Profit from Recreational Property?

[wildwilderness]

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? I know a grazing lease and a farm lease of tillable areas brings some money but 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)

 

[NoStepOnSnek]

So you probably won’t make back $50,000, but you can get passive income by leasing out a piece of the property for hay. Or you can do some CRP or other government programs that won’t make you money but will erase taxes

 

[375Fox]

Probably not. The value is in the land itself. It’s not paying a return until you decide to sell. I’d look at it more as a safe alternate bank account. It’s not going to go down in value. You can sell timber every ten years or so with a selective cut. You can rent out some ground to the farmer. If you’re lucky you’ll get a lease payment or royalty payment for mineral rights. Look for a state with low property taxes and enjoy having the land. If you don’t get any enjoyment out of having land give the money to your financial advisor.

 

[Scott CWO]

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? I know a grazing lease and a farm lease of tillable areas brings some money but 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)

Obviously depends on the property and location. We bought 1100 acres of pasture and 190 acres of irrigated crop fields in an area I hunt mule deer several years ago because I didn’t want one of the other neighbors to buy it and close it off to our hunting. I worked out a deal with another neighbor to lease the pastures for grazing and the irrigated fields for corn and alfalfa. I gave him a break on the leasing price in exchange for hunting rights on his owned 5000+ acres. Last year, we sold our land to him for a decent profit but retained the hunting rights through a 20 year easement. Everyone is happy because he doesn’t hunt. I will use this model again!

 

[wesheltonj]

50k, not likely unless your capturing minerals. Unfortunately, production decreases over time, not to mention property taxes on production, federal tax on production, costs of production, income tax and you only get a 15% depletion allowance.

 

[farmer_john]

You could geberate returns on timber. Every 15 to 40 years depending on species.

But your not going tk capture gains like 15-20per year

 

[JES Adventures]

I don't know of any passive means to generate a 5% return on rural land but would like to know more about the guaranteed 15% return that your financial investors are offering.

 

[Hooknbullet2]

I couldn’t have said it better.

I don't know of any passive means to generate a 5% return on rural land but would like to know more about the guaranteed 15% return that your financial investors are offering.

I’d like to find a financial planner that can get 9%.

 

[deewayne2003]

Your only going to make $50K per year on recreational land if it's close to an urban center and you have an expensive to build and maintain air BnB or other such attraction.

 

[farmer_john]

I couldn’t have said it better.



I’d like to find a financial planner that can get 9%.

Honestly its not hard to get 10-15% in the market if you do a little research. Ive been getting about 11 over last 20 years. And im not even a finance bro just a dangerous amature.

 

[wildwilderness]

I don't know of any passive means to generate a 5% return on rural land but would like to know more about the guaranteed 15% return that your financial investors are offering.

I can refer you to my financial advisor if interested, as a disclosure he is my bro-in-law

His firm - Rovin Capital has a number of options for investing that include “venture-debt” type options. Companies need capital to grow but can’t get loans from traditional banks are are paying 15%+ on the money with guarantee monthly interest payments and a full return at maturity of initial investment. The company is collateral, and they rather borrow than give up equity like you would going a Venture-Capital route. His Capital firm has to find those opportunities and structure the deals. The latest deal they needed to raise $30M over 2 tranches. The deals are usually 12-24 months

There are other options with real estate etc that guarantee 10% with the properties as collateral. They always need cash to buy and sell so it’s a steady rate of return with a 4-12 month commitment.

Of course they run all the normal stock market etc options as well, and design a diversified portfolio and risk management profile based on age, retirement goals, personal financial situation and tolerance.

(You could just buy Bitcoin if you can stomach the volatility and HODL til you made enough )

 

[Rare Breed]

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? I know a grazing lease and a farm lease of tillable areas brings some money but 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)

Love your vision and ask!!! Although I am not in your price range I was in the $400,000 range which I did. My thought was Working with the general public for a hunting venture would be a pain in the ass. Second I thought about raising corn on a part of the land for ethanol. Third I thought of other farming things I could sell. At the end of the day I found I could not even service the debt much less make a return. I finally just bought the land for myself, enjoyed it with my family then sold when they were grown for a nice profit with my own money no investors. Just me

 

[WAB]

I bought the land and built my home on it. I hate cities anyway. I live on a great hunting property with roughly the investment I had in a high end development in the city with a bunch of covenant nazis making my life hell. I’m never going back!

 

[Andrew62]

I was older in life when I was able to justify buying some hunting land because there just is not a viable way to lease land for crops or timber that will justify purchasing land. The only avenue I can think of is leasing property for solar farms, gas leases or windmills.

 

[mdwest]

I bought the land and built my home on it. I hate cities anyway. I live on a great hunting property with roughly the investment I had in a high end development in the city with a bunch of covenant nazis making my life hell. I’m never going back!

Exactly what I’m looking to do in the very near future…

Turn suburban equity into rural acreage, build, and retire at least a mile from the next human being…

 

[RedTag]

Carbon offset credits for a 1,000-acre property with an average sequestration rate could potentially earn tens of thousands of dollars annually.