Buying Land How To

BentBarrels

New member
I have for years been interested in buying land in South Dakota for hunting. I just have never researched how it is done, what it involves etc.

I think having a thread with how to go about finding land, how it is financed, etc would be great.

So how do i go about finding pheasant land in south dakota?
How is it financed?
What can I do to make it cash flow (crp...how does that work???), etc
 

Dakotazeb

Well-known member
Your quest to buy land in South Dakota is one that is perhaps shared by many. However, it is probably at best a dream unless you are extremely wealthy. Land values have skyrocketed in recent years and are now at a point that trying to cash flow it is nearly immpossible. Especially if you want some good hunting land. Here in the Aberdeen area we have seen land sell for $3,000 to 4,000 per acre. Of course this is generally some good farm ground. Marginal land can be bought for less but then the potential return is less also. A number of years ago a lot of land was being bought by non-farmers for hunting, etc. That drove prices up. But in recent years it has been farmer bidding against farmer that has driven prices to today's level. In many cases the farmer can't make a land purchase cash flow but they justify it by averaging into the rest of their land that has little or no debt.

So unless you have some deep pockets it's just not feasable. If you do some research on "land for sale in South Dakota" you should find a number of realtors across the state that specialize in farm land and hunting land. Here's one site you can check out. http://www.dakotaproperties.com/

Good luck, but I think you will find out it would be less expensive to "pay to hunt" each year than try to own land.
 

UGUIDE

New member
I have for years been interested in buying land in South Dakota for hunting. I just have never researched how it is done, what it involves etc.

I think having a thread with how to go about finding land, how it is financed, etc would be great.

So how do i go about finding pheasant land in south dakota?
How is it financed?
What can I do to make it cash flow (crp...how does that work???), etc

BB, I too would recommend Dakota Properties. I'd talk to Jeff Garrett and tell him I sent cha. He is the owner and knows his stuff. Buyers fees are usually paid out of sellers commission so crazy not to have agent working for you. I was were you are at when this whole thing began and I didn't know "jack" about anything. Best wishes.
 

BentBarrels

New member
Chris - How does financing typically work on land.

Is it 10% down, 20% down etc?

20 year, 30 year???

I was actually hoping you would contribute to this thread with your weatlh of knowledge on how purchasing land works.

How do rent out land to farmers....crp.....hunters....etc
 

UGUIDE

New member
Chris - How does financing typically work on land.

Is it 10% down, 20% down etc?

20 year, 30 year???

I was actually hoping you would contribute to this thread with your weatlh of knowledge on how purchasing land works.

How do rent out land to farmers....crp.....hunters....etc

BB, what you need is a good realtor. They can answer all these questions. A good banker can handle the financing stuff too. I recommend Wells Fargo in Mitchell or any Farm Credit Service bank.

Land purchase is typically 20% down and mortage for 20 years and you hope it can cashflow but probably not. If you do a 30 year mortgage you don't pay much on principle every year.
 

Bob

New member
Find an area where you would like to set up. Check with the Realtors in the area, place a "wanted land" advertisement in the paper, visit with people about the community. Realtors are your best bet though remember that is their business. Look at the land, is it farm/pasture/wildlife habitat or a mixture. To have pheasants you need nesting first, that is usually grass or grass alfalfa mix. Winter wheat is good as well it usually grows tall enough a pheasant will have enough cover to nest in. Also look at the surrounding land, more stable nesting is more birds. Water is your next important matter and some say the birds don't need it but if you have hunted S.D. the birds are usually around a water source. Having some tillable soil on the place to plant a cane milo mixture is important for hunting and winter feed. Leaving or creating a weed patch or two is always icing on the cake. A large tree belt 10 rows or more is better than a five row. A large cattail patch is probably some of the best hunting and winter habitat. Financing usually will have to be arranged by a lending institution that knows you or you present the credentials to one then convince them that you can pay for the land. It is pretty easy to find a farmer that will lease the farming and you can usually negotiate the food plots. Cash flow???? You'll get a return but it really should be looked at as you will have a bunch of enjoyment from the purchase of it and that it is yours, you can walk on it, make decisions about it obviously hunt as well. Remember life is made to live not save it in the bank. Also, historically land has gone up in value so I think it is a good bet and the odds are in your favor. I really don't think the value will crash. So if you can hold on to it till you pay it off you'll have gotten something of value in the ownership but then also you will own it and it will have value. Raw land has little to no depreciation, land with buildings does. Though all buildings need maintained and if they have any value you will be taxed on them. Plus you have to worry some about the possibility of vandalism from people weather and wildlife vermin. I have gone with the raw land, tried to buy as much as the bank would lend me, I look at land for farming, wildlife habitat then what I could do to enhance for wildlife often just a little goes along way. Very important I like it on a road that I can travel on when the weather is bad. Lowland is better for pheasants than hilltops. Just some thoughts, I'm sure there is more. I'm glad I bought some when I did even though people told me it was priced too high. It is nothing but higher now and I've had more fun on it than one should. I think and I'm speaking for myself that the price of land will keep up better with inflation than money in the bank. Again, life is made to live.
 

landman

New member
Well, in simple form - commit to yourself that you will buy land, save the down payment, obtain financing approval, find land to buy, negotiate or bid, if unsuccessful then try again, keep trying until you make a purchase.
 
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Wild Side

New member
How to buy land

Start with 4 guys, look for a 40 acre parcel to start with, if you have more money, think bigger. Figure out what you want out of your parcel and prioritize. Rent, crops, nesting cover, late season cover, grass, weeds, water, etc.

Plan on 20 to 25% down, 20 year amortization, can go 25, sometimes 30 but best payment value is 20. Payment will be a little over $100 a month per guy. Tell your wife it is a retirement investment akin to a 401k - works great after recent stock market gyrations. If you buy as a group, work out the details BEFORE you buy. Things such as buy sell agreements, how to value if someone wants out, who gets to hunt when, who gets to bring guests, what happens if somenone misses a payment, etc.

Know the local land requirements, if you buy pasture land, you may have a tough time even getting approval to break soil for a food plot. Or the other direction, they also may not like you to take productive land out of production for cover. And in most areas, even if the land isnt in production, local regulations require that the parcel be sprayed for noxious weeds.

When you start looking for land, and you go with a smaller parcel, the best pheasant value is to go with land that isn't cropped. Although everyone loves to hunt a stand of corn or milo, once its picked, it won't hold many birds. A mixture of garss and a food plot will always have some birds and it will only get better as the season progresses.

When looking at land be sure to see the potential not the current status. With a little bit of work each year just about any 40 acre parcel can be a pheasant mecca. Pay special attention to the surrounding land, Most pheasants only range a mile or so from where they are born. Does the surrounding land have good potential? Iamgine what it looks like after harvest, wherre are the birds going to go?

Once you find something you like you have to figure out who is going to manage the land, perform upkeep on fences, spray for weds, put in food plots, watch the proeprty, keep of trespassers etc. This brings us to the next topic.

The best friend to make in South Dakota is one of your neighbors. They will probably not like you at first Most farmers think you are crazy for wanting to farm for a stupid bird. You are going to be that yuppie out of towner driving the fancy truck or SUV, take valauable land out of production (and food and money out of some farmers mouth) drive land prices up for farmers, and blow into town 2 or 3 times a year to tear up their roads. Get to know the local realtors, the local bankers, other business owners, and the neighboring farmers. Spend money in town at the grocery store, hardware store and don't just visit in the fall during hunting season, visit in the spring and summer too.

Also as you close in on your purchase find out what sort of porgrams are out there to improve your poroperty for wildlife. SD has a ton a programs out there. Some may cost share, some may be to provide advice, one of the most popular is the shelter belt planting program. You want birds - have a shelter belt put in. Also find the local conservation district office where you can buy trees.

Lastly. seek out the local Pheasant Forever Chapter. The have biologists that can assess your proety as well as cost share programs for things such as shelter belts, dugout ponds, dirt dams etc. Your property will have much more wildlife with a water source and cattails are a late season magnet. Also when working with the local PF, attend their banquet if posisble (many in SD are 1st or second weekend of season), if you can't make it, buy tickets or support their raffles over the phone, or donate something for their auctions. Going back to the know your neighbors topic, no better way than supporting the local PF chapter - you would be surpirsed how many local business owners are invloved in the local chapters. And anytime you are in town, invite them out to dinner, or buy them a drink, have them join you for a hunt - once you own land out there remember that you are a stakeholder in the local economy.

Good Luck
 
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