Given the widespread popularity of our seminar series we are looking at ways to expand it, so that more people can attend. Here are some ways you can attend one of our seminars:
1) Currently we have one more scheduled seminar on February 1, in Lee's Summit. At this point there are still some seats left so if you'd like to attend just click the link "KC land seminar" on the front page of our web site, or call us at 913-837-4665 to reserve your spot.
2) We are looking to add a seminar in the very near future north of the river. Please watch this spot or contact us by email if you'd like to attend a seminar in the northland and we'll get you the details as soon as they are set.
3) If you have any group, investment club, or just friends considering investing and you'd like us to make our presentation on investing in cropland, just contact us as we'll be glad to schedule a meeting that fits your schedule.
As always call us at 816-299-2330, 913-837-4665, or email us at info@RuralKC.com
Friday, January 28, 2011
Lee's Summit Land Seminar
After two successful and well attended events in Leawood last night our first seminar was held in Lee's Summit. Like the first two sessions this one was very well attended and we had to bring in extra chairs to hold the over capacity crowd. At first we thought we were going to have a sound problem as a local band was setting up to practice in the space next to the Realty Executives Office. But they were very cordial when we asked them to delay their practice and so the meeting went off without a hitch.
As usual the best parts of the meeting often come during the question and answer session and in the informal meetings afterward. At both this and the second Leawood meeting we had potential tenant farmers in attendance. This gave investors thinking about purchasing land the opportunity to ask the farmers directly about issues relating to taking care of the land, how leases could be set up and other pertinent questions.
There are some questions that are repeatedly asked at each meeting and we are going to address some of them in subsequent posts since it seems they are on most investors minds. The first is what is to keep the farmer from overusing or abusing the ground that is rented to them. There are a couple of reasons why this reasonable concern can be avoided.
1) The reputation of the farmer. Farming is a very local business. Most farmers have grown up in the same area their entire lives. Any farmer abusing land will soon find it difficult to get anymore land to rent. Like in any other form of human endeavor farmers are competitive, and no one wants to be known as a poor farmer. For pretty soon that farmer would be unable to find any land to rent.
2) If a farmer would abuse the ground by over fertilizing it, for example it would be of less use to him in subsequent years. The farmer with a long term lease will want to improve, not abuse, the land. In the vast majority of cases where a farmer is given a long term lease the ground will wind up being better than it was when the farmer first started the lease. What a great difference between the experience most landlords have and what most landowners have when renting farm ground.
3) Avoid short term leases. A farmer who is only given a one year lease has no incentive to improve the ground. He will avoid certain farming practices that cost money but only pay off in the long run. Instead he will concentrate on doing what he can to boost the current years crop without caring about the long term affect on the ground. By comparison if he know he is going to be farming the ground for several years he will gladly make the investments of both time and material to improve the ground so as to get bigger yields in the future.
In summary the best way to avoid having a farmer abuse the land is to make sure you are renting to an experienced farmer and giving him a long term lease. That way both he and you have the same goal in mind which is to improve the ground for it's long term best use.
As usual the best parts of the meeting often come during the question and answer session and in the informal meetings afterward. At both this and the second Leawood meeting we had potential tenant farmers in attendance. This gave investors thinking about purchasing land the opportunity to ask the farmers directly about issues relating to taking care of the land, how leases could be set up and other pertinent questions.
There are some questions that are repeatedly asked at each meeting and we are going to address some of them in subsequent posts since it seems they are on most investors minds. The first is what is to keep the farmer from overusing or abusing the ground that is rented to them. There are a couple of reasons why this reasonable concern can be avoided.
1) The reputation of the farmer. Farming is a very local business. Most farmers have grown up in the same area their entire lives. Any farmer abusing land will soon find it difficult to get anymore land to rent. Like in any other form of human endeavor farmers are competitive, and no one wants to be known as a poor farmer. For pretty soon that farmer would be unable to find any land to rent.
2) If a farmer would abuse the ground by over fertilizing it, for example it would be of less use to him in subsequent years. The farmer with a long term lease will want to improve, not abuse, the land. In the vast majority of cases where a farmer is given a long term lease the ground will wind up being better than it was when the farmer first started the lease. What a great difference between the experience most landlords have and what most landowners have when renting farm ground.
3) Avoid short term leases. A farmer who is only given a one year lease has no incentive to improve the ground. He will avoid certain farming practices that cost money but only pay off in the long run. Instead he will concentrate on doing what he can to boost the current years crop without caring about the long term affect on the ground. By comparison if he know he is going to be farming the ground for several years he will gladly make the investments of both time and material to improve the ground so as to get bigger yields in the future.
In summary the best way to avoid having a farmer abuse the land is to make sure you are renting to an experienced farmer and giving him a long term lease. That way both he and you have the same goal in mind which is to improve the ground for it's long term best use.
Monday, January 24, 2011
More Land Seminars are added
Well our second seminar in our Leawood office was almost at capacity like our first one. At the current time we are actually over booked on our Lee's Summit seminar on the 27th. In anticipation of more people signing up we have added another seminar in Lee' Summit on Feb. 1st. If you are signed up for the Jan. 27th Lee's Summit seminar and for some reason would like to change to the 1st. just let us know by calling us at 913-837-4665, or email us at info@RuralKC.com
Thursday, January 20, 2011
Land Seminars proving very popular
After last nights snow we started ratcheting down our expectations for tonights seminar. We had to add this evenings seminar to our schedule after the first one filled up. We expected a lot of no shows but exactly the opposite has ocurred. We had people calling to make sure we were still having the seminar and as of the time I write this, which is just before noon we've already had 9 new attendees show up.
We will be close to filling up this add on seminar and that makes me curious about if we will need to add another seminar in Lee's Summit as the one scheduled on the 27th is already at capacity. If you would like to attend a seminar but find that they are filled give us a call at 913-837-4665 or email us at info@RuralKC.com and we'll set up a new seminar to accomodate you.
We will be close to filling up this add on seminar and that makes me curious about if we will need to add another seminar in Lee's Summit as the one scheduled on the 27th is already at capacity. If you would like to attend a seminar but find that they are filled give us a call at 913-837-4665 or email us at info@RuralKC.com and we'll set up a new seminar to accomodate you.
Wednesday, January 19, 2011
Our Land Seminars
We held the first of three seminars on investing in cropland last night at our Leawood Kansas office. The response to these seminars has been overwhelming. So much so that we have had to schedule a second Leawood seminar on the 20th. Currently our Lee’s Summit seminar on the 27th is filled up. If we receive any more attendees we’ll have to schedule another one in Lee’s Summit as well.
The intent of these seminars was discussed in an article about our team that appeared in the KC Star on January 9th and again in the Business section on January 11th. Below is that article.
“The great Lebo Land Rush” is what one of Bill Gaughan’s clients from Florida called his recent efforts to buy some cropland in Coffey County Kansas. Gaughan, founding partner of Rural KC Real Estate a real estate team specializing in rural property, said that cropland sales by investors continue to soar and finding parcels that meet investor needs can be a real challenge. “The investor that made the humorous remark about the Lebo land rush had been frustrated as each time he identified a property it quickly sold. We did finally find him a property he liked and it was the second parcel he has purchased this year without leaving Florida to actually see it.”
Investors have turned to cropland in great numbers especially since the start of the recession in 2008. Cropland when compared with other potential investments has shown to be a wise choice for the informed investor. Cropland Investment LLC had this to say about investing in Cropland, “Over the last 15 years cropland returns have exceeded stock and bond returns with up to 60% less risk. In general cropland has been a lower risk/higher return asset and a strong inflation hedge. It is like buying gold that pays a dividend.”
Gaughan points out that there are two returns when investing in cropland. The first is the appreciation in value over time of cropland and the second is the return you get from renting out the cropland to farmers. According to the USDA Economic Research Service, “Farmland is unlike any other investment as it can weather economic storms, yield consistent returns, act as hedge against inflation, and pay investors for holding it.
U.S. farmland values have increased roughly 6.7% over the last 20 years and 4.5% over the last 100 years. U.S. farmland has also paid its owners cash rents of roughly 5.8% of its value since 1987. When combined, farmland has returned to investors 12.5% per year over the past 20 years. “Since cropland is a finite resource that cannot be increased it has held its value remarkably well over time. According to the USDA Economic Research Service In the past 100 years there have only been 3 occasions when cropland has temporarily dropped in value, the Great Depression, the inflation boom and boycott of grain sales to the Russians in the early 80’s, and the first year of the current recession.
But to most investors, purchasing cropland raises a lot of unanswered questions. How do I know I am buying good land? How do I find and negotiate with renters? How do I know I’m not paying too much, or not getting enough return on rental income? Can I be sure my land will not be damaged? What are the risks in cropland investing? Because of that Rural KC real estate is sponsoring a couple of seminars on investing in cropland. Brad Gaughan sales agent refers to it as “Cropland Investing 101”.
“We wanted to find a way to allow investors to get an overview of not only the opportunity, but also the process in cropland investing. So we along with Frontier Farm Credit are holding seminars in Leawood on January 18th and in Lee’s Summit on January 27th. We will be making some brief high level presentations on cropland investing, but more importantly will be opening up the seminar for questions, and will be willing to meet with investors privately. We have also invited some farmers interested in renting from investors to attend so that investors can talk directly with them."
Jarred Sterling, Financial Services Officer with Frontier Farm Credit, agrees with the idea of cropland as a solid investment. "We have seen throughout our territory a consistent, strong demand for highly productive, good quality farmland. It only makes sense as a lender to provide financing for properties that can generate a solid rate of return.” To allay concerns of potential investors, Sterling also added that “there is no shortage of loan funds with Frontier Farm Credit, including long-term fixed rate financing.”
Just as cropland investing is different from most investment opportunities so too is purchasing cropland different from a normal real estate transaction. There are three, not two interested parties, and the renter is the one who is more important to the investor than the seller. “The investor will have a relationship of a few weeks with the seller, but may work with the renter for several years”, said Danicia Duncan Sr. partner in Rural KC Real Estate. “It’s our job to assist the investor in not only purchasing the right land, but also to forge the best possible relationship with potential renters.”
Since seating is limited investors are asked to register to attend, investors should visit www.KCLandSeminar.com, call Rural KC at 913-837-4665, or email info@RuralKC.com. Rural KC’s web site is www.RuralKC.com. Frontier Farm Credit can be reached at 785-594-2900 or email jarred.sterling@frontierfarmcredit.com
The intent of these seminars was discussed in an article about our team that appeared in the KC Star on January 9th and again in the Business section on January 11th. Below is that article.
“The great Lebo Land Rush” is what one of Bill Gaughan’s clients from Florida called his recent efforts to buy some cropland in Coffey County Kansas. Gaughan, founding partner of Rural KC Real Estate a real estate team specializing in rural property, said that cropland sales by investors continue to soar and finding parcels that meet investor needs can be a real challenge. “The investor that made the humorous remark about the Lebo land rush had been frustrated as each time he identified a property it quickly sold. We did finally find him a property he liked and it was the second parcel he has purchased this year without leaving Florida to actually see it.”
Investors have turned to cropland in great numbers especially since the start of the recession in 2008. Cropland when compared with other potential investments has shown to be a wise choice for the informed investor. Cropland Investment LLC had this to say about investing in Cropland, “Over the last 15 years cropland returns have exceeded stock and bond returns with up to 60% less risk. In general cropland has been a lower risk/higher return asset and a strong inflation hedge. It is like buying gold that pays a dividend.”
Gaughan points out that there are two returns when investing in cropland. The first is the appreciation in value over time of cropland and the second is the return you get from renting out the cropland to farmers. According to the USDA Economic Research Service, “Farmland is unlike any other investment as it can weather economic storms, yield consistent returns, act as hedge against inflation, and pay investors for holding it.
U.S. farmland values have increased roughly 6.7% over the last 20 years and 4.5% over the last 100 years. U.S. farmland has also paid its owners cash rents of roughly 5.8% of its value since 1987. When combined, farmland has returned to investors 12.5% per year over the past 20 years. “Since cropland is a finite resource that cannot be increased it has held its value remarkably well over time. According to the USDA Economic Research Service In the past 100 years there have only been 3 occasions when cropland has temporarily dropped in value, the Great Depression, the inflation boom and boycott of grain sales to the Russians in the early 80’s, and the first year of the current recession.
But to most investors, purchasing cropland raises a lot of unanswered questions. How do I know I am buying good land? How do I find and negotiate with renters? How do I know I’m not paying too much, or not getting enough return on rental income? Can I be sure my land will not be damaged? What are the risks in cropland investing? Because of that Rural KC real estate is sponsoring a couple of seminars on investing in cropland. Brad Gaughan sales agent refers to it as “Cropland Investing 101”.
“We wanted to find a way to allow investors to get an overview of not only the opportunity, but also the process in cropland investing. So we along with Frontier Farm Credit are holding seminars in Leawood on January 18th and in Lee’s Summit on January 27th. We will be making some brief high level presentations on cropland investing, but more importantly will be opening up the seminar for questions, and will be willing to meet with investors privately. We have also invited some farmers interested in renting from investors to attend so that investors can talk directly with them."
Jarred Sterling, Financial Services Officer with Frontier Farm Credit, agrees with the idea of cropland as a solid investment. "We have seen throughout our territory a consistent, strong demand for highly productive, good quality farmland. It only makes sense as a lender to provide financing for properties that can generate a solid rate of return.” To allay concerns of potential investors, Sterling also added that “there is no shortage of loan funds with Frontier Farm Credit, including long-term fixed rate financing.”
Just as cropland investing is different from most investment opportunities so too is purchasing cropland different from a normal real estate transaction. There are three, not two interested parties, and the renter is the one who is more important to the investor than the seller. “The investor will have a relationship of a few weeks with the seller, but may work with the renter for several years”, said Danicia Duncan Sr. partner in Rural KC Real Estate. “It’s our job to assist the investor in not only purchasing the right land, but also to forge the best possible relationship with potential renters.”
Since seating is limited investors are asked to register to attend, investors should visit www.KCLandSeminar.com, call Rural KC at 913-837-4665, or email info@RuralKC.com. Rural KC’s web site is www.RuralKC.com. Frontier Farm Credit can be reached at 785-594-2900 or email jarred.sterling@frontierfarmcredit.com
Subscribe to:
Posts (Atom)
