 7000 compared to the 1000 per year deal for the one leasing the land. It provides a set amount of time that they are guaranteed to be able to see the results of the investment. Basically, if I dump time, money and energy into a place, what is to stop the owner from dumping me next year for another group?

On my lease right now, we are discussing building a large building as a group. While I have been on the place for 20 years, we only sign a one year contract with no guarantee of the next year. If we put in the money, time, energy, etc for the building and the rancher or land owner decides to go a different route, that investment is gone.

From what I can tell, jorge is offering the long term lease to insure that the both parties are involved and will be able to see the results of the investment. Just my 2cents


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Re: yalls opinion of a long term lease idea for family ranch. [Re: BOBO the Clown] #5996092 10/27/15 04:22 AM
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Originally Posted By: BOBO the Clown
Originally Posted By: jorge
Anyone been involved with corporate leases please chime in.

I imagine some ppl reading or that have posted might get the impression im being dense or stubborn. First, i appreciate yalls insight and conments. I take em to heart, but its in my nature and lack of experience why this wont work when i see trememdous upside potential and mitigatable downside potential.

My take on the situation is pretty simple, maybe too simple. If all known variables are laid out and addressed contractually the only hard part is find the right ppl. I think the heavy monetary penalties for breaking the contract keeps both very honest and toeing the line. I for one aint going to risk a $5k+ infraction. It does no good imo to have a lease agreement that isnt severe to the point that it mitigates. If you have a lease agreement and the worst is you get the boot imo its pretty week. And most wont pay the attorney fees to fight and most honest attorneys will say its not worth in many situations. But having a legal and binding contract to go after someone for the equity put in that sure as heck imo keeps everyone honest and mitigates.


You would be shocked what some will pay monetarily for an infraction when they see something they want.



Or shocked at what they would leave in the woods to avoid paying that infraction...


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Re: yalls opinion of a long term lease idea for family ranch. [Re: txshntr] #5996127 10/27/15 05:04 AM
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Originally Posted By: txshntr
Originally Posted By: Cleric

For example, why would I sign a 7 year deal for 7000 as opposed to a year over year deal at 1000? You get all the upside and and I take all the risk. Now if you give me a 7 year deal at 5000 that is a reason.


I can see the value in the 7 year agreement at 7000 compared to the 1000 per year deal for the one leasing the land. It provides a set amount of time that they are guaranteed to be able to see the results of the investment. Basically, if I dump time, money and energy into a place, what is to stop the owner from dumping me next year for another group?

On my lease right now, we are discussing building a large building as a group. While I have been on the place for 20 years, we only sign a one year contract with no guarantee of the next year. If we put in the money, time, energy, etc for the building and the rancher or land owner decides to go a different route, that investment is gone.

From what I can tell, jorge is offering the long term lease to insure that the both parties are involved and will be able to see the results of the investment. Just my 2cents


Exactly what im trying to convey in this post.


“Two things that define an individual what you do when you have everything, and what you do when you have nothing."


Re: yalls opinion of a long term lease idea for family ranch. [Re: Mike Honcho] #5996140 10/27/15 05:30 AM
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I think it is an interesting idea and very doable, but will take some vetting and the right group. That is going to be the hardest part.

Basically, I see it as a business partnership between you and the people leasing the land. While they don't own it, they will feel that they have a stake in it and the decisions that are made.

Management plans are like opinions, every one's is a little different. You will need to find someone that is willing to abide by your management plan or you will need to be flexible and easy to work with.

I personally don't like the recourse clause. I think it will cause some problems. With the right group, every effort should be made to what is best for the place and what is best for the herd. Mistakes will and do happen. I would lean more to a "replacement" cost or some other lessor punishment. Maybe no trophy for 2 years or something along those lines.

The price point will be difficult to give a number on IMO. There is going to be a lot of work required to get the place where you want to take it, and not just money, but labor and time from all parties. A progressive increase in fees seems like it would offer the best option, but I think that the increases need to be established at the front end. Never a good feeling to increase the value of the land and then feel like the only reason that the price went up was because of what you did to increase the value for the LO.

The number of hunters would need to be determined and it would need to be based on the number of deer that your place can logically sustain. Factoring in the total herd, age class, loss of culls along the way, loss of deer from natural causes, and the number of mature bucks that could reasonably be expected to be taken would need to be used to determine this. You and your family member would need to be factored into this.

As far as you and your family member hunting, to me, best case is that you are both part of the hunting group. This would include regular member duties, harvest quota's, stand entitlements, etc.

Feed would be another issue for me. Again, IMO, I think that there should be a designated number of free choice feeders set up away from the corn feeders and equal distribution between the members and family. On a HF place that side, with a managed herd, the supplement feeding should be a main focus.

I believe that it would be difficult to find a market value for what you are seeking. From what I am reading, there are not alot of places that do what you are wanting to do. The number would have to be something that it reasonable to you with consideration for the energy and effort that the hunters are providing, and not just the monetary value.

Another option, in regards to the pricing, that might be considered is selective guided hunts for the exotics during the off season to help offset the cost of the lease. Especially on the front end while the value is less.

I wish you luck my friend up


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Re: yalls opinion of a long term lease idea for family ranch. [Re: Mike Honcho] #5996147 10/27/15 05:59 AM
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Txshntr that was a greatly informative and most appreciated post. That helped me see a lot. Thank you very much.


“Two things that define an individual what you do when you have everything, and what you do when you have nothing."


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