# My Name is Tim, and I am a Landoholic



## tarbe (Apr 7, 2007)

Not intending to make light of the seriousness of alcoholism....

But I cannot seem to stop making deals on land.

I purchased my 80 acre parcel first, back in 2010.

Then in early 2012 I added 5 acres from my neighbor's 120, to give us the prime homesite between our combined 200 acres. This purchase also got my holding out to the county road, vs using just a deeded easement.

In 2013 a contiguous 81 acres came on the market (barely contiguous...touches the corner of the 5 purchased above). I watched the price drop 28% over the course of the year, until I finally broke down and purchased it. This 81 has a quarter mile frontage on the same county road as the 5 acre parcel. It also has a nice half-acre pond that is 12 feet deep, and a nice hill that is the highest spot in the section.

Now the 115 acres that birthed the 5 acres is for sale. Has a gate at the county road and a drive that not only gives access to the existing log cabin, but also to the future homesite on the 5 acre addition.

The 115 acre piece has 1.25 miles of border with my existing 166 acres, so that land is pretty important to me from a privacy and security standpoint (think of my land in somewhat of an H shape, with the cross piece 2/3 of the way down the uprights, with the 115 in between the two verticals and on top of one also, 3 40's in an inverted L).

So now I am starting 2015 with another land deal!

I must say this...I have never spent a significant amount of money (to me significant is anything over a couple hundred dollars) on anything without having some sort of guilt/buyer's remorse EXCEPT for land.

I have done three raw land deals in the past 4 years and they all still feel good! And, I am really excited about adding this latest piece.

Our holdings will now be complete (I think). Well, there is another 84 acres of vacant land between me and the county road to the west...maybe I should try for that?? 

Land. I love the sound of that word. Aside from my faith, family and health, likely the most valuable possession I have! I gladly trade dollars for land....


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## John_Canada (Aug 17, 2013)

Awesome purchases. Wish that were possible in our area but you are talking in the millions for that kind of property here. Cant wait to see more purchases. My wife's uncle does the same thing and now owns well over 1000 acres and still lives in a the house his father built 100 years ago.


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## tarbe (Apr 7, 2007)

John_Canada said:


> Awesome purchases. Wish that were possible in our area but you are talking in the millions for that kind of property here. Cant wait to see more purchases. My wife's uncle does the same thing and now owns well over 1000 acres and still lives in a the house his father built 100 years ago.


Rural southern Missouri Ozarks has cheap land and low taxes...that is the only way I can do this! 

This is one of the few areas I have found with a decent 4 season climate, 48 inches of rain per year and land that a "regular guy" can afford to own more that just a little of (considering purchase price and taxes).

True, it is not as productive as the black dirt I grew up on in Wisconsin, but I'd be limited to 40 acres in Wisconsin...so never more than 220 yards from your neighbor's land. Well, that and my wife hates winter!

I will be growing my veggies in elevated garden boxes anyway...no bending over to weed for this guy!


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## DAVID In Wisconsin (Dec 3, 2002)

Good for you!


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## vmannam12 (Dec 27, 2014)

tarbe said:


> Not intending to make light of the seriousness of alcoholism....
> 
> 
> 
> ...


Thanks for sharing a very interesting and inspiring quest for land. I have a very similar dream of buying land though want for farming. Good luck with your new purchases.


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## PasturedPork (Jan 22, 2014)

If you don't mind my asking... Are these cash buys or are you financing?

If you are financing could you share some advice on leveraging assets, etc. 

I am land hungry too. I have 3 joined properties and want to buy one neighbor out


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## handymama (Aug 22, 2014)

Tim, do you by any chance have Irish blood?


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## DEKE01 (Jul 17, 2013)

Tarbe, I'm right there with you. 2011 - 168 acres, 2014 - 5 acres with a house, in 2 weeks, 37 acres with a house and barn and I have my eye on two pieces, 8 acres and 10 acres bordering the 37. When they want to sell well below market rates, I can't say no.


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## unregistered353870 (Jan 16, 2013)

I know the feeling of not feeling bad about buying land. Even the few times I've paid a little on the high side, I never regretted it. I get more buyer's remorse paying a few cents high for a bag of potatoes than I ever could on a few thousand dollars high for land.

I must add, though, that land is very different than houses. I have several times regretted paying too much for houses.


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## Tyler520 (Aug 12, 2011)

in my opinion, land is the single best investment anyone can make in today's world - practically the only thing with a truly fixed supply, and with truly intrinsic value.

big investors are snatching up land left and right...especially arable land - if you can afford it, do it too.


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## tarbe (Apr 7, 2007)

DEKE01 said:


> Tarbe, I'm right there with you. 2011 - 168 acres, 2014 - 5 acres with a house, in 2 weeks, 37 acres with a house and barn and I have my eye on two pieces, 8 acres and 10 acres bordering the 37. When they want to sell well below market rates, I can't say no.


You have me beat brother!

We might be related.


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## tarbe (Apr 7, 2007)

jtbrandt said:


> I know the feeling of not feeling bad about buying land. Even the few times I've paid a little on the high side, I never regretted it. I get more buyer's remorse paying a few cents high for a bag of potatoes than I ever could on a few thousand dollars high for land.
> 
> *I must add, though, that land is very different than houses. I have several times regretted paying too much for houses.*


I agree completely. 

Especially when buying land that is contiguous to land you already own.

That land is likely worth more to you than anyone else in the world, for obvious reasons!


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## tarbe (Apr 7, 2007)

PasturedPork said:


> If you don't mind my asking... Are these cash buys or are you financing?
> 
> If you are financing could you share some advice on leveraging assets, etc.
> 
> I am land hungry too. I have 3 joined properties and want to buy one neighbor out


The first 3 were cash deals.

I don't have enough cash outside my IRA to do this 4th one the same way, and my wife and I agree that we won't suffer penalties and tax hits to do this one cash with money from the IRA.

Fortunately our cash flow is good as we are both still working and the kids are no longer expensive to us (!), so we plan to borrow for this one, but intend to pay it off in about 4 years (prior to retiring for good).

The bank I am talking to has even gone so far as to say we don't need to bring cash into the deal, seeing as we own 166 contiguous acres free and clear. Not sure I will use any of the existing land as collateral though. 

Not sure if that answers your question?


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## tarbe (Apr 7, 2007)

handymama said:


> Tim, do you by any chance have Irish blood?



Haha...none that I know of! 

German on my mother's side and Austrian on my Father's.

Are Irish known as Landoholics?


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## DEKE01 (Jul 17, 2013)

Tarba, see the link. it may or may not be right for your circumstances, but you can transfer some or all of your IRA to a self directed IRA and invest the funds in real estate. 

http://www.forbes.com/sites/deborahljacobs/2012/06/06/how-to-invest-your-ira-in-real-estate-gold-and-alternative-assets/


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## tarbe (Apr 7, 2007)

DEKE01 said:


> Tarba, see the link. it may or may not be right for your circumstances, but you can transfer some or all of your IRA to a self directed IRA and invest the funds in real estate.
> 
> http://www.forbes.com/sites/deborahljacobs/2012/06/06/how-to-invest-your-ira-in-real-estate-gold-and-alternative-assets/




I had heard of self-directed IRAs, but never bothered to research them to find out what they were and what made them unique.

Very interesting...thanks for the education!


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## secuono (Sep 28, 2011)

Wow, wish I could afford that much land! 
18 acres next door is 1/3 a million! 
We should be using prime VA, MD, NC, PA land for farming and not billions of houses!
I literally choke up driving through what used to be lush farm land and is slowly being built on for houses...


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## handymama (Aug 22, 2014)

Irish love their land and value it above pretty much anything, no matter how much or how little.


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## idigbeets (Sep 3, 2011)

Yea land must be really cheap in TX and MO... because its 6k-50k an acre here depending where you are... MD/PA/VA/WV


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## wwubben (Oct 13, 2004)

tarbe said:


> Not intending to make light of the seriousness of alcoholism....
> 
> But I cannot seem to stop making deals on land.
> 
> ...


Is this land tillable?Does it provide an income?That amount of land here would cost a couple million dollars or more.Land is the best place to put your money I would agree.


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## LoonyK (Dec 12, 2009)

Not really a buyer's market in this area, seems most sells by auction for high prices, though if land came up for sale next to mine, I would want it and probably pay more than I would like to.


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## tarbe (Apr 7, 2007)

wwubben said:


> Is this land tillable?Does it provide an income?That amount of land here would cost a couple million dollars or more.Land is the best place to put your money I would agree.


No...good for growing trees, hunting, or cleared for pasture. But not productive enough for intensive farming. Hence the $1k/acre price.

My income comes from my work and from my investments. I don't see this land as an income producer, although I could make some income off timber...but I'd rather have the trees/acorns.


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## Pony (Jan 6, 2003)

Yeah, but when are you guys to shoot that musket and GET HERE? LOL

We'll let you know when the Spring Fling happens. Maybe this year we'll get you up the road to our place.


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## SkizzlePig (May 14, 2006)

Hey, Tim ... Do you use a realtor or send a letter to the seller or knock on their front door or ... ?

DW and I are considering purchasing a joining tract and don't really know where to start.


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## DEKE01 (Jul 17, 2013)

SkizzlePig said:


> Hey, Tim ... Do you use a realtor or send a letter to the seller or knock on their front door or ... ?
> 
> DW and I are considering purchasing a joining tract and don't really know where to start.


I go on the county website, look up the plot to find the owner, mailing address, historical prices and dates of each transfer, taxes, improvements, etc. I've sent letters on three properties, one came back as a bad address, one wouldn't consider a sale because the property is in an estate-trust that is apparently being fought over by the heirs, and one I was able to make a purchase. The purchase was a bank owned foreclosure so in many ways, without an emotional seller involved, it was the easiest transaction I've ever done. 

:hijacked: I'm a week away from closing on what will be my home and that seller is VERY emotional. He's threatened to kill the deal, pouted, stomped his feet, cursed, sent me vaguely threatening emails. The seller is angry about the terms of the deal that he signed and for the last 5 weeks he has refused to speak or email his own realtor. 

It has been my worst experience buying property to include a 2 day long battle that ended this morning with the seller's lawyer trying to make me pay the lawyer $1100 in legal fees at closing. All of the lawyer's time and effort was on the seller's behalf trying to change the terms of the deal in the seller's favor after everyone, including the lawyer, had signed the contract.


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## MichaelZ (May 21, 2013)

Tyler520 said:


> in my opinion, land is the single best investment anyone can make in today's world - practically the only thing with a truly fixed supply, and with truly intrinsic value.


Other than moon rocks, that is. 

Seriously though, I agree. If you don't farm it, you can hunt on it. Or you can parcel out some for your kids.


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## tarbe (Apr 7, 2007)

SkizzlePig said:


> Hey, Tim ... Do you use a realtor or send a letter to the seller or knock on their front door or ... ?
> 
> DW and I are considering purchasing a joining tract and don't really know where to start.


Pretty much all of the above, depending on the situation.

I have a 20 acre piece to the west of me right now that I am contemplating calling the owner in FL. 

The trouble with cold-calls is the land owner (often rightly!) thinks he has the upper hand as you are coming to him/her, "begging" to buy their land. So you have to be careful with this approach!

I did buy a chunk of my one neighbor's places, and I did buy it at somewhat of a premium but considering how it tied my original 80 acres to the road and has the best building site, I felt it was worth the premium. But there was never any doubt who had the upper hand. I fought as best I could, but...

Most of the acreage was purchased off listings though. You just need to keep a sharp eye!

I signed the contract today on this latest piece. The listing Realtor told me he has a full-price offer on the table that came in mere hours after my offer was accepted, and the other buyer has expressed interest in talking to me about purchasing all or part of this acreage. So I think the importance of timing cannot be over-emphasized. I very nearly lost this place (I shudder at the thought).

Good luck with your venture. Just try not to sound too excited or desperate!


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## tarbe (Apr 7, 2007)

Pony said:


> Yeah, but when are you guys to shoot that musket and GET HERE? LOL
> 
> We'll let you know when the Spring Fling happens. Maybe this year we'll get you up the road to our place.


One thing for sure...buying land every 14 months or so is making work more necessary!

I will keep my eyes open for the fling! Would love to meet you and the other "locals".

I did make it over to Ozark Tom's place when I was on a quick out and back trip. I usually don't have an hour to spare when I make these trips, and it is a real shame! Spending time with like-minded folks is often more valuable than any work I might get done!


Tim


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## Pony (Jan 6, 2003)

tarbe said:


> One thing for sure...buying land every 14 months or so is making work more necessary!
> 
> I will keep my eyes open for the fling! Would love to meet you and the other "locals".
> 
> ...


Tom and Kathleen have a sweet set up, and they are very gracious hosts!


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## Michael W. Smith (Jun 2, 2002)

I'm always on the lookout for more land. My best deal came with land that was for all intents and purposes "landlocked". 

The people that I bought it from got the land from their parents who were merchants and had a store. The owner of the land got too far into debt and in exchange for the loan to go away, gave the merchants their land.

12 acres of woods and the only access they had to it was an easement that they could drive to it over our property, but weren't allowed to do anything anything other than drive to it. At one point they wanted to have it logged, but my wife's relatives wouldn't give them permission for log trucks to go over our land.

I told them one time that if they ever wanted to sell, I would appreciate being first chance. About 3 years later they stopped by and asked if I was still interested in the 12 acres of woods. I couldn't hardly scramble fast enough when they said they wanted $1000.00 / acre!

My "missed" piece of property was adjoining property that was owned by a big corporation. I sent them a letter telling them I owned land that adjoined part of their 200 + acres, and if they were ever so inclined to sell, I would appreciate being given first chance. Never heard back from them.

Some 8 to 10 years later, I found out they sold the whole 200 + acres for around $500.00 / acre. I was sick. I should have kept on them. The new owner had bought it shortly before gas wells were being built all over our area - so I'm sure they got their money back in signing up bonus's and gas royalties.

Other than that, I did buy the 40 acres my Dad owned. After he died, I bought the siblings out. At some point I will have it logged, but at this point in time, somebody is using the property for hunting and pays me over 3 times what it costs in property taxes. So I'm still making out doing nothing other than letting the trees grow bigger each year!

It's possible I could get some more acreage off the neighbors if they would ever sell. But the one neighboring property is owned by 3 people who inherited it from their parents - and they currently seem to be okay just sitting on it.


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## tarbe (Apr 7, 2007)

Thought I'd share a couple pics of the cabin on this parcel;


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## LoonyK (Dec 12, 2009)

looks like a nice view


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## dancingfatcat (Jan 1, 2008)

cute place!


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