I missed the boat on some this summer.

This is a crazy time for real estate. In my area I know of large tracks 100+ acres that sold for 12-15,000 ac 10 years ago that ended but being taken back by banks and resold for 2-3,000.
The value is coming back but it will be a long time till it back where it was.
In the end property is only worth what some one will pay.
And today it take cash or owner financing ... The banks will just look at you funny.

Thee are some banks out there that will loan 60% of the appraised value and go 15 years. It used to be 80%, a few years back. The more acres, the cheaper it is per acre, yes, location has everything to do with it.

And me the coordinates. I'm interested.

And this is why lenders like Alabama Farm Credit and First South Farm Credit are thriving.

When i first bought my land, i went thru First South Farm credit. I decided i wanted to cut some tree's, i called my lending agent to run it by him, and he said thats fine, but whatever money you get from the sale of the tree's, has to go towards the principal. What? Yea. I sold that parcel and used Farmers and Merchants Bank, here in Calhoun county when i bought another parcel. They let me cut, MY TREE'S, and put the money in my pocket. Other issues with them as well, i'll never use them again. Metro Bank also lends money for land.

Busy now. Check later today and I will send a PM

I used Alabama Farm Credit and they don't have that type of policy or at least not in my agreement.

Land cost varies as much as the March temperature here in Chambers. I was appraising and I swear there was no correlation between the type of property, location, terrain, or road frontage for rural property when comparing one sale to the other. In other words, the standard sale of land was based pretty much on supply and demand, period. Of course, harvestable timber played a large role in price.

It all depends on values.

Say you bought 100 acres where the dirt was worth $1000 and the trees worth $2000 per acre so you paid $300,000 for it and the bank loaned you $200,000 of that. You could clearcut that land, put $200,000 in your pocket and leave the bank with a $200,000 loan on land that is now worth $100,000.

Then bank would be foolish to do that.

The bank told me the tree's were mine. First South told me the tree's were part of the loan. Checked with both on the second property. The second property cornered the first property. This is hilly mountain land. Farm entities are more geared toward farms, than raw land. They'll loan a guy $1,000,000 for chickens and houses. The chickens can all die and the houses can burn down. Raw land, pretty much stays the same.

Very good point. If I financed undeveloped land (which means I own a share of it at that time), I'd want to be in control of selling timber, minerals, or any other asset on or below the property. Otherwise, I'd let the landowner come up with capital to buy it if he wants to 'own' it all. Until then, I'd consider it partial ownership based on the equity the owner has.

Chicken farmer will be insured, there will be some other serious collateral somewhere or something . I agree with coffee, bank is really setting themselves up to foreclose on a pile of rocks and tree tops. I'm surprised they would let folks do that that didn't have assets, cash , land, etc. to cover it somewhere else.

Clarification, not saying your land after logging is a pile of rocks and tops.

I'm in tennessee, but I just have closed on 85 acres that sits right square in the middle of my dad's 200 acres, mine has road frontage as well.

I gave $57,600.

Damn, rockhound, i thought i got a deal on 40 acres that bordered me, when it went into foreclosure. I got it for $55,000, but you got the deal of the century.

Yea I got it right, my dad bought 38 on the backside of the property for 30,000

One of the biggest reasons is we leased the land from the guy for 20 years for $100 a year lol he has money he has never seen, he liked us and he done us right.

I looked at 160 acres of 3 year old clearcut this summer for $2250 per acre.(St.Clair county) Flat land, 300 feet of county road frontage, probably wouldn't none of it perk. I thought it was high. I offered 300k for it and it didn't buy it. In the spring, me and good hunting buddy offered 350k for 237 acres that was priced @ 419k in St.Clair county. Flat land 1000 feet of us hwy 11 frontage. Probably none of it would perk either. And back 200 acres was cut off by railroad, which meant we would have had to rail crossing in. Needles to say our offer didn't get it bought. Land around Gadsden isn't cheap and frankly it's too populated for the most part to have good continuous hunting. Seems like you need to travel an hour minimum for decent priced land. That's fine but it would be nice to have somewhere local to run hunt in the evening. Or be able to go enjoy a mornings hunt and it not be over an hour away. Little pockets of good tracks exist, but like I say it's usually going to cost you 2500 and up per acre for a 40 acre tract.