As some know I run a pretty small farm, mostly old school equipment, I hope to be using some modern ideas with that.
Month ago neighbor approached me, would we like to buy some land from/through them? They got a deal on 160 acres they were renting forever (their dad actually started renting it, been 'theirs' for many decades), but couldn't swing the whole 160 because of the timing of this farm economy. Some of it was right by their yard.
If we went in and bought some of it, they could do the rest. Otherwise, it would go up for auction, and we all would have new neighbors.
The trick was, at this point there was less than 4 weeks until the deal ended and the auction would be set up. So we had to yes or no in about 2 days and then massive paperwork in too short a time. Talked it over with the wife, we really don't need to expand, we are close enough to retirement.... Wife said we have really great neighbors, don't want some out of county big outfit moving in and using our property for their end rows, go ahead and help the neighbors and keep things as close to how they are.
Ok.
Got it done, everything been signed for a week, so I think its all good and done now.
Was an interesting experience. Two days to decide if you want to buy 55 acres in this farm economy, and less than 3 weeks to find the money, and then it was very complicated as the neighbors did a 1031 exchange, as well as they had to buy all the land and turn a portion over to us. Parcels had to be surveyed and re parceled. I'm leaving out a lot of messy details, but mostly the wife and I sat quietly by and just signed more papers every day, as the banker, lawyer, and title comapnies all sorted out about 2 months of work in 21 days. We used the same lender they did so it was a lot easier for everyone that way, lender was more motivated to get it all done with two customers and was able to get shared paperwork done faster, not wait to hear from one lender to the other.
That was an interesting experience. We would get some papers emailed at 4:00pm, and needed to get it back signed by 10:00am the next morning to keep things on schedule. Wife and I are pretty low key, low debt, keep out of people's way types, so was a lot of new things for us.
I think it makes some sense for us, hope it helps the neighbors too. They got to keep 40 acres next to their yard they wouldn't have. They kept thanking us for helping them out, little odd to have a younger farm family asking you to help out by buying land from them.....
Now I guess we are the BTO in the neighborhood, wheeling and dealing! went so fast I don't think its set in yet. (We are still far smaller acres than county average these days....)
Crazy month. I'm not great at doing my tax book work on time, so was fitting that full time job into the same month.....
See where we go from here.
Paul
Month ago neighbor approached me, would we like to buy some land from/through them? They got a deal on 160 acres they were renting forever (their dad actually started renting it, been 'theirs' for many decades), but couldn't swing the whole 160 because of the timing of this farm economy. Some of it was right by their yard.
If we went in and bought some of it, they could do the rest. Otherwise, it would go up for auction, and we all would have new neighbors.
The trick was, at this point there was less than 4 weeks until the deal ended and the auction would be set up. So we had to yes or no in about 2 days and then massive paperwork in too short a time. Talked it over with the wife, we really don't need to expand, we are close enough to retirement.... Wife said we have really great neighbors, don't want some out of county big outfit moving in and using our property for their end rows, go ahead and help the neighbors and keep things as close to how they are.
Ok.
Got it done, everything been signed for a week, so I think its all good and done now.
Was an interesting experience. Two days to decide if you want to buy 55 acres in this farm economy, and less than 3 weeks to find the money, and then it was very complicated as the neighbors did a 1031 exchange, as well as they had to buy all the land and turn a portion over to us. Parcels had to be surveyed and re parceled. I'm leaving out a lot of messy details, but mostly the wife and I sat quietly by and just signed more papers every day, as the banker, lawyer, and title comapnies all sorted out about 2 months of work in 21 days. We used the same lender they did so it was a lot easier for everyone that way, lender was more motivated to get it all done with two customers and was able to get shared paperwork done faster, not wait to hear from one lender to the other.
That was an interesting experience. We would get some papers emailed at 4:00pm, and needed to get it back signed by 10:00am the next morning to keep things on schedule. Wife and I are pretty low key, low debt, keep out of people's way types, so was a lot of new things for us.
I think it makes some sense for us, hope it helps the neighbors too. They got to keep 40 acres next to their yard they wouldn't have. They kept thanking us for helping them out, little odd to have a younger farm family asking you to help out by buying land from them.....
Now I guess we are the BTO in the neighborhood, wheeling and dealing! went so fast I don't think its set in yet. (We are still far smaller acres than county average these days....)
Crazy month. I'm not great at doing my tax book work on time, so was fitting that full time job into the same month.....
See where we go from here.
Paul