Opportunity bangs on the door whether you are ready or not

[Jon Klaus]

I have a lot going on right now. A LOT. I shouldn't take on any more. Several months ago, a 68 acre parcel contiguous with my ranch (homestead) went up for sale at $3500 per acre. I looked at the land and liked it. The agent who listed it knows that I am opportunistically trying to expand the ranch. I have 16 contiguous properties as neighbors and I try to keep an eye out on most of them.

$3500/acre didn't work for me, but I told the agent I'd pay $2000 per. She talked to the sellers (elderly sisters who live elsewhere) and said they'd go $2700. They absolutely will not finance. I said, I'll pass, but let me know if they get more motivated.

The agent called me 45 minutes ago and said they'll take $2000 per acre now. Ah, I want it, but have higher and better places for my cash, credit, and equity at the moment. This is a Doodad situation, because I wouldn't consider the land if it weren't contiguous. It's a good deal, but it would be about family lifestyle more than investment.

Where would I get the money? This is the best place: http://www.realtor.com/realestateandhomes-detail/3060-County-Road-2182_Greenville_TX_75402_M83400-17142 Another ranch I have for sale now. It's gotten about 25 lookers, but is unusual in that the house is huge for the area. Most of my asking price is equity. Should I drop the price to get it sold? I have been considering moving into it for 2 years and then selling for a tax free gain, then moving back to my current ranch.

If anyone didn't know I was a land junkie, you do now.

I could make on offer on the 68 acres contingent on the sale of the Greenville, TX ranch on 51 acres. How long of an option period should I ask for?

I could borrow 50-70% from a local bank to buy the land. I don't like that, because I'm trying to keep as much of my credit available as possible for Austin spec builds.

Plans for the 68 acres? Run cattle on it now, possibly divide and develop later. Or just keep it as the family homestead.

Ideas? Sanity checks?

[Nathan Emmert]

Jon, sounds like you need to jump on it...

Consider the opportunity cost of NOT buying the land... someone else snatches it up. When will you have another chance to buy it? It will likely be years if even in your lifetime. That lost chance, the cost of that lost opportunity, that likely far outweighs any cash return you can get investing the same funds elsewhere.

As to the doodad... life isn't about dollars and cents... life is a series of experiences, about memories, about enjoying a lifestyle you find enjoyable. If having that land will increase your enjoyment, will expand and fulfill your lifestyle, and will make your experiences more fulfilling and rewarding... hey, it's hard to put a price tag on that.

Need help finding your checkbook?