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Sad Day....
- Thread starter T-Max
- Start date
Chuck from WI
Member
It sounds to me that you have your priorities right. I agree with Mennoniteman, keep moving forward and look for the hidden gems amongst the least popular stretches of property in the county. Talk to farmers, not realtors. Good advice.
KSQ2
Well-Known Member
We aren’t that much older than you, and we have purchased 80 acres debt free. You are doing it right, just try even harder to save. We live off half of our combined salary and save the other half; if you aren’t a two income home, it gets a little more difficult, but it’s doable. Don’t pay attention to the others driving new trucks and living in fancy homes, most of them are so far in debt they have to be either naively comfortable with it, or they buy a lot of antacid and don’t sleep very well. Hang in there, in the meantime you never know what can happen when you knock on 50 doors.
HB_Hunter
Well-Known Member
It does sound like you are doing everything right. I am cheap like my dad and have always been a saver. I’ve avoided debt like the plague since I was old enough to buy things.
I’m right at your age. I have been blessed in many ways, but have been able to buy hunting ground (halfers with my dad) and a place at the lake. Both are debt free. Save your money and be ready to act quick when a good deal comes your way.
I’m right at your age. I have been blessed in many ways, but have been able to buy hunting ground (halfers with my dad) and a place at the lake. Both are debt free. Save your money and be ready to act quick when a good deal comes your way.
Travis Aasen
Active Member
It's tough to save that much and not go into some sort of debt when purchasing any kind of property (at least in Wisconsin). Especially while raising a family and making sure the budget is balanced.
We started small and have upgraded several times...whether it be our hunting land or a lake cottages. That was the only way for my wife and I were able to swing it when we started our adventure 15 years ago. Honestly, Land and lake cottages climbed in value faster than we could save. So, we needed to get financially creative to get on the "board" -- NO KIDDING. We did a land contract for our first two properties (about 18 months apart) to buy our first piece of land and then a simple lake cottage in Northern WI. We offered 6% interest and 10% down - again 15 years ago, but I'd do it again if I needed to. Both sellers quickly accepted and we paid those SOB's off at a fast rate as well as poured sweat equity into them. (we also took every wind fall dime we could including tax returns and skipped vacations to make this happen.) That first piece of land was 13 acres bordering national forest. The land had 1 food plot, 1 crab apple, & nice little swamp. It was amazing what we did with that land! and you know what ..... it was all mine.
Don't always think about size - You could wait a lifetime to find the right 80-200 acres - Just get on the board with what you can afford.
Good Luck
We started small and have upgraded several times...whether it be our hunting land or a lake cottages. That was the only way for my wife and I were able to swing it when we started our adventure 15 years ago. Honestly, Land and lake cottages climbed in value faster than we could save. So, we needed to get financially creative to get on the "board" -- NO KIDDING. We did a land contract for our first two properties (about 18 months apart) to buy our first piece of land and then a simple lake cottage in Northern WI. We offered 6% interest and 10% down - again 15 years ago, but I'd do it again if I needed to. Both sellers quickly accepted and we paid those SOB's off at a fast rate as well as poured sweat equity into them. (we also took every wind fall dime we could including tax returns and skipped vacations to make this happen.) That first piece of land was 13 acres bordering national forest. The land had 1 food plot, 1 crab apple, & nice little swamp. It was amazing what we did with that land! and you know what ..... it was all mine.
Don't always think about size - You could wait a lifetime to find the right 80-200 acres - Just get on the board with what you can afford.
Good Luck
MarkDarvin
Well-Known Member
First thing I'd do if I saw $4,000+/ac land prices is draw a bigger circle on the map and keep looking. I drive 6 hours to get to my property. I drive right past all the $6000/ac and $3000/ac land to get to my $1300/ac land.
I got very creative when rounding up the cash to buy and build my place, because I too didn't want to take on a penny more in debt than I had to. Trouble is, that guy will nearly always lose when there is a greater fool willing to leverage himself to the max to beat you.
I sold my fancy pickup and paid straight cash dawg for a modest used vehicle. I got rid of the cable. I quit eating out. Pack my own lunch, dumped my high priced girlfriend, quit going on expensive fishing trips, quit gun buying, quit drinking (except while at the cabin), I sold a bunch of gear and stuff I wasn't using anymore, Took on some part time work, and I borrowed as much money from myself (401k loan and bank on yourself) as I could to pull it off.
Even then, once I had the dirt, it was a slow road to changing the habitat and building a camp outta spare cash from each paycheck. But if you want it bad enough, you'll figure it out. Knock down your monthly expenses, have a balance sheet garage sale, and figure out what funding sources you really have.
MarkDarvin
Well-Known Member
Statistically, unless they make way more money than you, they are in debt up to their eyeballs and don't have an ounce of equity to their name other than a forgotten 401k they were auto-enrolled into.
80% of this country is living paycheck to paycheck. The lucky ones don't get their paychecks interrupted in a down period. Keep your ear to the ground and every once in a while, you'll get stats from Fidelity on the percentage of americans that have a 401k or IRA, and they'll also tell you what percentage of them have to dip into them either via loan or early withdrawal to get by. The stats are alarming. If you've got $2,000 cash in the bank and no credit card debt, you're in the top 20%. Rona gave us a fresh glimpse into this.
MarkDarvin
Well-Known Member
Do the math on saving for a down payment with current home price inflation. I ran the numbers on a $200,000 house, and just to maintain the value of your down payment savings (to not slide backwards, further away from your goal), it'd take $500/mo. I'm sitting out the housing boom. There will be a day when the fed runs out of gimmicks to keep it going.
T-Max
Well-Known Member
Hindsight is 20/20, but I am really glad I made this post. As a young guy, I don't always know where I stand with regard to finances. I may feel like I am making the right moves, but these conversations don't usually take place. Seems like I am on the right track, and the future feels good. Thanks for the encouragement and kind words. I feel much much better. 
Listen to Mark’s word - he is wise. I opened a 401k for my employees and basically forced them all to contribute enough to take advantage of the full 6% company match. I gave them each a book on investing and saving for retirement. How many of them do you think read it?
T-Max
Well-Known Member
I have read quite a few books. "The Millionaire Next Door", "Millionaire Teacher", "Little Red Book of Common Sense Investing..." All good reads. I also had a finance professor in college that insisted that as soon as we started to make paychecks, we needed to pay ourselves (investments, etc...) before we decided how much money we had for everything else. I really took that to heart since I was the oldest in the classroom by several years, and therefore already behind schedule...
KSQ2
Well-Known Member
I'd be willing to bet you could find Dave Ramsey on one of your AM radio stations. I listen to him when I'm cooking supper, or cleaning the kitchen. His common sense advice will encourage you to keep making the right decisions. Also, his frank words for callers with mountains of debt will make you feel better about your financial position, believe me!! And some of those people are making upwards of 6 figures!
George
Well-Known Member
Lots of good advice given. I've made a living on passed over dumped on properties. Just cleaning a place up increases your equity. I went from 20 acres in grass lake mi, to 80 in Iowa, to 164 in ky. I also paid off debt, bought new trucks and rangers each step along the way. I always bought for deer hunting not the fancy living homes. I live high off the hog on next to nothing. When people ask if I'm retired I have to tell them no, I'm still looking for my first job out of college. I did work and save as a young man to get the ball rolling but it is about building equity.
G
G
DrDirtNap
Active Member
Sure hate to hear the news but as others have pointed out, You are young and have the time and energy and sounds the determination to get your own place. When I was your age the possibility of me owning my own place was only a glimmer of hope. At age 45 it became reality. You can do it.
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Sent from my iPhone using Tapatalk
MarkDarvin
Well-Known Member
If we're doing it right, we should have less than our indebted neighbors in the short run. We're living on 75% of our salary, they are living on 125% or more of theirs. There comes a day when you'll be paying cash for things they can't get approved to finance.
Cedar Ridge
Active Member
Mark,
I think you and I would get along great. Some really good stuff that you’ve shared here.
MarkDarvin
Well-Known Member
We just closed the casket on a guy in his 30's yesterday. He was a highly educated professional up to his eyeballs in student loan debt. The poor guy was working around the clock trying to get his own practice up and running. He was also very good at what he did. However, he didn't wake up one morning last week.
I've seen that play out enough on people in their 40s and 50s to know I don't want to plan to start doing what I want at 50 or 60 in case I don't even make it there. The unfortunate reality is that the American Dream is expensive and getting more expensive. It ain't worth dying over. So find out what your version of that dream is, go for it, and throw the rest overboard.
My dream is pretty simple. I am working for the day I can wake up and answer to no banker, no boss, and no ailments. That's what guides me every day. All I want is a piece of land and freedom.
Drycreek
Well-Known Member
Truer words were never spoken ! I’ve worked in the oilfield all my life and there are two things you can bank on. One: if it’s up, it will go down. Two: if it’s down, it will go up. Some guys never learned that simple fact and they spent their money as they made it, then when times were bad they were broke. I was always like a plow mule wearing a blind bridle, I just kept plowing toward the end of the row. I had to wait until my first kids were nearly grown, get rid of my first wife (liability), and marry a North Dakota farm girl before I could get ahead. Together we made it happen, but it still took a few years. That’s small consolation to a young guy who’s apt to be impatient, but Rome wasn’t built in a day ! Good luck in your quest, if you want it badly enough you’ll make it happen.
weekender21
Well-Known Member
So true. It’s sad to see debt so acceptable in today’s culture.
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Stay single Mark and you can make it happen, LOL. Women drive or influence 80% of consumer spending in the US. Hard to believe considering all the toys us guys have.
