All Forum Posts by: David Arney

I saw that website too and I believe it is outdated, considering the offers we are already getting are twice that.

I feel pretty confident we can secure a 5 year $200/acre contract, but that's pulling just over 6% if the land is valued at $3k/acre. The problem with pulling a percentage of the value of the land is that it's not based on that value, it's based on how much corn you can grow, and what corn future prices are in the market. Right now corn prices are real high, and our farmland is in the top tier and known as some of the best in the country. I want to be able to strike while the iron's hot and get a great deal for my land. In a couple years, things may not be so great, so I want to maximize my profit.

I've seen a few threads on how to price out rent for residential properties, anybody know anything about estimating rent price on prime farmland?

Got about 2,000 acres in NW Missouri Top Prime Farmland currently pulling $100/acre through a 5 year contract set to expire at the end of the year. Land value has spiked recently, due to larger demand for corn. Land value is set to be re-appraised by the state this year, we are expecting the value to be well into the $3-4k/acre price range.

To do a simple math if I wanted 9% return I'd have to ask for >$300/acre to rent it out to local farmers. Got an offer last summer of $185/acre for 5 years, but values have gone up since then, so I'm thinking we can maybe ask for >$200/acre. We've thought about having an auction and taking highest bidder, didn't know if that was a better idea or not.

This farmland you expect Corn to yield 150-200 bushel/acre, and you are probably grossing $750-$800/acre.

well splitting up in 3rds you could ask $250/acre to rent, it'll cost $250/acre to plant seed/fertilizer and everything else, giving the renter projected $250/acre profit.

$250/acre on $3000 acre land is 8 1/3 % interest, didn't know if that number is considered good in this part of the country (NW MO). Land is paid for, there are no notes going to the bank. Property taxes aren't much, but since things are going to be re-appraised by the state this year, they are going to increase.

Any thoughts? Maybe the Kansas City Crews around here know a little bit about cash-renting farmland around here

I've thought about that, but have decided against it. I'm not going to be in school long enough to make it worth buying a home. If I had 5 years more here it would definitely be a good option.

Anyways, I found another place 2BD/2BA 1600sqft Townhome in the same area all appliances + W/D included and wood-fireplace only $950/mo. I've put money down on the place and will be signing a lease next week.

That's certainly true that they could be violating some sort of rules.

and your other concerns I understand. I personally would never concern any landlord, I am an extremely responsible tenant and the type of person you would want living on your property, but yea i get it.

doesn't matter anyways, i'm gonna keep looking

update

It's Tuesday and I haven't received a callback from the apartment complex. They said I would receive a call Sunday or Monday. I'm a little disappointed in that, considering I offered them a 13k check upfront and they are too busy or not professional enough to at least call me and say not interested. 2 days ago I would have handed over the cash no problem. Now I'm debating calling them and getting angry with the manager or just blowing it off altogether.

I found a townhome today, 1600+sqft 2BD/2BA for $950/mo. I'm gonna check it out and probably sign with them and forget the other deal. This rent is under what my max range is, so I could easily pay month to month. Do you think it's worth it to try and offer a similar 'bulk payment' deal for a discount anyways, or just keep the money to invest on my own?

I think farmland in NW Missouri has traditionally been about 4% normal inflation growth. Recently there have been some spikes in the up direction

not sure what you mean by minor compensation. Can you clarify?

another question

what if the deal goes through, I get the apartment, and then sometime during my lease the complex goes under or is sold out to another company, something like that. Is my deal in danger?

It's 2BD/2BA 1280 sqft apartment for $1050/mo in an very nice complex. It's probably one of the best locations in the Triangle too, you have very close access to pretty much anything. I love the area, so I will pay a bit higher in premium to live here.

The upgrades (as far as I can remember) are as follows

Granite Countertops
Stainless Steel Appliances (All GE energy efficient rated)
New Crown Molding
Hardwood Floors
Granite countertop drybar
'luxury' light fixtures (they call it that, its just a little nicer)
Nickel plated something something on all the cabinet doors and handles
Security Alarm

Maybe a few other things but that's about it, and they want $1295 for it. They made some pretty cool upgrades, but I think that a $250/mo increase is ridiculous.

I happen to be in a position at the moment to have the money to pay full rent upfront, and I offered them 12 months at the 1050 rate. I'd be prepared to go up to $1100, but after that I just don't think its' worth.

and before anybody asks, I will be having a roommate to pay his half, his name will be on the lease, and Ive known him for a while and will have him sign a seperate agreement with me becasue basically he'll just be paying me back for fronting the money.

Speaking of which, can anybody get me a link for such an agreement? Thanks

Has anyone ever struck a deal with their tenant over rent by accepting upfront payments at a reduced rate?

I'm looking to rent an apartment at this complex for myself, and they made some upgrades that I don't really want or need, and it caused the price to increase. I made them an offer today to pay them full 12 months rent upfront in return for the previous rate I wanted. I was curious if an offer like that would be taken seriously. What do you guys think?

I have a feeling it's not going to go through, but I think I could maybe try this again with a private landlord, maybe it's worth a shot?