Put your money in land. It may stagnate for a year or so but unless you get really goofy on your purchase it will always go up.

I thought I over bought, hindsight should of Taken out home equity loan on my house, sold both cars, took at signature loan against land and put it all in. I shouldn’t complain. I made out like a bandit, and now I get to suffer some taxes on half a sold out @ 150% profit

Plain and simple, we don't invest with discretionary income and yes, we do think when making investments. Mule deer hunting was always arranged with discretionary income and after investing. It's an invest in yourself first regimen.

Plain and simple......income you don’t use for expenses IS discretionary income......unless your investing with inheritance or gift......it’s discretionary or disposable take your pick it means the same.....unless you don’t invest period.....

That should just be a portion of your investments. You kinda have to unload it to get money and then you can't use it anymore if you bought it to hunt. You buy the right stocks you could buy plenty of land.

IMO unless that land is making you money every month, then it’s generally a bad investment for most people. If you buy a piece of land for, example $200,000, and just sit on it, unless you paid cash for it, then it’s costing you way more than it will make you.

$200,000 with 20% down, finance $160,000 for 20 years at 6% interest, assume you get ag tax break and taxes are say $100 a year, that land is going to cost you $1238.00 a month, or a total of $337,109.00. Do you think that land is going to gain enough value to pay you back and make money for you?

If you are gonna add real estate to your portfolio, now and the next few months seem like a good time to do it. But I've seen, and experienced people getting carried away with real estate.

My grandfather, for one, believed real estate was the only good investment. He made some fantastic decisions and also some very silly decisions. I've spent a good portion of my adult life untangling and simplifying a very convoluted mess. Keep it simple. And income producing is best, IF you have the time and interest in messing with it.

Again, I'm NOT an investment professional, I didn't sleep at Holiday Inn last night, and this is an internet hunting forum.

If you buy stocks you don't borrow the money to purchase them. It is the same with land. If you are planning on flipping it you shouldn't be financing it.

My definition may not be in the dictionary but it has worked well for me. if preparing for the future is not mandatory, you'd better prepared for a home run or someone else to take care of you. That ain't happening here.

A realtor saying land is a bad investment. Not very ABC of you.

You know what opinions are like right? Some realtors remind me of used car salesmen. Not all of them but some.

Is no different then any other investment. It’s about Entry point/value and exist point/value. Interest part is not ever a considered in this specific context because, it’s investment land money vs invested in market. No borrowing. If we are borrowing then you would have to add in your margin interest on the security side...

One has to decide if your time value of money and risk is better suited in land vs market vs any investment.
My best friend is about to triple his money via a land purchase made 8 years ago.

I don’t have one piece of land I own that hasn’t atleast double in value since buying it in an 8 year time span.

I’m also heavily invested in market securities and residential real estate.

It’s risk vs potential return... that simple

You buy the right land you can buy all stocks you want too....

Circular argument. No right or wrong except as you mentioned diversity is safer

You could take as survey of the 500 richest people in America, and not counting inheritance, virtually none of them made their fortune investing in the stock market. Real money is made in real estate, business, etc, not Wall Street.

Easy now, next your going to tell us big ROI’s, take years

If you can pay cash, or use the land as income generating, or can buy it in an area where the market is moving like you did, then yes it absolutely can be a great investment.

A lot of people run around with the notion that they aren’t making anymore land so that’s what I need to buy when there are other real estate options that are better suited and will/can create passive income.

Most people that have made millions on real estate didn’t do it via just a land purchase where they bought and sat on it.

Ha, you'll never, ever hear those words out of my mouth I promise.

Hardly.


A quick look at the top 100 of Forbes top 400 shows only 4 made their money in real estate, the vast majority made their money in business. Making money in business usually entails taking a company public and cashing in on the stock. You know, on Wall St.

Many more made their fortunes in hedge funds and Investing, not in real estate. I would submit that it if you surveyed all millionaires the majority would say that matching 401k, stock options or the stock market is how they got there.

Forbes top 400

made back 3k since i posted this

So you were just being chicken little again?

I specifically said "richest people in America", not just a millionaire. It's not near as far fetched to be a millionaire in America anymore as it used to be. I agree on business being the likely avenue, not the stock market though. My buddy started his horizontal pump company in 2012 with an initial investment of $500k, and sold it 3 years later for $19M.

I know what exactly you said. And of the top 100 richest people in America, only 4 were from real estate. Just like I wrote. The first at #32.

And while your friend did great, I would submit that he and others like him are a very small percentage of total millionaires.

How else do you make millions off an investment if you didn’t invest in it? It’s exactly how people make millions off an investment, they bought it first and then sold it when their exit plan matured to their satisfaction, now did they get their initial investment from land most likely not, most get the investment money from accrued savings of income.

Paying cash for land is very similar to investing in a non dividend stock or fund. If that land has income generation, wind, subsurface minerals, or lease/use income then it pays a dividend. For this I’m talking straight growth no dividends. Straight cash investment.

Lots of people buy land strictly for capital appreciation. One of my friends was the largest Homebuilder in NM for a time, he ended up making similar money buying land and selling it to other home builders like DRH, then developing it, w/70% less risk. Buying land to sell based off appreciation, is a HUGE wealth building too. Dillard’s is a perfect example, are they a clothing retailer and/or a real estate company? They are essentially a real estate land speculation company that uses retail as their dividend

For every example I put up I’m sure there is someone that hasn’t done well on a land purchase and sale, but just like stock market exit timing, the question begs what was the total investment time and why did was it sold at that time. If you bought stock from March to June, you look like a God. Sept last year not so much.

Like I said originally, any investment is based on entrance value/timing, exit value timing and risk. Typically land doesn’t go bankrupt, or have a catastrophic failure. No wrong or right. Just time

How many from business, as I also mentioned?

Buy acreage in an area where subdivision size lots are in demand. Sub-divide acreage into subdivision size lots. Sell those lots. Repeat.
Be it 10k acres cut into 500 acre lots of 10 acres cut into 1/2 acre lots; the formula works. Start small, it takes cash.