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brycecheramie
MMT 1000 Club
Joined: Thu Nov 04, 2010 7:38 am Posts: 4323 Location: Cut Off, La.
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How to make money with your land?
So long story short, my wife and I are interested in buying a tract of land we've found. Plan to build a house on it. Problem is, the land is twice the size we are wanting, and twice the price. We asked to split the land in half, but they are not interested.
Now I'm all for having more land, but I'm looking for a way to use that other half of land to kinda pay for itself. I have been given ideas, and just not sure of other ideas. I was told to try and lease the land out long term to someone who has cattle. I was also told theres major tax benefits to making the land a "Farm".
Any idea? Never really owned a bunch of land to know anything about the benefits.
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Sat Mar 03, 2018 10:16 am |
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Gigafowl
MMT Elite Member
Joined: Tue Jan 13, 2009 7:19 pm Posts: 6441 Location: Trinity Bay - Texas
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Re: How to make money with your land?
How much land ?
Is it inside a city limits ?
By getting a farm exemption before you build your home you can write off much of the cost of the home the way a business writes off costs of expansion.... Not only do you cut your long term tax debt by 10 fold... You get 30% more out of your home building dollars by spending pre tax dollars instead of after tax dollars... What ??? You need to earn $ 130.00 to keep the $100.00 left after you pay taxes....
You also qualify for state grants to install stock ponds that can be stocked with fish and possibly give you some good deer, dove, and duck hunting too - all at near zero cost to you... Then day leasing can bring in thousands of dollars annually if the hunting is good... If it is wooded sell off the timber as a cheap means of clearing fields and require the harvesters to replant where you want timber again in 20 years.... Timber paid for over half of our land costs... Uncle Sam also pays subsidy NOT to grow certain crops and so you grow quality hay in those plots and sell the hay and get paid not to grow something you never intended to grow ???
As my father planned retirement he used these tactics to shelter hundreds of thousands of dollars as investments in a farm business - on about 150 acres of east Texas property...
Get a first class CPA to assist you and setup the farm as a business !
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"It is good to have an end to journey toward; but it is the journey that matters, in the end."
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Sat Mar 03, 2018 10:31 am |
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Exbellicus
MMT Pro Member
Joined: Sat Oct 15, 2016 4:59 pm Posts: 126
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Re: How to make money with your land?
Disclaimer: I live in Texas
Do you know if the land already has an existing ag exemption? If not it can take a long time to get. The land has to be used for the designated ag purpose 5 of 7 years. For example, mine is in hay. The neighbor cuts and bails hay and takes it. He gets free hay, I keep an ag exemption. Based on the numbers, I would guess that I pay 1/10th the tax on my ag exempt land.
Depends on your county, but there are different qualfications for what you have to do to meet the ag requirement. For example, if I wanted mine in cattle, I would need 1 cow for every 5 acres. Or 7 goats for every 5 acres. You can do bees as well. I have to have an outrageous amount of chickens, so I'm out on that. (I think like 200 per 5ac).
You can also convert to a wildlife exemption from an existing ag. Once I dig a big pond, I'm going to convert a portion of mine to wildlife (certain habit requirements etc). In my area there are an abundance of people that would love to run their cattle on my land. A few of them have offered a small amount of money also, but not enough that it's worth the hoof prints and cow shit all over everywhere. You also would get an ag number and anything purchases related to your farm is tax-free (mowers, tractors, feed, etc)
Tax dollar wise it's a great program. I think your best bet (if there is an existing ag exemption) is to keep all but your 1ac homesite in ag. Call the county tax assessor office, I bet they have an info packet they can e-mail over.
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Sat Mar 03, 2018 10:40 am |
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Exbellicus
MMT Pro Member
Joined: Sat Oct 15, 2016 4:59 pm Posts: 126
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Re: How to make money with your land?
oops double post
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Sat Mar 03, 2018 10:40 am |
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brycecheramie
MMT 1000 Club
Joined: Thu Nov 04, 2010 7:38 am Posts: 4323 Location: Cut Off, La.
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Re: How to make money with your land?
I am almost certain it is inside city limits, considering if you go outside of our protection levee you will be in the marsh! It is almost 15 acres. Really don't have the equipment or anything else to keep up that size property, was only looking for about 5 acres, for Bank reasons. I have a good CPA I use, and will give them a call Monday morning.
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Sat Mar 03, 2018 10:40 am |
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brycecheramie
MMT 1000 Club
Joined: Thu Nov 04, 2010 7:38 am Posts: 4323 Location: Cut Off, La.
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Re: How to make money with your land?
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Sat Mar 03, 2018 10:46 am |
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Gigafowl
MMT Elite Member
Joined: Tue Jan 13, 2009 7:19 pm Posts: 6441 Location: Trinity Bay - Texas
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Re: How to make money with your land?
You can grow a stupid amount of tomatoes daily in a small 20x100 hydroponic greenhouse....
Literally a truckload a day of fresh tomatoes to sell - solar runs the pumps and controls....
Have a cajun cousin who started with one and has built several with different foods in each....
_________________ Eat - Sleep - Hunt ! ! !
"It is good to have an end to journey toward; but it is the journey that matters, in the end."
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Sat Mar 03, 2018 10:58 am |
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Exbellicus
MMT Pro Member
Joined: Sat Oct 15, 2016 4:59 pm Posts: 126
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Re: How to make money with your land?
You could also just list the other 10. Although too much land is a good problem to have. Have you checked to make sure it's not all food plain?
_________________ 2016 Prodrive X 1848 37efi
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Sat Mar 03, 2018 2:28 pm |
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brycecheramie
MMT 1000 Club
Joined: Thu Nov 04, 2010 7:38 am Posts: 4323 Location: Cut Off, La.
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Re: How to make money with your land?
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Sat Mar 03, 2018 2:43 pm |
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Exbellicus
MMT Pro Member
Joined: Sat Oct 15, 2016 4:59 pm Posts: 126
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Re: How to make money with your land?
Hmm..got any buddies who might be interested in part of it? Maybe the seller would split if both buyers were all lined up? I don't know of any way that small of piece of land would be immediately profitable
_________________ 2016 Prodrive X 1848 37efi
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Sat Mar 03, 2018 2:59 pm |
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brycecheramie
MMT 1000 Club
Joined: Thu Nov 04, 2010 7:38 am Posts: 4323 Location: Cut Off, La.
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Re: How to make money with your land?
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Sat Mar 03, 2018 3:02 pm |
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Cecilia99
MMT Member
Joined: Tue Dec 26, 2017 5:24 pm Posts: 19
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Re: How to make money with your land?
Build some low income subsidized housing. Always could use lots of that. You would get great tax credits and steady income.
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Mon Mar 05, 2018 2:28 pm |
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MNGunner
MMT 1000 Club
Joined: Mon Jan 09, 2012 8:56 pm Posts: 2623 Location: Minnesota
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Re: How to make money with your land?
Is it tillable? Up here you can lease easily to a farmer for ~3% the cost of the land/year. Also look at conservation programs (e.g. CRP)
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Mon Mar 05, 2018 2:31 pm |
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Russ
MMT 1000 Club
Joined: Mon Dec 31, 2012 11:07 pm Posts: 4820 Location: West Monroe, LA
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Re: How to make money with your land?
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Mon Mar 05, 2018 3:01 pm |
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brycecheramie
MMT 1000 Club
Joined: Thu Nov 04, 2010 7:38 am Posts: 4323 Location: Cut Off, La.
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Re: How to make money with your land?
_________________ Refurbishing a Prodrive
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Mon Mar 05, 2018 3:02 pm |
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brycecheramie
MMT 1000 Club
Joined: Thu Nov 04, 2010 7:38 am Posts: 4323 Location: Cut Off, La.
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Re: How to make money with your land?
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Mon Mar 05, 2018 3:04 pm |
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RootSumn
MMT 1000 Club
Joined: Thu Jan 13, 2011 11:55 am Posts: 1126 Location: Hawthorne, Fl
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Re: How to make money with your land?
Start growing that sticky icky. If the ducks won’t eat it, you won’t care.
_________________ 1654 Grizzly '13 35 GDSD
"You should be more concerned with watching football than making chit fall out the sky!!!" - My Wife
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Mon Mar 05, 2018 8:44 pm |
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da go get'er
MMT 1000 Club
Joined: Wed Oct 27, 2010 8:30 am Posts: 3406 Location: Prairieville
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Re: How to make money with your land?
Check out NRCS easement programs. If your land qualifies, the govt buys the development rights. They’ll pay you and turn the land into wildlife habitat. However, you’ll own it but will be limited as to what you can do with the property.
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_________________ 17*38 Klibert 23GDLT I toast to staying positive and testing negative!
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Thu Mar 08, 2018 7:02 pm |
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