The IOWA FARMLAND rush continues on...........

[Fishhead24]

Auction Results



Cedar County, IA
May 31, 2007

145 Acres sold for $696,000 ($4,800/Ac.)
158 Acres sold for $726,800 ($4,600/Ac.)

» Click Here For Brochure (PDF)

Johnson County, IA
May 31, 2007

98 Acres sold for $480,200 ($4,900/Ac.)

[Fishhead24]

Up and up it goes, where it will stop nobody knows.

RIDE THE WAGON

[DcifrThs]

what % of purchase price is typically given by banks as a mortgage?

EDIT: evan, will you consider locking any more threads FH makes obviously selling this crap? thanks

Barron

[Fishhead24]

[ QUOTE ]
what % of purchase price is typically given by banks as a mortgage?

EDIT: evan, will you consider locking any more threads FH makes obviously selling this crap? thanks

Barron

[/ QUOTE ]

20-40% and with interest rates as low as they are this is a great investment.

Since last September 1st alone, prices on farmland in Iowa have escalated over 24%!

Expect a 15-20% over the next 365 days.......MINIMUM. All the while recieveing over $200 an acre to cash rent the land.

ALL ABOARD!

[DcifrThs]

[ QUOTE ]
[ QUOTE ]
what % of purchase price is typically given by banks as a mortgage?

EDIT: evan, will you consider locking any more threads FH makes obviously selling this crap? thanks

Barron

[/ QUOTE ]

20-40% and with interest rates as low as they are this is a great investment.

Since last September 1st alone, prices on farmland in Iowa have escalated over 24%!

Expect a 15-20% over the next 365 days.......MINIMUM. All the while recieveing over $200 an acre to cash rent the land.

ALL ABOARD!

[/ QUOTE ]

[x] quoting historical returns as a precursor to sell something.

[x] banking on rates to stay low during a time when the next move is likely to be up.

also, banks should be requiring more than 20% down. what % of properties purchase put down 20%? 30%? 40%? less? more?

what % of mortgages are floating rate mortages taken out on this land?

thanks,
Barron

[Fishhead24]

The CEO of GM speaks out today on ethanol. I understand his reasoning is agenda ridden, but make no mistake about it this is a huge plus for ethanol and in turn farmland prices............



"It's time to move beyond exclusive reliance on the historical regulatory approaches that clearly haven't solved these problems, like CAFE, and move forward to embrace solutions that will yield the results that we need - lower oil consumption, lower oil imports, lower carbon gas emissions," he said.

Wagoner again pushed GM's offerings of vehicles that can run on either gasoline or a blend of 85 percent ethanol known as E85.

"It's increasingly clear that, of anything that we can do over the next decade, ethanol has by far the greatest potential to actually reduce U.S. oil consumption, reduce oil imports, and reduce carbon gas emissions," he said.

[Evan]

[ QUOTE ]

EDIT: evan, will you consider locking any more threads FH makes obviously selling this crap? thanks

[/ QUOTE ]
I was away and with very little computer access since Wednesday night.

There's a better chance of bad threads getting moderated quickly if you use the notify button since that sends me an email which I'll get on my phone. I only got one notification while away (though admittedly I didn't get a chance to take care of it since it was just before I fell asleep last night).

[Fishhead24]

Keep in mind, I DO NOT DOUBT the naysayers that say the ethanol boom will not continue.

HOWEVER, MAKE NO MISTAKE ABOUT IT, UP UNTIL AT LEAST THE YEAR 2010 THE UNITED STATES GOVERNMENT, ETHANOL PLANTS(majority in Iowa), CAR MANUFACTURES WITH FLEX FUEL CARS, etc., etc., will make a strong push to see if this can work. Ethanol will be expanding to most every state in the union within the next year and becoming much more available at most service stations throughout the country.

Right now, CORN is the far and away the #1 staple to produce ethanol.

[Fishhead24]

Currently my guess that less than 1% of this board knows what E-10 or E-85 is.

Less than two years from now, well over half of this board and probably more will be well aware of what E-10 and E-85 is.

http://www.e85fuel.com/index.php

[DesertCat]

Buying real estate with a gross return of less 5% is very risky, esp. when the rents are being driven by a temporary government program. What happens when things return to normal and rents drop, maybe to $100 per acre?

The problem is that any rational investor wouldn't pay $5k per acre, or even $4k per acre, even assuming the ethanol boom lasts forever. Property taxes/expenses reduce your net rents by at least 10%, so if you are earning $180 per acre, and mortgage costs are 6-7%, you ideally want a rental yield in that range or higher. A 6% yield implies paying $3,000 per acre, a 7% yield implies about $2,500 per care. Unless rents continue to rise (or interest rates dramatically drop), that's eventually where prices will be.

It sounds like you are advocating buying at a top even though the fundamentals are ridiculous because you believe another top will come. You must have gotten rich during the internet bubble. Why not just play roulette and put all your money on black?