First Land Purchase

Jon from Michigan asks,



Hi Bill, Glad to see you sharing your knowledge and experience again on YouTube! I am looking to make my first land purchase on a small budget using my 401k, home equity and some cash as a down payment. My question for you is what to look for and prioritize in this first purchase. In your opinion, what is the minimum acreage, timber, tillable, topography, etc. that I should be considering in order to make this a worthwhile investment and sell as a turnkey hunting property a few years down the road? Thank You and Good Luck this hunting season!




Bill responds,


Topic: First Land Purchase:

First Land Purchase

The most important thing to know when buying land is what other similar properties in the area are selling for so you can recognize value. Then, I think the location (neighborhood) is most important to know. Which areas are good for hunting and which areas would also be good for building sites. These are all important factors when looking to buy a smaller sized property.

Jon,

For sure you need to find something that is priced at least relatively well to the current market.  So spend some time studying real estate listings and even auction prices to find out what land is selling for in various areas near you.  I know that there are resources that show what land sells for as this is publicly available.  Learn as much as you can about price first so you can recognize a good value when you see it. That way you can act fast if necessary.

I think a nice 40 acre piece not too far from a town or city would be ideal at first because this could go to a hunter or to someone wanting a building site.  It would ideally have roughly 75% cover if it is small – let’s say under 100 acres.  And probably would be OK if it is 50-50 cover to ag/open if it is larger than that.  

If it is hunting land, if the property is in a recognized good hunting area, that also helps.  I realize there aren’t as many managed neighborhoods in Michigan as in some states, but that is still a consideration. In other words, if you wouldn’t buy it for yourself to keep forever, then don’t consider buying it with the thought of resale. 

What would get you excited about a piece of land?  That is probably the same thing that will get the next guy fired up.  Good neighbors is a big deal.  That should a be a priority for that reason.

Again, understanding value is the most important thing.  Then you can act decisively when needed.  Good luck.  You are in for some real excitement over the next few years. (8/31/22)

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Comments (2)

  1. Jon

    Bill,
    Thanks for the advice, I appreciate it. You are absolutely right about the deer management neighborhoods in Michigan. Ultimately my goal would be to work closely with neighbors on the management side and create great hunting habitat. That should also increase the return on my investment. This will take time but, as they say.. the joy is in the journey. I’m looking forward to the next few years.

    1. Bill Winke

      Definitely worth the effort, both for your hunting and your investment. Good luck.

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