Land Investor || Where, When, and How to start.

[Chabu Nsokoshi]

Hello Everybody, 

Thanks for taking time to read my post. I have much to say and even more questions to ask. I'm curious about rural farmland investing. I've done research on the topic, but I still come shot of fully understanding the picture. That said, I'm no expert on the topic, but would love to be one. So far what I know, states that there a few really "big" companies that operate in this niche. I'm talking about companies like Farmland Partners and Gladstone Land (just to mention the two most popular ones). These companies are said to be farmer and investor operated. A somewhat clear distinction of how they operate is listed on their websites; some investors purchase the property and lease it to tenant farmers on triple-net leases, or some will purchase the property and hire a quality farmer to farm the grounds and split the profits 50-50. 

I'd like to know how most of these investors raise capital to purchase these properties, while also leaving room in deal for structuring a triple net lease or a new hire?  I'm trying not to get lost here with my own question, so specifically I'd like to know if someone on here has structured one of these deals before and would be willing to talk about it.

I'm also curious about "smaller-scale" companies doing this type of investing. To clarify, I'm not sure what I even mean by saying smaller-scale companies, I'm thinking any other company or single investor doing the same thing, but maybe not publicly traded. If anyone knows of anything like described, I'd appreciate a link or even a conversation. 

And if you're like me, with only an interest in this topic, please still leave a comment, I'd be happy to connect and see if I can help you find answers as well. 

[Chabu Nsokoshi]

@Marcus Brown funny you mentioned that story about your friend, because that's how my curiosity in land investing started. My friend is a farmer and pays rent for 300+ acres of land; I think, the owner must be very clever. 

There's so many options for land owners, dairy farms, poultry farms, chicken farms, orchards and vineyards. The idea is that if the economy falls apart, people will always need food. And farmland is just like other properties, you can buy it on a discount and flip it. I'm not too sure about the tax benefits, but i'd assume there great, because you're feeding people. 

Farmland is valued similar to any other business property, mostly off cash-flow in quarters. The land itself is valued by the area, if it is begging to expand or develop. Plus there's specific appraisals/agents that work this niche accurately to tell you the limits on how the land, whether its farmable or best be developed.

@Joshua Dorkin @Brandon Turner @Mindy Jensen @Scott Trench biggerpockets should have a separate Land forum, where we can talk crazy about farms and dirt land.