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UTPhil2006

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If one were to buy land in excess of 5 acres and there was no agricultural exemption on it, how hard or easy is it to get it put on the property? Assume cattle grazing leases are the mechanism. If that doesn’t work, what would that’s not too difficult?

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28 minutes ago, Dbeasy said:

If one were to buy land in excess of 5 acres and there was no agricultural exemption on it, how hard or easy is it to get it put on the property? Assume cattle grazing leases are the mechanism. If that doesn’t work, what would that’s not too difficult?

Just be aware for the cattle ag exemption, although reviewed on a case by case basis, the general rule of thumb is more than 10 acres.  It would also be fairly difficult to find someone to run cattle on 10 acres, much less 5.  Not much bang for the buck.

That said, there is one case that you can easily get the ag exemption on smaller acreage tracts and that is if the purchased land is attached to land that is currently under hay production or cattle grazing and the land is easily accessible (usually meaning no fence or at least a gate) for the use to continue.  

 

 

 

Edited by Catpfish
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41 minutes ago, Neonmoon said:

This past week has been a kick in the taint

Note: Down is bad

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Yeah man, it ain't great.  Ain't great at all.  I assume the fed meeting notes will make it worse.  And the next unemployment report and next inflation report.  It will swing I think at some point in time, but it's awful stubborn right now.  Bad juju feeds on itself. 

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1 hour ago, Dbeasy said:

If one were to buy land in excess of 5 acres and there was no agricultural exemption on it, how hard or easy is it to get it put on the property? Assume cattle grazing leases are the mechanism. If that doesn’t work, what would that’s not too difficult?

Note that if the property currently doesn’t have an Ag exemption, you have to have it run with an agricultural purpose for 5 out of 7 years before you get the tax exemption.

But once you have an Ag exemption, you can then convert it to a wildlife exemption, which is a bit less work. 

Edited by smokebomb
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57 minutes ago, Wulaw Horn said:

Yeah man, it ain't great.  Ain't great at all.  I assume the fed meeting notes will make it worse.  And the next unemployment report and next inflation report.  It will swing I think at some point in time, but it's awful stubborn right now.  Bad juju feeds on itself. 

It did get worse.

AND Bank just stole loan from me. Offering 6.625% on a FHA with 686 credit and 0.5 points. That's absurd. 

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5 minutes ago, LCHorn said:

I'm weirdly not seeing investor repricing, maybe it's still coming..

Give it about 10 minutes. It just moved strongly about 15 minutes ago I'd say. Support broke. Wheeeeeeeeeeeeeeeeeeeeeee  all the way down. UWM had repriced already when we got to -12 on the day so they might not reprice, but I'd think the rest would be getting ready to.  Who knows. 

13 minutes ago, Neonmoon said:

It did get worse.

AND Bank just stole loan from me. Offering 6.625% on a FHA with 686 credit and 0.5 points. That's absurd. 

How big was the loan?

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2 minutes ago, Wulaw Horn said:

Give it about 10 minutes. It just moved strongly about 15 minutes ago I'd say. Support broke. Wheeeeeeeeeeeeeeeeeeeeeee  all the way down. UWM had repriced already when we got to -12 on the day so they might not reprice, but I'd think the rest would be getting ready to.  Who knows. 

How big was the loan?

Not big enough for that shit. $300K

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18 minutes ago, Neonmoon said:

It did get worse.

AND Bank just stole loan from me. Offering 6.625% on a FHA with 686 credit and 0.5 points. That's absurd. 

Is there anything weird about it?  I'm at 97.375 on a FHA $300K purchase; I can deviate down to 97.625 before I'd need to charge a discount point and I've been getting my shit pushed in regularly on pricing. 

 

Quick edit--I'm at 97.375% at 6.625%

Edited by LCHorn
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3 minutes ago, Neonmoon said:

Nothing weird about it other than I couldn't get close to matching. I can go down to 98% and basically make nothing, but I ain't getting down to 97.375%

Oh great, the 10 year is above 4.25. 

The bank isn't totally off the reservation, we could make that deal happen on those terms and make enough money on the thing that we'd be happy and not resentful to have the loan in.  Sorry it happened to you though, that always sucks.  They were smart on their pricing- that 0.5 in discount points got them almost 4/10's of a point in a rate I think. I'm normally very sceptical of anyone paying discount points in a high rate environment but the payback on this is like less than 18 months.  I still probably wouldn't do it if I was the buyer but that's a pretty big pyscological thing.  

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1 hour ago, smokebomb said:

Note that if the property currently doesn’t have an Ag exemption, you have to have it run with an agricultural purpose for 5 out of 7 years before you get the tax exemption.

But once you have an Ag exemption, you can then convert it to a wildlife exemption, which is a bit less work. 

That’s what I was trying to remember. 

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22 minutes ago, Wulaw Horn said:

The bank isn't totally off the reservation, we could make that deal happen on those terms and make enough money on the thing that we'd be happy and not resentful to have the loan in.  Sorry it happened to you though, that always sucks.  They were smart on their pricing- that 0.5 in discount points got them almost 4/10's of a point in a rate I think. I'm normally very sceptical of anyone paying discount points in a high rate environment but the payback on this is like less than 18 months.  I still probably wouldn't do it if I was the buyer but that's a pretty big pyscological thing.  

Am going to try and switch it to another investor and save it (company hates doing that, so might decline me)

 

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If one were to buy land in excess of 5 acres and there was no agricultural exemption on it, how hard or easy is it to get it put on the property? Assume cattle grazing leases are the mechanism. If that doesn’t work, what would that’s not too difficult?
Depends on the state and their acreage requirements but I've had ag exemption running cattle. Also have a property that was timber exempt before we purchased it as well.

We looked at continuing it but it was almost as much as the property taxes. Your required to have a harvest and growth plan along with fertilizer and culling plan and then that gets inspected etc. It was too much for us considering we live outside the state of TX.
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5 minutes ago, UTPhil2006 said:

Now at 4.30 

Fuuuuuuck

Good news is clients appreciated my service and they chose me even with a higher rate. (I got them Pre-Approved at 11pm at night and other lender was not responsive) I did raise hell to my company this morning and got them to concede enough to get pretty close to other offer. 

 

Edited by Neonmoon
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5 minutes ago, Neonmoon said:

Fuuuuuuck

Good news is clients appreciated my service and they chose me even with a higher rate. (I got them Pre-Approved at 11pm at night and other lender was not responsive) I did raise hell to my company this morning and got them to concede enough to get pretty close to other offer. 

 

Solid save. Yeah customer service and accessibility are at the utmost importance right now (and in general)

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On 8/16/2023 at 11:24 AM, Fudge Nuggets said:

Honey bees. There’s an entire cottage industry devoted to the scam. 

 

On 8/16/2023 at 11:31 AM, Neonmoon said:

This is correct. I know of a few rural AirBnB owners that are now honey bees operators as well. 

 

Not sure why this is a scam, unless you're just referring to the "leasing and management" part.  Honey bees are a fuck ton more important than cattle.

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Oh fuck y'all.  I've been chasing a nice listing for several weeks.  A friend of the GF.  She's gonna sell a super-nice condo, downsize a bit, get away from HOA fees, and bank her 250,000 exemption.   I got the listing today, just as the summer sales season is winding down and the kids are starting school.  Oh well, not much inventory, her unit is super nice, and I can sell it anyway, and probably get a record price for the complex.  

Meanwhile, I've been looking at replacement units for her.  There's an over-55 complex that she likes, so I've been showing her houses in there for a month or so.   

I usually take Mondays off for yardwork, personal errands, home maintenance, etc.  Two Mondays ago, I'm heading to Home Depot, wearing a paint-stained Strickland Propane T Shirt, dirty shorts, and flip flops.  I get an alert that there's a new listing in the over 55.  I'm heading in that direction, so I decide to go preview it.  I pull up, and a woman is peeking through the windows.  She sees me and says "are you the owner".  Nah, I explain that I'm a sloppy realtor on his day off, apologize for my appearance, and tell her I was heading to Home Depot for mulch.   I open the lockbox and invite her in.  

We look at the home together, she asks me about other neighborhood listings, and says "you're very knowledgeable...may I have your card".. Sure.

Fast forward a week.  My family suffers a horrible loss; a tragic death of a younger guy that's near and dear to me and nearer and dearer to the GF.  It's a kick in the nuts.  It's bad.

I get a call from the window-peeker.  She wants to see another listing.  I tell her that I'm living in upside-down land, and  tell her the only time I can show her is at 7 AM.  She says "fine".  We do the showing, she asks me to write at 20k over asking, all cash, and sends bank statements.   The seller is a local monastery.  The homeowner died Elvis-style, on the shitter, and wasn't found for several days.  I've got a copy of the bio-hazard cleanup invoice...15,000. 

His family donated the home to the monastery.   

Listing agent puts on the MLS all the shitter death info, and says all offers will be reviewed after day 7 of the listing.  I call the dude, and he's straight-up old-school.  Says "I will not represent any buyers on this deal".  "I'll play it fair and square", and something in his voice makes me believe him 

So, we get an offer together, I send it over, and the agent responds that I'm offer #9.  

Shit.  I confer with windowpeeker, and we agree to keep looking.  This morning I show her another listing that she likes, but not as much as Elvis-shitterdeath unit.  We do the showing, crunch some numbers, and, this unit is tenant-occupied by an elderly couple, which complicates matters.  We discuss several scenarios, but she tells me that she still prefers the Elvis unit if she can get it.

I explain to her that I cannot write on the second deal with the offer out on the first because it's unethical.  I tell her I'll call the agent on the Elvis Shitter house and see which way the wind is blowing.  I call the guy...Mr. Old School, and say hey, are we in the game here, because if not I'm sending you a withdrawal of offer notice so my client can move on.  He says yeah, your offer is very strong and you're very much in the game and very well might win.

I call windowpeeker and she says fuck it, I'll buy both, and sends me Proof of Funds that she can buy both. 

Oh boy.  Today I listed $895,000 and have cash offers out totaling over a million.  It's the worst week I can imagine personally, and as good as it gets professionally.

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