If you are a land buyer, whether you are a timber man, hunter, outdoor enthusiast, or stock market refugee, you are INVESTING. You perceive the land to be more valuable than the money you give for it. You purchase land with some expectation that the land ownership experience will benefit you in some way.  You are looking for some sort of return on investment, whether that return is measured in dollars, in trophy deer, memories with their family, or some combination of all of these.

That being the case, I think your approach to land ownership should be like that of an investor, and based on knowledge and objective evaluation criteria. By thinking like an investor you can better manage the process, better understand the approach, better understand the land, and better understand yourself. It’s a much better blueprint for success for land ownership.

You need to know how professional land investors evaluate and analyze property before they buy it. You must be wise about how you invest both your time and money, avoiding people and circumstances that get in your pocket or waste your time.

Investors (at least the good ones) go through a process of learning everything they can before they invest. They study the physical characteristics and components of the asset, they understand the market, they understand who their competition is, and what professional advice they need. It’s very analytical and unemotional. You need to think like that……like an investor.

Investors know they have to be able to do two things:

• Act quickly when an opportunity presents itself
• Recognize an opportunity when they see it.

Being able to act quickly is a function of getting your finances in order. We talked about that in a previous article, and it is pretty straightforward - Don’t buy more than you can afford. But, recognizing an opportunity when you see one is not so cut and dried. In fact, it is downright difficult, and determining price or value is the part of the process that most folks (even the professionals) struggle with the most.

And here is the problem. No two pieces of land are exactly the same. You simply can’t boil land value down to a black or white decision. What is land worth? Well….it depends. Factors like location, access, water sources, timber, zoning, wildlife, topography and market trends all impact land value and desirability, and ALL of these can vary in importance depending on what part of the country you are in. These physical characteristics are what determine the potential usage of land, and since a property’s value is ultimately based on how it can be used, here is where the value is determined.

So what do you do? How will you be able to know an opportunity when you see one? Well, a little research and a lot of common sense go a long way. In order to assess value, licensed land appraisers go through a process of developing a list of comparable properties and then adjusting these “comps” based on their unique or valuable characteristics. Most of the information an appraiser uses is available to the public, so you can find it as well. Spend a little time in the Tax Assessor’s office looking up recent sales. Make a list of desirable characteristics like water, timber, frontage, and topography. Get a feel for raw land value…or the value of the “dirt” alone. Talk to a forester, a land appraiser, or a land lender about values of improvements and natural resources. Meet with the County Tax Appraiser. Ask a lot of questions. Determine market trends. Are land values going up, down, or remaining stable? Evaluate your own comps. In time, you’ll get better and better at estimating value.

But remember, the goal here is not to become an appraiser. The goal is to spot an opportunity…..before someone else can. That’s what investors do.

We all have the desire. We all have the ability to dream big dreams that start out, “Someday I’m going to own…..” So, why is it that most people never seem to get past dreaming about land ownership and actually pull the trigger? Is it fear? Is it lack of knowledge? Is it lack of finances? Maybe, but I think the real reason is that most people have a difficult time translating their dreams into concrete actions. They know what they want, but they don’t know how to get it.

I frequently have folks who come to me looking for land, and I try to pry out of them what it is specifically they want to own. They often lament that they wish they had bought the tract they looked at 3 years ago. These folks are looking for a dream tract, but have no idea what one looks like. They can’t translate their subjective dream into objective evaluation criteria. They are hoping for a “eureka” moment. They are waiting for a tract of land to offer an in-person emotional experience that matches the one in their dreams. Well, sometimes that happens, but usually not.

So, how is it that some people figure out how to overcome obstacles and live the dream? Those folks know the secret. They know what seasoned land investors know. The key to getting from dreams to reality is to have an effective plan to get you there. You have to plan to own land. Otherwise, you’ll spend the rest of your life dreaming and miss out on actually living the dream.

Here is my blueprint for a successful land ownership plan.

1. Define EXACTLY what you want and write it down. Include land characteristics like water (creeks, streams, or ponds), timber, road frontage, and topography. Think about things like location. How far is too far? Make sure you are clear on how much land you want. Do you want pasture or timberland? Do you want a ready made play place or do you want a fixer upper where you can go piddle?
2. Be honest with yourself about how much you can afford. Discuss it with your spouse, sibling, parent, or whoever you’re going into this with. Write it down and stick to it.
3. Determine how much time you can spend in the search. Be honest here, as well. You’ll get out of this process exactly what you put into it. You have got to spend time in the field. You are going to get some mud on your boots. You might get lucky and find the tract of your dreams on the first day, but don’t plan on it
4. Be clear about why you want to own land. What is the purpose? How will you use it? Could it change over time? Figure it out, and write it down.
5. Get smart. Allocate some time in your plan to educate yourself on land. Read. Learn. Talk to people who have been successful. The more you know, the more confident you’ll be in any decision you make.

Why go through all of this? Why write it down? The reason is simple. If you can’t write your ownership criteria down, then you don’t complete understand what you want, and it is hard to find something, if you don’t know what you are looking for. A written plan is a control document that will keep you focused on the goal. It is effective in the same way a family budget or a business plan is. It keeps your eyes on the prize. It gives you guidance and evaluation criteria that can snap you back to reality when you get emotionally attracted to a tract of land that is way outside of your budget, or beyond your desired drive time, or lacks the dogwoods and native azaleas you so desperately wanted. A written plan is a commitment to do something. It is the roadmap that will help you turn your dreams into reality.

Last week I asked a question of our Facebook Fans.  What does conservation mean to you?  My thoughts were that conservation had become a general term whose meaning depended a lot on the person who used it (and their political viewpoint).  It is with this mindset as a backdrop that I spent three days attending the Mother Earth News Fair in central PA last week.

Conservation vacation?

I'm not really sure what I expected, but the Mother Earth News folks had asked me to come speak about landowner responsibility, stewardship, and blending conservation into a land ownership strategy (all things I believe in), so I happily went.  For the record, central PA is BEAUTIFUL this time of year with rolling hills, farmland, and small comfortable towns.  Fall was in the air, and since I left 98 degree temps in GA, a welcome change.  I had a great time.  My session was well attended, as was the entire event.  People came from all over - speakers, vendors, and attendees.  Well over 10,000 people were there over two days.

Here's what I found out about the Mother Earth News crowd:

• They are ordinary folks just like you and me.
• They have a love of all things outdoors.
• They are passionate.
• They have some great ideas (and great products).
• They are mostly apolitical.
• They just want to make a difference.
• They are nearly all  landowners and aspiring landowners.
• They believe simple is better than complicated.

Here's what I found out about conservation:

• It is alive and well.
• It is being carried out every day by ordinary folks doing extraordinary things.
• It is much more about passion than it is about politics.
• It is a surefire way to create a rewarding and PROFITABLE land ownership experience.

Here's what I found out about me:

• I like central PA.
• I like the folks at Mother Earth News.
• I want to learn (and share) more about the people and products that make up the grassroots conservation movement.

Land owners who are willing to sell or lease conservation acres to new farmers could receive federal money because of a new program offered by the Department of Agriculture.

Click here to learn more and read article

A bit of advice about creeks and lakes.  Creeks with large watersheds (areas that drain into your creek) can go from a trickle to a flood in a flash.  Pardon the pun.  Creeks that flow steadily during periods of regular rain can go dry as a bone in periods of prolonged drought.  Lakes can suffer the same situation.  I have seen farm ponds and lakes go completely dry and fill right back up in the last two years.

Also be aware that lakes and ponds can come with problems, particularly older ones.  Drains in older ponds and lakes are notorious for clogging, leaking, and other problems associated with neglect.  Lakes and ponds (even the older ones) with the newer siphon systems are a better bet than a simple drain stand.  Also be mindful of dam integrity issues caused by trees (particularly large ones) growing on the dam.

Take your time.  Do your homework.  Make sure you’re getting what you want.  Water on a tract is great.  Water problems on a tract aren’t.  And just like a bad location, both are hard to change after you own it.

Good answer.

In the same way location is important, so is water….and for the same reason.  They are characteristics that are hard to change.  Plus, water sources like creeks, rivers, and lakes add to the aesthetic beauty of a tract, enhance wildlife, and create enjoyment opportunities that enhance one’s personal enjoyment.

As you pursue your dream tract, you may want to consider how water resources play into your decision, but be aware that answering “yes” to the water question is just the start.  You need to dig a little deeper, knowing that water comes in three basic varieties – flowing water, lakes and ponds, and wetlands.