Purchasing land for a BOL, recreation, and hunting

[kckndrgn]

Anyone here have any experience with purchasing land only? Prices for land are coming down, to the point where we can afford it, and I'm needing any tips or info on going about with the process.

I've had a few co-workers tell me to get an agriculture loan, since it's cheaper. The only catch is you need to show income from the land to the USDA annually, according to one person who has done this before.

I've found a few parcels of land between 10 and 20 acres (and a couple more than that) that are, or appear to be, within the budget.

Primary use for now would be recreation and hunting, with an eye to building a home/cabin in a few years.

thanks for any information.

[Guest Papabear]

When I bought some extra property in Alabama I used First South Farm Credit out of Madison AL. You can see if they loan in Tennessee. They pretty much specalize in rural farm/land loans. Even if you just call and get information its a good place to start.

[Raoul]

I did some work for Farm Credit Services a few years back. IIRC the property was acreage with a house that had little value.

Local Office Pages | FCS

[kckndrgn]

Thanks for the info so far. I've been in contact with FCS and i'm starting to gather information for them to "pre-qual".

[peejman]

Read me: http://www.tngunowners.com/forums/general-off-topic/60461-considering-buying-land-shoot-camp.html

[kckndrgn]

Got another quick question, would you consider land than had no road frontage? Meaning, it is land locked. Does TN allow for easements to make a drive from the road to your land?

TIA

[peejman]

Yes, the law states that you cannot deny anyone access to their property. However, sorting out who owns what, where easements lie, and who controls them can be sticky.

[Tempest455]

Got another quick question, would you consider land than had no road frontage? Meaning, it is land locked. Does TN allow for easements to make a drive from the road to your land?

TIA

Mine does. It's clearly stated on the survey.

[Lumber_Jack]

Yes, the law states that you cannot deny anyone access to their property. However, sorting out who owns what, where easements lie, and who controls them can be sticky.

And expensive because it's your job to prove you're locked. And even if a judge agrees someone has to grant you an easement, you still have to pay that landowner for the ROW.

I would not buy any land that does not gave either a road, or clear deeded access or easement of at least 15'. Some easements exist but are not wide enough for a suitable driveway.

Know there is a difference between "road frontage" an having a driveway. Property that had true road frontage will butt up against a county, city, or state road. This land will definitely demand a higher price.

I would suggest talking to a real estate agent that deals specifically in Rural woodland. Not just Century 21 or whoever but a true rural real estate company. Remember I they have a listing the owner pays the agent not you, so it never hurts to call.

[Lumber_Jack]

Full disclosure, I am a forester and my company also deals in rural real-estate . However we don't have any brokers that represent your end of the state. I could probably help you track down a few if you need help though.

[UncleJak]

I have been looking into land purchase as well. I think now I am going to build a house on it too. My real estate agent was telling me that even logging the land or raising hay can qualify for the "green belt" stuff. Not sure how accurate that is, but it sounded good.

[Lumber_Jack]

I have been looking into land purchase as well. I think now I am going to build a house on it too. My real estate agent was telling me that even logging the land or raising hay can qualify for the "green belt" stuff. Not sure how accurate that is, but it sounded good.

Not accurate at all. Greenbelt is a property tax program offered by the state for property you deem as forest/agriculture. You don't actually have to cut one tree, or hay, or even grow crops.

All you have to do is get a forester to do a "10 year management plan" that states the status of the property and what best plans for management. There is a special format the state requires You are not obligated under Greenbelt to follow the plan, just file it at courthouse.

The cost of the plan (we charge $300) will probably offset the tax savings in the first year but after that you will save a considerable amount on property tax. Tennesee Division of Forestry used to do these plans but I'm not sure if they still do.

[Armed Aviator]

Not accurate at all. Greenbelt is a property tax program offered by the state for property you deem as forest/agriculture. You don't actually have to cut one tree, or hay, or even grow crops.

All you have to do is get a forester to do a "10 year management plan" that states the status of the property and what best plans for management. There is a special format the state requires You are not obligated under Greenbelt to follow the plan, just file it at courthouse.

The cost of the plan (we charge $300) will probably offset the tax savings in the first year but after that you will save a considerable amount on property tax. Tennesee Division of Forestry used to do these plans but I'm not sure if they still do.

How big must the land be to qualify for the green belt program?

AA

[peejman]

How big must the land be to qualify for the green belt program?

AA

15 acres. I believe 0.5 acre is ineligible if a dwelling is on the property.

My parents have 12.5 acres and have been trying for years to buy a small piece of neighboring property to push theirs up to 15.5 so they'd qualify.

Hamilton County Assessor of Property - Agriculture, Forest and Open Space Act

http://www.tn.gov/attorneygeneral/op/2009/op/op09-171.pdf

http://www.tn.gov/attorneygeneral/op/2010/op/op10-71.pdf

[Lumber_Jack]

15 acres for Agricultural classification which does require a minimum income of $1500 per year

15 acres for Forest land, no income required. Just a management plan

3 acres openspace: maintained as openspace and included in a preservation plan approved by state or local planning agency.

So if you have a mixture of forest and open space you can qualify without showing any income. If you have crops you have to show $1500 a year.

[UncleJak]

Thanks! This has been most helpful. I haven't decided for sure if I am gonna get the property I origionally found, but whatever I get will have at least 50 acres.

[Lumber_Jack]

Thanks! This has been most helpful. I haven't decided for sure if I am gonna get the property I origionally found, but whatever I get will have at least 50 acres.

Great, if you do get it, send me a PM and I can give you some advise on Greenbelt. (for free).

[Hershmeister]

+1 on farm credit services

The best way to finance - low rates and easy simple low cost refi programs

[gregintenn]

I went to an auction and kept raising my hand until everyone else quit. The nice lady in the auction trailer walked me through the rest of the process.

[kckndrgn]

WOW, some great info here. Thanks all!!

Lumber_Jack I'm going to PM you for more info. We are looking at 20 acres or so.