wildwestinvest! 19 Report post Posted September 26, 2012 I get calls from people with these larger horse properties who are interested in selling. Frustrated with their realtors, and spammed by me, they call asking what I can do for them. I have 2 issues: 1_ how to value a property like this 2_ questions about the risk of an LP in the first case, there's so much to analyze: sanitation, roads, creeks, public land access, pasture types, barns, fences, etc etc etc etc. I'm having a devlish time calculating a price. 200k? 300k? 400k? 500k? 600k? 700k? that's quite a range! in the second, these properties MUST be maintained or they are worthless. I feel like a CA is the only acceptable way to get involved. If I'm sammiched between an owner and a t/b who lets 17 acres of irrigated land go..... uh, not where I want to be. Any thoughts, experiences, anecdotes about LPing horse properties, or any other properties with land+amenities? If I can find the right strategy for these, the demand for them is HIGH, and there's profits to be gathered. Thank you, Nick Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 26, 2012 Nick, you are right on with your "there's profits to be gathered" mindset. So if these type properties are available it behooves you to make your move and cash in. I recall from my days back on the range in NM, that whenever I had a horse property I was suddenly the most popular thing since canned beer.Valuing these properties shouldn't pose as much of a hurdle as you anticipate. For starters, if the homeowner has been trying unsuccessfully to sell with a Realtor, he will have a market analysis with sales data. You can review it and make a realistic determination for yourself.Better still, perhaps the homeowner has a recent appraisal. . .not likely but always ask. In fact, and I know we've discussed this before, but one of the first things I do is to make a point of asking the homeowner how they arrived at their asking price.Have you forged a few relationships with any local realtors or mortgage brokers? They'll have access to sales data, too.As for risk, none whatsoever if you do these deals as cooperative assignments, which is what I strongly recommend. Like you said, you don't want to be in front of 17 acres of neglected horse property.Bottom line: these properties are popular and profitable. If you can land some, you'll be sittin' in the saddle, (pardon my cowboy-from-new york persona). 1 Share this post Link to post Share on other sites
pilot76180 51 Report post Posted September 27, 2012 I've done some deals with 5 or so acres, and on the value, if the owner doesn't have an appraisal, or if the agent hadn't pulled data, I normally suggest getting an appraisal. It's hard to value land sometimes, if there aren't any comparables.As far as maintaing the property, you need to let the seller know just as you normally would that the buyers are buying the property and want to keep it maintained, but on land, I think it's important the potential TB and the seller are all on the same page as to what the seller will or won't allow on the property, and what the TB plans to do with it. Also, you'd want to find out if the seller is leasing any of the land out already. 1 Share this post Link to post Share on other sites
DeeLight 8 Report post Posted September 28, 2012 Michael and Steve, I am surprised by your replies because I thought we were mostly going after mainstream, cookie cutter type props. This thread has caused me to think Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 28, 2012 Dee, I learned early on not to prejudge a property. It may not suit you or me personally, but it will be to someone's liking. As long as the terms reflect current market conditions and you market the property effectively, you should find an interested t/b or two. Share this post Link to post Share on other sites