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west central Iowa | Those terms do put it in a whole different light. But still don't guarantee anything. A close neighbor with two sons and a hired man in the operation and a lot of cheap and inherited land lost everything in the 80s. He went to Arizona and started over driving a truck at 55. I don't mean to be doom and gloom, but I heard all the stuff in the 70s and 80s when people paid for greed the hard way. And I'm not saying all the problems were caused by greed either.
I'm sure the guy in my above example didn't pay $8500 knowing he would sell for $5250 in five years.
I know I'm spoiled by the land I bought in the 80s and 90s that would cash flow, but I can't see having a $540-720 interest charge on land when you can rent land for $300. And $9000 land with a $300 return isn't a very good investment. My son has money in a fund that trades commodities that is currently making 11%.
Another thing to think about in your scenario is the age and health of the potential seller. If they go to the nursing home, will they come back on you for buying under the market and paying low interest. Maybe there's enough money there you don't need to worry about it, but I'd want to be sure.
Edited to add, if you have enough for you and your family why not find a young person for the land owner to help. That young person could maybe even work for you the two years your son is gone to school.
Edited by 801486 3/31/2025 01:14
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"Sunset" years of life
