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Stesso

Financing Land Purchases and Initial Infrastructure

5:12
20:34
27.4K views

At 5:12 in

Nobody told me this about buying land, starting a farm or homesteading!

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What happens here

The presenter clarifies that conventional bank loans are often not suitable for raw land purchases. He advises utilizing specialized options like Farm Credit or USDA Farm Loans, which are available in most states and typically require a down payment (e.g., 25%). He recounts putting down approximately $30,000 for his 60-acre property. He emphasizes the need to save money for these down payments. Crucially, he points out that the land purchase is often the 'cheap part'; significant costs arise from improvements such as tractors, sheds, tools, fencing, and especially water systems. To live on the property while developing it, he purchased and remodeled a used mobile home for $3,500.

Goal: This step discusses various financing options for land, particularly for raw or agricultural land, and highlights initial costs beyond the purchase price, such as housing, clearing, and utilities.

Tools and materials

  • Fencing materials
  • Heavy Machinery (excavator
  • bulldozer)
  • Mobile Home (used)
  • Sheds/Barns
  • Tractor
  • Trucks
  • Water system components

What they say

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sleep good tonight so I had the dream I had the dream probably that you guys have I wanted to live a good clean country life I wanted to breathe good clean country air with manure all around me I wanted to start a first generation farm and what got me inspired was the quality of food and the food system in this country and I don't like it I don't like the way the food system works in this country I want to eat Farm Fresh I want to eat local and that's why I started building a first generation farm so 60 Acres over here that I bought from one of my patients at the hospital this fell was sick we talked a little bit once he got home he got well we came out and looked at a disaster this was an overgrown disaster of a piece of property with trees anywhere from this big to this big it was 40 years abandoned tobacco land it was old tobacco land and what is really important to know about tobacco land or raising cotton or raising a whole lot of other crops is intensively farmed land like that loses top soil there is no top soil left here in the pedmont region and foothills region of North Carolina and Virginia it's all gone it's all been washed away because of intensive poor farming practices that's why people moved out west they moved to Missouri and there's land in Missouri they mooved to Indiana and there's land in Indiana they mooved to Kansas there's land in Kansas there's land out west with top soil okay so the more rule of thumb I guess is the more rural your property is the cheaper it's going to be unless you live in a place like this that has no top soil okay we have jobs we have no top soil and we have land and land was cheap 2,000 bucks an acre for this place 1,800 bucks an acre for that place and 2,000 bucks an acre for that place you do the math it's less than your mcmansion cost right or somebody else is mcmansion the 5,000 ft monstrous house that's 15 ft from your neighbor so how do you acquire the money to buy land well it's a little bit different than going to get a loan I'm a veteran of the United States Air Force I thought I could go get a VA loan zero money down and just buy this 60 Acres over here and I had no idea this 90 Acres was going to be for sale a year later so I went to the VA loan place and I said I think it was Wells farger I was like I'm looking at buying 60 Acres oh raw land no I couldn't buy it I couldn't buy it through a conventional bank loan what I had to do was go to my local Carolina Farm Credit or Farm Credit there's Farm…

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