|
|
PROPERTY INFORMATION
Agriculture Farmland Investment Partner Wanted - Southern Minnesota
|
|
Property Information:
Wanted: Long-term investors partners who seeks ownership of farmland real estate. Partners typically will purchase property near our farm operation and then lease the property to us either on a cash lease or shared profit arrangement. The shared profit arrangement offers greater potential returns.
An investment in agricultural farmland offers an opportunity to participate in record world demand for food & feed grains and oil seed crops and an unprecedented opportunity as record prices are currently being offered for multiple years into the future. Current tight world and US grain stocks are leading to an unprecedented opportunity for
profits in agriculture production.
We identify superior farms and facilitate the purchase of the property for our partners. Average size parcels are 160 acres and we expect would require a total capital investment of $720,000 however, parcel sizes can range from 40 acres to several hundred acres. The the capital required will vary by parcel size and final purchase price. An estimated range of capital needed would be from $180,000 and up. Since prime agricultural farmland has superior collateral value an investor need does not necessarily need to make a 100% cash contribution to facilitate completion of a purchase.
Several properties are coming available during the next few months. The expected cash return would be 3.5 to 4.0% per year plus land equity appreciation. For example, a cash lease $150 per acre provide a 3.57% return on a
property with a cost of $4,200 per acre. The shared profit arrangement offers greater potential returns, particularly in a strong commodity market. We can provide additional details regarding shared profit arrangements. Properties will have drainage tile that would provide for taxable depreciation expense as well. Real estate taxes vary depending on
properties and would be expected to range from $22 to $25 per acre.
Prime farmland real estate ownership investment is safe, provides ongoing rental income with no management or tenant headaches, and provides the opportunity of substantial appreciation in valuation.
|
|
