|
Seller will lease back at 5% return for 3 yrs
Looking for a solid investment??? This is it! Tillable farmland is at its highest demand and the supply is low. Appreciation seems inevitable. Ethanol has fueled the tremendous increase in the price of corn and with that the price of land. National Defense advisors have labeled the oil and energy craze "a national security issue." This attitude conveys the fact that we need to be self-sufficient and seems to be backed up with the 16 ethanol plants in Minnesota and the 5 others currently under construction.
These 1005 acres are located between the rich and dense soil of the Red River Valley (near Fargo, ND) and the sandy soils of Detroit Lakes, MN. The land holds moisture, yet can shed the heaviest of rains. The yields can match those of the bean and corn belt. This season the seller is anticipating close to 200 bushel/acre corn.
Other factors that make this land valuable include its location to main roads. All land is within 2 miles of 4 lane MN Hwy 10. Also most of the land is bordered by 2 or more roads, and at least one road being a paved 9 or 10 ton road. Furthermore, the land is trenched and ¾ of it is tiled.
The seller has farmed all over Becker, Clay and Mahnomen counties and better land will not be found. He has farmed for 40 years and is working to phase himself out of the business. He and his son are willing to lease back the land at $197.50/acre (a 5% return) for 3 years with an option to renew for an additional 3 years.
Local lenders say land is selling from $2,200 to $2,800/acre. This is not always the case as most farmers are holding onto their land and raising corn. The seller sold a 40 acre parcel to an investor for $3,400/acre in June 2007. There is no other ag land currently on the market in our area. The return on investment and probable appreciation make this investment solid.
An additional 215 acres of lakeshore land can be purchased at $7,000/acre. This ag land can be leased back at $197.50/ac also. The land is located on Duck Lake (97 ac and 12 ft deep) and LaBelle Lake (124 ac and 18 ft deep). The lakes are connected by a culvert and both hold good numbers of walleyes, northern pike, sunfish, crappie and bass. The shoreline of LaBelle Lake is sandy and a hard bottom. Duck Lake also has a hard bottom, but because of lack of activity has more weeds on its shore.
$ 3,618,000 Takes all 1,005 Acres! 
|
Click on any photo to see it full size (it will open a new browser)
|