Creative ways to pay-off your farm

Discussion in 'Homesteading Questions' started by SkizzlePig, Jan 21, 2007.

  1. SkizzlePig

    SkizzlePig Well-Known Member

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    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?
     
  2. bare

    bare Head Muderator

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    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.
     

  3. Cheryl in SD

    Cheryl in SD Living in the Hills Supporter

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

    littlebitfarm Scotties rule! Supporter

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    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
     
  5. brownthumb

    brownthumb Well-Known Member

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

    swollen tongue Well-Known Member

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  7. littlebitfarm

    littlebitfarm Scotties rule! Supporter

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    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
     
  8. sewing nana

    sewing nana Well-Known Member

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

    agmantoo agmantoo Supporter

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    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!
     
  10. SkizzlePig

    SkizzlePig Well-Known Member

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    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.
     
  11. EasyDay

    EasyDay Gimme a YAAAAY!

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    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.
     
  12. Woodroe

    Woodroe Well-Known Member

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    Cell towers are hideous and omit radiation. Cancerous
     
  13. lonelyfarmgirl

    lonelyfarmgirl Well-Known Member Supporter

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

    hillsidedigger Well-Known Member

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    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.
     
  15. littlebitfarm

    littlebitfarm Scotties rule! Supporter

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    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
     
  16. bill not in oh

    bill not in oh Well-Known Member

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    Kathie

    What happens to the tower when the contract expires?
     
  17. Silvercreek Farmer

    Silvercreek Farmer Living the dream. Supporter

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    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...
     
  18. oz in SC

    oz in SC Well-Known Member

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    For those interested:

    http://www.privateline.com/Cellbasics/leasinginfo.htm#anchor1431601

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

    agmantoo agmantoo Supporter

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    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.
     
  20. littlebitfarm

    littlebitfarm Scotties rule! Supporter

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    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