I have a group of guys, we have been leasing hunting land for probably a decade now and never had any issues. We were taking the other day, what if some of us created a group/trust and bought land together instead of leasing. How does that work? I have bought and sold homes, but not sure how you go about buying land with multiple owners?

Thoughts?

typically you would form a LLC. and have a percentage of the LLC. owned by each individual OR have it in individual names with undivided interests, meaning every person owns X amount each acre.

it sounds good on paper but the fact is that its really hard to get more than 2 people to agree on much of anything. I've seen two people succesfully own a ranch but anymore than that and problems arise quickly.


I've never seen it successfully done long term, and I've been selling ranches for 12 years and been around them for over 25. Even family has a really hard time owning a piece of property together

It can be done, just be prepared to spend a years worth of lease money upfront on a attorney. So many things have to be spelled out.
What if one dies and wife is not interested in the property. What are her rights to sell. What if one moves for a job and wants to sell.
What if one looses job and can't make payments. Where is the money going to come from for fixing fences, roads, any structures on the
property. Money for equipment....a tractor, etc. There is so much more to owning land than just the price of the land. What if there are
5 of you and 4 want to build a $25,000 cabin but the 5th does not.
Lots to think about. But it can be done.

Along with financial details, there is the work load to consider. It has to be split fairly.

Future relatives, how, when and what are the rules going to be for them to come to the land?

Father bought a ranch with 2 other guys, did not work out.

All of the responses above contain great feedback to follow...if you do it then you want to put a ton of time (and unfortunately legal expense) into as many "what if" scenarios you can come up with and create the most detailed LLC and operating agreement (rules & expectations) as possible to cover each and then some...as mentioned above, financial reversals, death, divorce, dispute, violation of operating agreements, etc...all can cause major issues...if possible try to carve out exactly who owns what and then the other partners have right of first refusal to purchase a partner's piece at a set price or per a pre-determined & agreed to calculation if they need or want to sell...if a fall out were to occur it's best that everyone know exactly how the situation is unwound...but, believe me, there is no way to account for every possibility and when people want to they can get an attorney and make a legal argument out of just about anything...you better really trust your buds and you need to take their family, business and personal lives into serious consideration.

The reply's seem to be in total agreement ------ in short ------ great theory, but DON'T DO IT !!!! LOL .

X2. Never say never but the odds are this is good advice.

this idea is how 20k acre ranches become 120 acre tracts 2 generations later...Too many varibles divorce,children,death for 6 people to do....Land is a great investment by yourself....If you have the means to buy by yourself do so and have 5 guys pay a lease few that will cover you 5 months..Capital farm credit has great dividend checks that cover 2 months of my mortgage...Then you are left with 5 months you have to cover....

Too much headache for me. I’ve got a few friends that ask me every year to do this with them and it’s always a hard NO for me. I know there can be benefits to it, but the headache involved just makes me not want a thing to do with it.

Besides, I can lease a place for a long time before I ever get close to what it would cost me to own a place. Also, I know I can’t afford the size place I want, where I want, and if I ever get tired of the lease I’m on I can find something else that suits me faster than if I own something or a pet of something

Friend’s father and 3 of his buddies bought 1200 acre place in early 70s and had a pretty good thing for nearly 30 years. They had owners week first week of rifle season, then a rotating schedule for remainder of season by week when they could bring friends/family/clients. Nice lodge and a manager that kept things running in exchange for grazing rights. During season a local couple would cook and clean for tips and did quite well.

All went along well until the original owners started passing away, or simply became too old to enjoy. They then voted to sell and made a HUGE payday.

Lessons - it can work, but you have to set pretty firm rules, be willing to compromise at times, and the big one, be RICH to start.

I am getting the impression that you all are not in favor of this idea LOL

I get and appreciate all the comments, it is an idea we thought about, but to be honest, i am not 100% if we actually went down that road who could afford to do it and who is just saying it is a great idea

Easy way to find out. Hold a meeting and tell everyone to bring a $2,000 check to cover their part of attorney fees
on setting this up. You may be the only one at the table. lol.

This is a good way to lose friends. In a group something unexpected is going to happen to one or more members over time. Not saying it can't work, but odds are against a group staying intact. Stuff has a way of happening.

Buy your own smaller place.

Unless the wives are all friends and totally by in, there is another source for problems.

How big is the group?

^^^The second paragraph of this is me for sure.