Creative ways to pay-off your farm

[SkizzlePig]

My wife and I are ever closer to purchasing some property in Southern Oregon. With that, I'm beginning to think more and more about actually *paying* for it rather than just *looking* for it.

That said, I know there's some creative ways to pay for your property. For example, selling the lumber off the land or leasing a hilltop to a cellular company for a tower or leasing a piece of your land to a fellow rancher.

Any other ideas we should consider?

[bare]

It would be a rare land contract that would allow you to do ANY logging until the property was paid off, so unless you have that kind of cash or credit, I wouldn't be counting on paying down the note from the timber on it.

[Cheryl in SD]

We have friends that did just that, bought on a note, logged the timber & paid it off.

[littlebitfarm]

My cell tower covers my mortgage! When they stuffed mailboxes, with the offer, all along the road I realized I could look at it for free or I could get paid. Didn't take long to decide!

Kathie

[brownthumb]

but cell towers are soooooooo ugly. I'd rather be poor and have a view I cherish.

[swollen tongue]

pay cash!!!!!

[littlebitfarm]

Originally Posted by brownthumb

but cell towers are soooooooo ugly. I'd rather be poor and have a view I cherish.

I didn't want one either. My view was going to change either way. If I didn't do it my neighbor would have. Then I would have to look at it for free. Money made sense to me!

Kathie

[sewing nana]

Originally Posted by littlebitfarm

I didn't want one either. My view was going to change either way. If I didn't do it my neighbor would have. Then I would have to look at it for free. Money made sense to me!

Kathie

Did they contact you? What kind of $$$'s are you talking about....

[agmantoo]

Prior to shopping for land, I attempt to determine what my budget will permit. Why shop when you can be wasting time looking at something you cannot afford? Short of being born with a silver spoon in ones mouth most of us pay for our purchases the hard way, we work for the income. Sure there are windfalls but a person cannot rely on such. Seeking to be able to pay for property with good fortune is somewhat like winning the lottery, it is unlikely!

[SkizzlePig]

Originally Posted by agmantoo

Prior to shopping for land, I attempt to determine what my budget will permit. Why shop when you can be wasting time looking at something you cannot afford? Short of being born with a silver spoon in ones mouth most of us pay for our purchases the hard way, we work for the income. Sure there are windfalls but a person cannot rely on such. Seeking to be able to pay for property with good fortune is somewhat like winning the lottery, it is unlikely!

I hardly think trying to find creative ways to pay off a debt early is akin to playing the lottery. I'm not talking about finding a property that we can't afford then hoping and wishing the right numbers are drawn Saturday night. I've read and re-read my post and I'm not exactly sure where you've made that leap.

By that thinking, no one should try to improve their position with smart financial planning. They would just work harder at the factory. THAT seems utterly silly to me. If there are viable options for income that most people don't explore, how can you say that those options are without value?

As you don't understand the desire to get out of debt sooner than expected, I equally don't understand your interest in limiting your financial options. You have no interest in looking for alternatives to paying down a 30 year mortgage or saving for 15 years to pay cash?

Suffice it to say that there are other options ... unfortunately, it appears that some will not exercise these options.

[EasyDay]

Lease the mineral rights.

BTW, it's not unusual around here for one to sell the timber before the land is paid off. Pretty common, actually.

[Woodroe]

Cell towers are hideous and omit radiation. Cancerous

[lonelyfarmgirl]

thats what I thought. would not cell towers put off radio signals that severly damage the body, including livestock and crops?

[hillsidedigger]

Cell towers are terrible. Thats why the cell companies must pay so much to get sites.

Land can be leased to hunters and some money might be obtained from agencies and land trusts who attempt to further conservation goals.

[littlebitfarm]

Originally Posted by sewing nana

Did they contact you? What kind of $$$'s are you talking about....

They did contact me. The amount varies depending on your area. I'm not supposed to disclose the amount. But it does more than pay my mortgage and there is a 3% increase every year. Contract is for up to 25 years.

It will make a significant difference in my ability to retire!

Kathie

[bill not in oh]

Kathie

What happens to the tower when the contract expires?

[Silvercreek Farmer]

Some people are leasing land for wind mills, same idea as the cell tower, but it all comes down to if you have an appropriate site...

[oz in SC]

For those interested:

What does a lease pay?

A: It depends on the area and other factors, but what I've seen is around $800 - $1500 per month for a typical raw land build. Sometimes $500, but that's pretty low. For a rooftop site, it varies even more. I've seen them as low as $250 (rare) and as high as $10,000. VERY rare! If you have difficult building conditions, they'll want a lower rent. For example, if they have to trench a quarter mile to bring in electricity and phone connections, that's a big expense up front. If someone is going to build a tower, be sure to get a percentage of any future rents. And keep in mind that most tower companies are in financial trouble these days. There's considerable downward pressure on costs.

http://www.privateline.com/Cellbasic...#anchor1431601

I sure wouldn't mind being paid $1200/month for having a cell tower on my land.

[agmantoo]

Unlikely Farmer, the first portion of your username seems to me to represent the chances you have for an easy solution to payment and to holding a property that you anticipate in buying. It is fine to wish for alternate methods to offsetting the purchase but what I am saying is do not bank on it. If it were all that easy many others would also be implementing such a plan. To avoid disappointment and possible foreclosure you need to have the earning capacity to meet the mortgage payment and then spend the time concluding how to find an alternate solution. I never make a substantial purchase without having 2 ways to make the payment. This avoids lots of grief and anxiety, also you can sleep a lot easier. Just be a cautious and an astute buyer is what I am trying to state.

[littlebitfarm]

Originally Posted by bill in oh

What happens to the tower when the contract expires?

When it is all said and done the ground is to be returned to original condition. Some contracts are written so when it is done the tower is yours.

Kathie