SE Nebraska, Near Misery and Cans Ass! | That's rambling for you young bucks.
I went to a land sale yesterday with two friends. One has more money than he knows what to do with and the other likes to cash rent farm ground. The One with the money ran the land up to the point the cash rent would yield 2% after real estate taxes. Didn't get it but was last bidder. I asked him how he would feel about the investment if land values dropped too half after purchase. He said then he'd be getting 4% on the money he had or 2% on the money he once had. He also said he would hope the taxes would decrease. We all three laughed a bit about that. He also said he might just sell it to another of his Corps and take the write off and if he needed to. My eyes got squinty on that one.
Anyhow I have come to the conclusion that those entities with cash and they are many and large value thing pretty much at the rate of return they can generate, not if they can pay for themselves. It now seems kind of obvious that if I had bought land on that basis and not on the ability to make the payment and sold some of it as the price increased I would have a whole lotta land and less debt than I now have. But that's all water under the bridge. Looking out your a hole is the best corrective lens in the world and so forth.
Enough for now. Have a good day.
Edited by nebfarmer 3/17/2016 07:12
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A little American Motors on "Whats It Worth".
