NEMO | Expensive Hobby - 2/4/2026 10:03
How do 1031s help when building a growing operation at a young age?
Young guys don't sell much ground. In rare cases, maybe they have a chance to trade up by selling something poorer or farther from home, but that doesn't happen much. Even when it does, they usually haven't owned the other ground very long.
In my opinion, 1031s hurt young guys trying to build operations WAY more than they help them. They help the absentee landowners and the speculators more than anyone else. Maybe there is something I'm missing. But every time someone I've never heard of outbids a local to buy a farm it seems like they had 1031 money that had to get spent.
Not sure what he meant. But I was thinking along the lines of a young guy should buy anything possible when it comes up for sale even if it's out of the way a little. Then if something closer or more desirable comes up a few years later closer to home you can sell the stuff you don't really want and 1031 it into the land you do want.
Buying cheaper land when available can work like a hedge. You can be paying on it and building some equity to be able to flip it into something else.
Not sure right now is the time to be doing that, but over the last 20 years I'm glad I purchased stuff whenever I had an opportunity. If anything comes up in the future I could try to unload some of the farther away pieces to 1031 into closer to home. Timing to do it might be an issue, but one never knows. |
Expansion? Grass or building?
