Profit from Recreational Property?

[meigsbucks]

I knew a guy who owned around 300 acres. He used to farm about 80 acres. When he got too old to farm, he leased that section to a neighboring farmer. The rest of the property was woods that had trails cut thru it. He’d rent access by the day to off road ATV and Jeep groups in the summer.

 

[45-70guy]

That’s good income for sure- what state/area are you in?

Seems a predictable option is find a property with a house on it, fence off the house and rent it out with only a small lot.


Does anyone know about developing land for housing? I have thought about buying a few hundred acres, then building houses to sell or rent on a small portion like 10-20 acres…. But then I know nothing about development or construction

New England; our economy is mostly driven by tourism but the obvious fact you need service people to live in these areas does benefit the ones who aquire land and or buildings etc… and especially with the short term rental boom the only issue is it has driven costs up dramatically to the point where local people working low paying service jobs s can’t afford to buy or barley rent, but that also raises prides for those who recreate due to rising rental costs.

My plan was to just own the land to control it and have the privacy but being surrounded by like minded people helps as to not have to manage all the land around me and pay those taxes and still have the best of both worlds

 

[45-70guy]

And check the depth in area for wells. That’s a heck of a expense in some areas

In our area wells start at $15k quotes but the he average finished price is over 20k. That’s for a 400’ well.

 

[MS 9x56]

I didn’t buy my land to profit from it or even to recoup what I spent. I bought it for a place to go and forget the rest of the world. To cleanse my mind and bring peace to my soul. I never feel so good as I do after cutting, splitting and stacking a cord of wood while sitting on a stump drinking a cold beer and admiring my handy work. I hope you find a way to accomplish what you seek.

 

[45-70guy]

I didn’t buy my land to profit from it or even to recoup what I spent. I bought it for a place to go and forget the rest of the world. To cleanse my mind and bring peace to my soul. I never feel so good as I do after cutting, splitting and stacking a cord of wood while sitting on a stump drinking a cold beer and admiring my handy work. I hope you find a way to accomplish what you seek.

When I first bought my dilapidated camp on some land in my 20’s I was already at the point of wanting to live off grid, since I had been working since I was in 6th grade and was then a master and self employed I wanted to work less for the money and more for my freedom like you said.
Nothing can compare to the way our bodies feel when our brain is detached from the world.

 

[3chunter]

Buy low and sell high. Save your cash for the downturn.
Most of the hunting farms available these days are crap compared to pre 2016 ish. The good farms people bought and held on to. You can search whatever site that sells land in the USA and compare the listings from 10 years ago and the available land for sale is junk comparatively.

 

[wildwilderness]

what's the fee on 10% to 15% return via what sounds like unsecured debt?

Not sure exactly, as I do get a family discount. I think with some of the investments they get a 1-2% direct cut from the borrower.

 

[45-70guy]

Buy low and sell high. Save your cash for the downturn.
Most of the hunting farms available these days are crap compared to pre 2016 ish. The good farms people bought and held on to. You can search whatever site that sells land in the USA and compare the listings from 10 years ago and the available land for sale is junk comparatively.

My bad habit has always been to never sell, and what I was buying was what no one wanted 15 years ago.
Now what I have everyone wants, be it old tractors, non-computerized trucks, old rifles, or sloping land on a mountain.

No one saw simplicity coming back that was from my generation. I wish I could buy more land but the prices have gone up beyond my means to justify at this point locally.

 

[Altitude sickness]

Unless you come across a unique one time deal. It’s a bad time to buy real estate. It’s due to correct again within the next couple year. Keep your powder dry and buy when everyone else thinks real estate is doomed, and it will never come back.

 

[Altitude sickness]

 

[45-70guy]

I buy based on what I want, which normally turns into what everyone will want or need.
Though I may be so low on the totem poll in a conversation like this as I’m just a peasant!

 

[wiyofa]

Is there any good way to make passive income off of a recreational hunting property?

I always have a desire to own property for hunting and fishing. I have in the past- it’s just really hard to justify the large capital investment and time to make it work. Financially it has to make sense…


Say you had $1M USD and want a place with some fishing (at least a pond) and at least deer every year- Is there any way to get even a 5% annual return ($50,000) on that money through the property ? I know the hope is the land appreciates over time but you can’t cash that out til you sell.

I have financial investors that can essentially guarantee 10-15% return on cash so putting that into Land is technically a “loss” that’s why I sold my last property…. Big swing in cash flow from monthly expenses to net profit! I now pay a hunting lease for less than half of what my operating expenses were on the property, and make way more off of interest!


I know the secret to everything is Buy low or inherit, but I'm sure there has to be a way to make a legit business out of a property that can at least pay for itself. Any novel ideas that you have done or know of? Resources like realestatefountainhills.com cover some angles but I know a grazing lease and a farm lease of tillable areas brings some money and really that's pennies on the dollar.

I’m looking for something that can make $50k/ year off of a $1M investment (give or take) with minimal time on my part (not opposed to hiring employees to work if it’s profitable)

2:38 AMClaude responded: Guided hunts, corporate retreats, and cabin rentals on Hipcamp are your best bets for real income.Guided hunts, corporate retreats, and cabin rentals on Hipcamp are your best bets for real income. Conservation easements for a tax play. Timber if you have it. But honestly your current setup is already the smart play. Lease for cheap, invest the rest at 10-15%. Land rarely beats that on pure returns.

 

[Certus]

I just wanna buy a nice timbered block with a creek to hunt a deer every few years and have a little nature preserve. 0 care given about generating an income or capital growth lol.

Actually need to start a thread on that for ideas this one has been an interesting read

 

[Xpraetor]

I cannot speak to anyone else's experience with "purchasing land." Nor can I speak to your version of "investment." In my logic I think there is a misunderstanding in land usage.

Case in point, "recreation land" does not generate income, aside from providing fauna - animals, and/or edible flora nuts/berries , etc .... for food, which offsets grocery bills. Recreation land is for recreation NOT income. Moreover, it affords savings via a low cost hunting venue and marginal increase of investment via appreciation.

The only way to generate income from land is by "working the land", and there are many ways to "skin that cat". One is Agriculture/Natural resources, urban development - which defeats the purpose of hunting, and lastly so called "green" usage i.e. solar, wind - which, again, defeats the purpose of hunting. [ as for the "carbon" scheme, in my logic, is just that a scheme i.e. not legitimate ]

If you own the land out right, Agriculture, with enough acreage, can produce an income of $50K per anum, the caveat being you work the land yourself. If not, then you have to lease the land to someone who will custom farm and pay you a percentage of the harvest profits. The *percentage, again depends on location & your level of investment in crop production. However $1M, would only purchase a max of around 200ac of prepped farmland in some areas, and less in others. To produce $50K/yr and not work the land yourself, you would need atleast $2.5M to purchase the lowest priced Agriculture land - at $5K/ac = 500ac , if custom farmed, the yearly crop production would need to generate at a minimum of $500/ac & your share is a 1/5. That is row crop production, using land for cattle production is all together different, as is fruit/vegetable production.

The other issue is large game prefer timber, brush, hedge-rows, of which are a thing of the past with modern commercial row crop farming practices. Moreover, wild game can be destructive to Agricultural crops.

Lastly, I see you are located in Alaska, there is successful Agriculture in your state. The bigger issue is Agricultural land in Alaska is valued on the low end at $25K/ac. The other is the lowest priced acreage (non-agricultural) is over $7K/ac, that equals out to 135ac max, which is a decent hunting property, but not necessarily enough to generate an $50K/yr income without being creative.

Creating a hunting destination for outside hunters has a potential to generate an income, in addition to giving you a place to hunt also. Unfortunately, I doubt it would produce the amount of profit/income you are seeking. It will provide savings in overall yearly hunting expenditures.

Of course all that I typed is speculative....