NW Call to Action
How to Add Acres in 2024
Goals drive me.
In 2022 I made it a personal goal to add a property to my balance sheet. Interest rates were still historically low at the time, and I was hoping to find a deal in a closing window. I already had 1 farm in my name, purchased in 2020, and was ready to grow again.
This time I was looking for an investment that would provide more cash flow and the decision was made to switch asset classes to multifamily commercial properties.
I spent a bulk of 2022 researching pricing trends in the state, acquiring lists of apartment owners in targeted cities, and running dozens of scenarios to find a price point I was comfortable with. By the second half of the year, I felt good running a quick analysis on a listed property and knowing what purchase price I could offer to generate the desired cash flow. In October of that year, I reached out to 36 property owners in my targeted area and got a bite to privately negotiate on an 8-plex.
The deal fell through in December and crushed me a little, then the calendar turned and another opportunity came about.
Within 6 weeks I had a 112 acre property under contract and was prepared to complete my first 1031 exchange. I had been aware of the 112a property for sale in December. It wasn’t until I got past the defeat of a previous failure (and missed goal) that I was willing to explore the options to make this happen.
Even though the goal wasn’t achieved in the designated year, my action made me ready and confident enough to pull the trigger on something bigger than I had planned.
In 2023 my goal was to add rental acres to the farming operation.
This past year I reached out to some landlords, but my heart wasn’t in it. I was exhausted from the 1031 exchange, raising kids, and other things life throws at you; I was distracted. Most importantly, I didn’t have a plan I could execute on to create focused intention.
If you want to grow your farming operation, have an intentional plan you can act on to make it happen.
Have a Merry Christmas!
Grant
All views expressed on this site are my own and do not represent the opinions of any entity whatsoever with which I have been, am now, or will be affiliated. Information provided is authentic to the best of my knowledge, and as such, is prone to errors and the absence of key details. The content of this blog is for entertainment and informative purposes and should not be seen as professional advice to finances or any other field.