Option offer for land purchase

[street]

I have another outside the box question with making an offer for a piece of land.
The land I'm interested in borders mine. The man that owns the land around my ranch lives off grid and own a pretty good junk of land. I asked him one time about selling some of the bottom land and he said, he wasn't interested.

Well, what I'm considering to do is offer him so much per acre and he could collect the rent for next 3 three years. I would own land and pay taxes he gets a fair dollar for land plus he gets next three years of rent from land.

The second offer option I would like your view/opinion on is I could offer starting an annuity for him which would give him so much a month for 10 to 15 years just for an example. This would be the total amount of money for the land, and I would buy an annuity for him.

What is your view on the offer options for purchase. The pros and cons and which one would appeal to you more as a seller.

Also, what other offer option you might have that would be appealing for getting a purchase done. I'm not trying to take advantage and am willing to pay going price, but I want a convincing and accommodating offer when I ask.

Thanks for any views or opinions.

 

[pb4uski]

On the first option, I think it would be cleaner to just increase your offer by an estimate of 3 years rent... so what you planned to offer him per acre plus 3 years rent... cleaner and easier transaction.

I'm not sure I see the attraction of the annuity offer... he could just take whatever you pay him for the land and buy a 10 or 15 year annuity if he wished to.

If taxes are a consideration for him, you might offer a substantial down payment and then installment payments at an attractive interest rate and an option for him to accelerate payments at anytime that he wished to or if he were to die.

 

[RunningBum]

With what limited info we have, I predict he still won't be interested. Did you even talk about a price the first time? Why would he be interested in some gimmick deal?

 

[Ronstar]

Interesting options. But I'm not sure either one will convince him to sell if he wasn't interested in selling the last time you brought it up. Maybe have a conversation with him again to see if he would reconsider selling. If he is unwilling to sell due to tax concerns, then maybe there is something you 2 could agree on to satisfy both parties. Or maybe he has other concerns that could be satisfied in a sale.

But if he doesn't want to sell regardless of price and terms, then I don't see how you can buy it.

My opinion is you need to talk to him to see where he stands.

 

[pb4uski]

... My opinion is you need to talk to him to see where he stands.

+1

 

[skyking1]

He knows you want the land if he sells it. I say keep mending fences with him and establish an agreement that you be in the first position to purchase should he sell.
It is the next best thing to owning it yourself.

 

[ivinsfan]

He said he wasn't interested you need to respect what men like this tell you...he knows you want to buy and where to find you if he wants to sell. You'll just piss him off if you ask again..

 

[ivinsfan]

Ronstar I live around many older farmers No is a complete answer and I don't have to explain why

 

[skyking1]

That is why I made that suggestion above. Mending fences with guys like that is the way to go, and I mean literally.

 

[Venturer]

He said he wasn't interested you need to respect what men like this tell you...he knows you want to buy and where to find you if he wants to sell. You'll just piss him off if you ask again..

I agree ^^^^^^ my paternal grandfather had a moderate size farm that he had a lot of offers to buy but he just wasn't intrested in selling. He had one guy he told that the only way he would ever get any of his land was over his dead body!! There was one particular spot that as a kid and even into my late teens I wanted and was hoping someday to purchase to build my home. But it never was to be. When he passed my Dad's older sister was in charge of disposing of all assets. She and the other sister turned into real b****s and sold everything without letting any of the family know, or have a chance to purchase. There had been a riff of some kind in the past so the sisters got their revenge. There is now a big subdivision on that property and the spot I wanted has a big house on it looking down on most of the rest.

 

[Ronstar]

Ronstar I live around many older farmers No is a complete answer and I don't have to explain why

True,

I would start with some small talk to gauge his openness to just talk. If he seems friendly, follow up with "I know we talked a while ago and you weren't interested in selling. I respect that, but if you ever change your mind, I would still be interested."

 

[silvor]

I’ve found “off grid” guys like space ( land ) more than money.

 

[street]

Thanks for the views and opinions. One thing I don't believe gimmick is a fair word, but I did ask for your views.

I want to offer something that really would work for him. He depends on that rent income to live so having it stretched out where he could have the rent for some years beyond selling might help him out and work for him. I don't believe he is a good manager of money.
I have bought land from this man before, so it isn't that he won't now. I asked him about 10 years ago and we text a about 8 to 10 times a year.

I will see what he says, in the near future and ask if he ever wants to sell to please give me an opportunity and that I would work with him in any way for payment.

I planned on talking to him but wanted to run those options I listed here, to run by him to give him something to think about if he was willing.

 

[arbeadub]

If he's living off the grid is it because he's not social? Maybe a fishing trip would shed more light on what his reason not to sell is.

 

[street]

A lone wolf on a perpetual fishing trip. A tough life and work hard each day just to survive.

 

[ivinsfan]

From what you say he knows you are there and willing...I would just leave it be

 

[Retired Expat]

With what limited info we have, I predict he still won't be interested. Did you even talk about a price the first time? Why would he be interested in some gimmick deal?

I get approached all the time about selling some of my properties which I have no interest or reason to sell. But my response is always the same, “Make Me an offer”. The comps are out there, they know what the places are worth. They know it is not listed for sale so I am not motivated. They need to provide a “Make ME Move” offer that will incentivize me to sell or at least consider selling. You need to do the same and then sweeten the deal. Through in new 4x4 truck or something!

Or pay him for the option of Right of First Refusal so you know you are first inline and will get to beat any offer he does get…..but options cost money regardless of whether or not you get to exercise them

 

[DrRoy]

I would not try to guess what might appeal most to someone else. Maybe having several possible offers and putting them all on the table so he can choose.

 

[street]

I thank you all for the great advice. I have thought about the "Right of First Refusal", but he is a very complex but still very simple person when it comes to business affairs.

I will ask him that if he ever sells if he would give me a call first and we would get it done. I do trust him, and he is a man of his word.

I have paid his taxes on the property in the past because he lets them ride for a couple of years before paying them. I don't want him to lose the land I would really feel terrible for him. He inherited this large place and has sold off some.

At my age I will splurge and pay or offer more because I enjoy owning real estate. Growing up my parents couldn't afford enough land to support the cattle and sheep we had. They had to rent land all their life, so it has always been a dream to own land. I remember asking dad why he doesn't buy land, he wouldn't say anything, but knew they couldn't. Now I can and my hopes of passing it down to my son and family.

 

[Stormy Kromer]

Ronstar I live around many older farmers No is a complete answer and I don't have to explain why

I agree. It is hard to explain but in many situations the land owns the person, the person doesn't own the land.

If this person doesn't want to sell it doesn't matter how much you offer or how. It may set him off.

I've seen many situations where land owners sell to someone they like rather than someone who pressured them and offered more money.

If you're interested in his land, ask him about it and show interest in why he loves it and show him you love and respect your land too. He'll remember.

 

[arbeadub]

You are a good friend to him, paying the taxes helps keep things stable, I am such a wuss that I thought a fishing trip would be a good way to open up a conversation without pressure. now I realize the hardscrabble life may not let him enjoy a day off.

 

[RunningBum]

Thanks for the views and opinions. One thing I don't believe gimmick is a fair word, but I did ask for your views.

The quality of answers relate very much to the quality of the question and information given. As I said, we had limited info. All we knew is that you had offered once. This made it sound to me like you came up with a gimmick way to get him to sell. Later you reveal that you talk with him somewhat regularly, you have bought other land from him, you've paid his taxes before, etc. Totally different picture.

I won't bother next time.

 

[38Chevy454]

As previous replies said, stay in contact with him and let him know you would like to talk if he does sell. Be a good neighbor, help him out when he might need it (that mending fences work or similar).

One idea, if he really does need the rental income from the land. Could you buy with him carrying the note? Pay the fair price for the land, with fair interest rate and adequate down payment to let him have a nice cash bonus at closing. Sounds like he could use a nice infusion of money. Then he gets the monthly payment (income) that is likely greater than the rent currently received.