The 2019 Property Guide: Top 5 Smart Investment Properties on the Market

Many folks dream of owning a ranch, but often don’t realize the handwork that it entails. But there is no doubt that owning land is always going to be a worthwhile investment. However, not all prospective buyers are looking to spend all their time on the property. Instead, they are trying to find properties which will add value to their existing portfolios or be capable of bringing in significant returns on investment.

The Western States offer a huge variety of investment opportunities, no matter whether you are looking to build up a property portfolio or just trying to create a legacy for your family. So, with that in mind, this guide will look at the top 5 smart investment properties on the market.

What to Look For

If you are looking at investing in ranch land, then you should take into account the following factors:

• Location: Near National Parks, hunting zones, Townships, etc.
• Water and Mineral Rights
• Livestock Holding Capability
• Current and Historical Financial state of the property
• Recreational Activities: access to landowner hunting tags and private access to fishable waters
• Land issues such as access, easements, and zoning

All of these factors will have an impact on the initial valuation and your ability to add value to the property. Here are five areas that are worth taking a closer look at.

Elk Creek Ranch, Colorado

Elk Creek Ranch (ECR) in Meeker, Colorado is an exclusive sporting club offering some of the best fly-fishing and hunting in the whole country. Owning property within the ranch gives you membership to a five-star sporting club with a limit of 67 families. Investment-minded buyers will be attracted by the ability to build top-quality lodging on their own parcel. This, combined with the membership to ECR, should ensure a healthy return on investment.

Hayden, Colorado

Heading north-west of ECR brings you to Hayden, which is ideally located for exploring the nearby Steamboat Springs. Properties in the area offer the perfect combination of generating agricultural income while enjoying year-round recreational activities.

Demand for properties with excellent access, secluded locations, and choice lodgings has been on an upward trajectory for many years now, and there are no signs that this trend is going to change any time soon, making now a great time to invest.

Laramie and Wheatland, Wyoming

If you are looking for a recreational escape which is also capable of generating sustainable income from agriculture or private lodging, then ranch land in Laramie and Wheatland represent sound investments.

Recreation enthusiasts will love the diversity of wildlife which comes through the properties, such as elk, deer, and upland birds. Properties with existing landowner tags represent an excellent investment opportunity as that avoids a lottery drawing. The quality of the elk, as well as the fly-fishing, will attract outdoorsmen willing to pay a premium for exclusive access and lodging.

End of The Road Locations in Utah

The mountainous region of southern Utah represents outstanding value for investors, as they offer year-round recreational activities and the ability to generate significant agricultural income. Properties in the area enjoy some of the best big-game hunting opportunities in the country with large numbers of elk and mule deer roaming the lands.

Leasing grazing land to livestock owners is a great way to make the land work for you, especially if you are not planning to be onsite throughout the year.

Patagonia

If you fancy going a bit further afield, then the Patagonia region of Argentina and Chile offers many exciting investment opportunities. The region is ideally located to run very profitable livestock operations or to be used as an exclusive sporting lodge. Discerning fly fishers from the US and further afield will be happy to pay premium prices for the opportunity to fish in a completely new environment.

Beef is big business in the area, so even if you don’t plan to run cattle yourself you could gain sizable cash inflows from leasing out grazing land.

Four Crucial Things to Do Before Buying Fly-Fishing Properties

The West has miles and miles of well-stocked waters, so it can take a lifetime to find your perfect spot. However, when you do, you will want to come back for more. In fact, some folks love it so much that they start looking for properties so they can enjoy the waters from their porch.

If you are considering buying a fly-fishing property for business or recreational purposes, then there are many things you need to consider before signing on the dotted line. Therefore, we have put together a quick breakdown of four crucial things to do before buying fly-fishing properties.

Have a Clear Picture of What You Want

Many people dream of owning their own ranch with private access to gold-medal waters, but it takes time and patience for this dream to become a reality. There are many properties across the states of Colorado, Missouri, Montana, and Wyoming that offer precisely this, but you need to make sure that you have a clear picture of what you want from a ranch.

Some ranches are better suited to different kinds of fishing, as well as business operations. So, if you are planning to operate a fishing lodge, it is essential to have a clear idea of any existing access rights and zoning regulations before you get started on improvements.

Do Your Homework

There are many factors that will determine the best property for you. For example, if you are looking for exclusive access to a stretch of water, you will need to look into the existing access and water rights to the property. Not only will this affect the valuation of the property, but it will also affect the level of privacy you might enjoy. For some people, the prospect of being interrupted by members of the public on a Sunday morning is less than desirable.

Get to Know the Lay of the Land

It is always a good idea to get to know the area surrounding the property before you decide to go and view the property. You should have a list of desirable qualities both on and off the ranch such as transport infrastructure, access to nearby townships, local amenities, and other recreational activities in the area. In terms of the property, you will need to have a clear picture of the type of view you want when you are enjoying the waters.

Learn about the Local Ecosystems and Environment

The water that runs through a particular property goes on a long journey through numerous states and other properties. Unsurprisingly, this can have a considerable impact on specific stretches of water. You will want to know the details about the existing water rights and ecosystems on the property, as well as neighboring properties.

When you conduct your initial search, you should have a clear idea of any current environmental issues that could affect the quality of the fisheries on your property. Factors such as irrigation and flow impact can mean that some ranches will be less desirable than others.

As you can see, there are a lot of things that can impact the valuation of a property and the quality of its waters. Therefore, you should always conduct a thorough due diligence process before committing to any purchase.

First-Time Buyers Guide: 5 Questions to Ask Before Buying a Ranch

Buying ranch land is a significant investment, so it is essential that you cover all your bases before making a final decision. Before you get started, you need to consider what you want the land for and then move forward from there. This is because some ranches and states are better suited to specific operations.

There is a huge variety of properties out there, so it can be tough to know where to start. This is especially true if you are a first-time buyer. So, if that is the case, these five questions to ask before buying a ranch will prove invaluable.

How is the property reached?

Access to the property is a vitally important consideration. Remote mountain ranches offer solitude, but they can get pretty lonely if you are snowed in for six months. You will want to have a clear picture of the local road infrastructure and whether it offers year-round access. In more remote locations, you may need to use a neighbor’s private access road, so you will need to be aware of any existing agreements.

What is the financial state of the land?

This is a question that you should come straight out with at an early stage. Some ranches may look like outstanding investments in the photos, but a look at the figures will show a completely different picture. For example, if you are looking for a turnkey agricultural operation, then you will want to be sure that any current activities are financially viable.

Landowners should keep detailed records of their cash flows and financial projections for all income-generating activities. If these figures are not readily available, you should walk away.

Could you tell me about the existing mineral and water rights of the property?

Mineral and water rights can have a massive impact on the value of the property, access to parts of the property, and potential agricultural and recreational operations. The selling price of a property will reflect any rights that are included with the property; therefore, you should take this into account when you begin your search.

Having exclusive water rights will make it easier for you to make improvements to the irrigation of the property.

Are there boundaries clearly marked?

You should be aware of the boundaries of the property and whether there are any existing easements or access issues in place. When making initial inquiries about a property, you should ask if a survey has been recently carried out. This will be able to give you a clear indication of whether the valuation makes sense to you and will also give you a clear idea of what amount of land you have to play with.

The last thing you want to do is to start developing land that breaks any existing agreements with the landowners. For example, if part of your land is on or near BLM land, there will be limits to what you can and cannot do on that land, so it is important to be clear about this from the start.

How is the property zoned?

Following on from the above point, you will need to know about any zoning restrictions in place. For example, if you are planning to run a private recreational lodge near a lake or national park, you will need to make sure that you have the legal right to build lodging in this area. If this is not the case, then you are going to have to reevaluate your options, which may lead to costly delays and lots of frustration.

Buyer’s Guide: Four Things to Notice While Surveying a Ranch

Buying ranch land is a significant investment which will take lots of time and effort to ensure that you choose the best property for you. One of the areas that often causes confusion is how much land you are actually purchasing. Before a property goes to market, it should have been accurately surveyed so that potential buyers know exactly what they are buying.

The seller or agent should be able to provide you with detailed maps and data on the unique topography of the property. Before going forward with any purchase, you should insist on seeing up-to-date survey data to avoid any unpleasant surprises further down the line. With that in mind, we have put together this short guide on things to notice while surveying a ranch.

Ownership

Land ownership is a tricky area of law, especially when you consider the number of conservation easements and public land ownership programs currently running in the United States. It is imperative that you know what land you are buying. For example, you need to determine what percentage of the land is deeded and how much is leased.

If you have significant tracts of leased land on the property, this will put some restrictions on the types of operations you can run on it, as well as having financial implications.

Boundaries

The survey should clearly demarcate the borders of the property, highlighting any existing easements, public land issues, and access rights. If part of the property ends on a riverbank, then it is essential to know what access issues there are and what the state of play is with the water rights. The same is true if the property lies on or near any reservations, national parks, or monuments.

As with all kinds of land and property, misunderstandings about borders can cause longstanding problems with neighbors and may have an impact on how you plan to use your land. So do yourself a favor and do the due diligence before going ahead with a purchase.

Environmental Factors

Knowing what is happening below the surface of the land is also very important. If you are planning to run an agricultural ranch, then the quality of soil will be vital to a successful operation. Soil surveys will indicate the quality of the soil throughout the property.

While conducting your due diligence, you should look at the current operations of the ranch and determine what the yield has been for various crops. All these figures should be readily available.

See for Yourself

In addition to looking at the survey maps and data, we would always advise that you visit the property in person. This will enable you to get a clear picture of what the property actually looks like and how it is being used. While you are on site, you will be able to address any concerns regarding the property.

Pay particular attention to how clearly the boundaries are marked and whether existing fences are in good condition. Paying a visit to the site will also help you to see the current state of the property, buildings, infrastructure, and improvements, so you can get a more accurate indication of whether this property offers the best value for your chosen operations.

A Quick Guide to the Top Cattle Ranches for Investment-Minded Buyers

Investment-minded buyers usually look at ranch land as a way to expand their property portfolios. They will often focus on the trends regarding land appreciation and invest accordingly. However, by only focusing on the price of land, investors sometimes miss out on outstanding investment opportunities.

One way that investors can make the land work for them is by looking at ranches which are generating agricultural income. This doesn’t mean that you have to run that side of the business yourself as we will highlight below when we take a look at top cattle ranches for investment-minded buyers.

Why Invest in Cattle Ranches?

The cattle industry is one of the main drivers of the agricultural sector in several states. The demand for beef and dairy products is enormous throughout the US and large parts of the world. For livestock owners, the demand for high-quality feed and grasslands is unlikely to ever see a decline. Therefore, it makes sense to think long and hard about how your land or prospective purchase can work for you.

For example, if you are looking at an investment property in states such as Kansas, Nebraska, Montana, and Wyoming, it is worth noting that there are more heads of cattle than people!

How to Bring in Sustainable Income from Cattle?

So, let’s assume that you are not planning on spending a considerable amount of time on your ranch. Then there are a couple of ways that you can go. First, we would recommend hiring a ranch management company as they will be able to advise on the best ways to utilize the land. If you decide to run cattle, then they will be able to put a team in place to manage the day-to-day operations.

Secondly, you could opt to lease part of your land to a neighbor for grazing. This option will bring a fixed source of income over an agreed number of years. It truly is a win-win solution as the lessee will be looking to increase their holding capacity to gain more revenue from their operations, while you will benefit from a guaranteed source of income.

Where to Look for Top Cattle Ranches?

As we mentioned earlier, some states have more heads of cattle than humans, so if you are planning to invest in cattle ranches you may wish to focus your search for properties in those states. The type of ranch which works best for you will depend on how much time you want to spend there. If you are planning to diversify operations or spend some time on site for leisure purposes, then you should look for a spot with year-round access, some great recreational activities, and access to local townships. Hayden in Colorado and Laramie in Wyoming are two areas which immediately spring to mind.

Ranches in the southwest of Wyoming offer excellent investment potential as the local topography lends itself to large-scale cattle operations while being close to Yellowstone National Park with its multitude of recreational activities. The area is also home to many different species of big game, so the hunting is first class.

You could also look for properties which have existing grazing leases, as this will mean that you will already have an income stream in place.

A Quick Introduction to Three States with the Top Agricultural Properties in the Western United States

Working the land is a hugely demanding but rewarding lifestyle that has helped sustain a Western culture for many generations. Nebraska and Kansas are consistently in the top ten states in terms of annual agricultural output. States like Wyoming actually have more cattle than people, so you can see what important role agriculture plays in state economies.

The West has always played an active role in the agricultural industry of the United States, so if you are thinking of investing, these states are home to some of the top agricultural properties in the Western United States.

Nebraska

Nebraska is famous for its beef-so much so that it is unofficially known as the beef state. Beef makes up a large proportion of agricultural receipts, and the state consistently performs favorably compared to the much larger state of Texas. Even if you are not planning on holding cattle yourself, you will be able to play an active role by leasing grazing land.

Corn is also a huge cash generator for the state, which will come as no shock as the state is officially known as the “Cornhusker State.” Corn is a valuable crop to grow due to the numerous markets, which demand high-quality products. For example, corn and its byproducts can be used to feed livestock, so producing corn can help other farmers in the state breed top-quality livestock.

Kansas

Kansas has always been synonymous with agriculture, so it makes sense to set up here if you are looking to hit the ground running. The Sunflower State has always led the way in terms of agricultural innovations and exports. As a result, it has been nicknamed the “breadbasket” of the United States, as well as the “Wheat State.”

Unsurprisingly, most ranch properties in the state will play some role in the production of livestock and/or crops. The soil is well-suited to soybean, wheat, and corn crops, while dairy production is a growth industry within the state. All these factors, combined with the wonderful community spirit, make Kansas a great state to invest in agricultural properties.

Wyoming

The Cowboy State is famous for its rolling grasslands and mixed topography across a range of elevations. These natural features combine to create an environment conducive for highly successful and lucrative livestock operations. It is also home to the rodeo, so there are many opportunities to diversify operations.

If you are not planning to hold livestock, then there are several ways to get the land to work for you. Livestock holders are always on the lookout for high-quality grazing land, which can bring in some sustainable income. You could also grow some crops such as hay, barley, corn, wheat, and sugar beets. All of these crops are in demand from livestock owners and food companies alike.

Many ranches offer secluded locations which will allow you to take advantage of the stunning landscape when you have some downtime.