I do appreciate the comments. The cell tower contract states that the owner will be paid $1,300 per month for 60 years. Rent will increase a total of 5% every 5 years (or slightly less than 1% per year on a compounded basis...). This property also has the benefit of some very large power lines on metal towers crossing it, so we continue to look elsewhere. I have found a lot of places in this county that I didn't know about... If nothing else comes of this excitement, learning the area will be a good side benefit. Thanks again for the comments.
</font><font color="blue" class="small">( OkeeDon:
<font color="blue">There is no divided loyalty; by law all the loyalty goes to the one paying the commission. </font>
Right on. The broker/agent (different legal categories) is a hired hand and works for the seller. They "find" a buyer for the seller, that's all. In fact, you might get better efforts dealing with a listing broker, since he doesn't have to "split" the commission with a second agent/broker you might be dealing with. Your guy is your attorney (who reviews the deal, etc.).
<font color="blue">Unfortunately, most real estate deals become emotional; the buyer "owns" the property in his mind and starts letting emotion overcome good sense in order to complete the deal. Be prepared to walk away without regret; I guarantee you another property will come along. </font>
Amen.
One suggestion about the price of land right now (see cowboydoc's comment). Judge the value on the basis of its productivity, i.e. the yield. Land near population centers is also based on pressure and emotion. Current low interest rates drive up prices based on that pressure and emotion. That will change. Personally, my opinion is that unless a piece of ground yielded 5% - 10% return in real money it's overpriced. Take the price of the ground, add any improvements, plus labor, then take 5% of that. Will you make that off the horse/riding operation? If yes, fine. If not, keep looking. Land will come down from here FOR CERTAIN (when measured in gold money). In north-central Missouri 150 bushel corn land can be had for around $1,500. A maybe situation.
Finally, around here, land with any type of tower on it (Re: the comments on a cell tower) greatly reduces the value. Unless the owner is getting a nice income stream off it it's not worth it.
JEH )</font>
</font><font color="blue" class="small">( OkeeDon:
<font color="blue">There is no divided loyalty; by law all the loyalty goes to the one paying the commission. </font>
Right on. The broker/agent (different legal categories) is a hired hand and works for the seller. They "find" a buyer for the seller, that's all. In fact, you might get better efforts dealing with a listing broker, since he doesn't have to "split" the commission with a second agent/broker you might be dealing with. Your guy is your attorney (who reviews the deal, etc.).
<font color="blue">Unfortunately, most real estate deals become emotional; the buyer "owns" the property in his mind and starts letting emotion overcome good sense in order to complete the deal. Be prepared to walk away without regret; I guarantee you another property will come along. </font>
Amen.
One suggestion about the price of land right now (see cowboydoc's comment). Judge the value on the basis of its productivity, i.e. the yield. Land near population centers is also based on pressure and emotion. Current low interest rates drive up prices based on that pressure and emotion. That will change. Personally, my opinion is that unless a piece of ground yielded 5% - 10% return in real money it's overpriced. Take the price of the ground, add any improvements, plus labor, then take 5% of that. Will you make that off the horse/riding operation? If yes, fine. If not, keep looking. Land will come down from here FOR CERTAIN (when measured in gold money). In north-central Missouri 150 bushel corn land can be had for around $1,500. A maybe situation.
Finally, around here, land with any type of tower on it (Re: the comments on a cell tower) greatly reduces the value. Unless the owner is getting a nice income stream off it it's not worth it.
JEH )</font>
