Purchasing hunting land is a great investment for those who enjoy hunting and want to have a place to call their own. Hunting land can be used for a variety of activities such as hunting, fishing, camping, and even farming. However, buying hunting land is a significant investment and requires careful consideration.

In this guide, we will walk through the process of purchasing hunting land, including how to find the right property, how to finance the purchase, and how to navigate the legal aspects of the transaction. By following these steps, you can be confident that you are making a sound investment and will be able to enjoy all the benefits that owning hunting land has to offer.

Main Types of Financing For Hunting Land

Listed below are the most popular financing options when trying to purchase hunting land:

1. Cash

If you have the funds available, you can pay for the land in cash. This is the simplest and quickest option.

2. Contract For Deed / Land Contract

A land contract is a type of owner financing in which the seller agrees to accept payments over time until the buyer has paid the full purchase price.

3. Bank Financing

You can take out a mortgage loan from a bank or other lender to purchase the land. This option typically requires a down payment and a good credit score.

Additionally, usually a 20-30% down payment is required when financing through a bank.

It is important to note that the terms and requirements for each option may vary depending on the lender or seller, and it is a good idea to consult with a financial advisor or real estate attorney before making a purchase.


How To Come Up With The Down Payment For Hunting Land

I've listed out a few ways to come up with that down payment for hunting land if you're going to finance through a financial institution:

1. Cash

Having taxed cash already on hand is the easiest and quickest way to meet those down payments requirements.

2. Equity

Taking out equity to purchase a piece of land involves using the equity in your current property as collateral to secure a loan.

Here are the steps to take out equity to purchase land:

1. Assess your current property's value: To determine how much equity you have in your property, have it appraised by a professional or use online tools to estimate the value.

2. Choose a lender: Look for a lender that offers home equity loans or home equity lines of credit (HELOC) that you can use to purchase land.

3. Apply for the loan: Once you have chosen a lender, you will need to complete an application and provide information about your income, credit score, and property value. Your lender may also require an appraisal of the land you wish to purchase.

4. Use the proceeds to purchase the land: Once your loan is approved, you will receive the funds, which you can use to purchase the land.

5. Repay the loan: The loan will have to be repaid over time, with interest. The interest rate for a home equity loan is often lower than other types of loans. The interest may also be tax-deductible, if the loan is used for home improvements or to buy, build or substantially improve a main home.

It's important to keep in mind that taking out equity from your current property can be risky, as you are using your home as collateral. If you are unable to make the loan payments, you could lose your home. Additionally, taking out equity to purchase land will increase your debt-to-income ratio and may affect your credit score. It's recommended to consult with a financial advisor or real estate attorney before making a decision.

3. Collateralize

Collateralizing things you own to buy land involves using the value of your assets as security for a loan. This can include assets such as real estate, vehicles, savings, or investments. Here are the steps to use your assets as collateral to buy land:

1. Assess the value of your assets: Determine the current value of the assets you own that you are willing to use as collateral. This can include real estate, vehicles, savings, or investments.

2. Choose a lender: Look for a lender that offers secured loans and is willing to accept the assets you have as collateral.

3. Apply for the loan: Once you have chosen a lender, you will need to complete an application and provide information about your income, credit score, and the assets you are using as collateral. The lender may also require an appraisal of the land you wish to purchase.

4. Use the proceeds to purchase the land: Once your loan is approved, you will receive the funds, which you can use to purchase the land.

5. Repay the loan: The loan will have to be repaid over time, with interest. The interest rate on a secured loan is usually lower than on an unsecured loan.

It's important to keep in mind that collateralizing assets can be risky, as you are putting your assets at risk of being taken by the lender if you are unable to make the loan payments. Additionally, if you put assets as collateral, it may affects your credit score negatively. It's recommended to consult with a financial advisor or real estate attorney before making a decision and be aware of the risks and the terms of the loan.

Hidden Costs To Consider When Purchasing Hunting Land 

Listed below are some of the most well-documented hidden costs that might arise after you've purchasing your hunting land:

1. Survey and title search: Before purchasing land, it is important to have a survey completed to confirm the boundaries of the property and to ensure that there are no encroachments or disputes with neighboring properties. Additionally, a title search should be conducted to ensure that there are no outstanding liens or other issues with the property's title. These costs can add up and should be factored into your budget.

2. Environmental assessments: Depending on the property, it may be necessary to conduct environmental assessments to determine if there are any potential hazards or contamination issues. These assessments can be costly and may require additional remediation.

3. Property taxes and insurance: Once you own the land, you will be responsible for paying property taxes and insurance on the property. These costs can vary depending on the location and size of the property, so it is important to budget for them in advance.

4. Closing costs: Closing costs, such as attorney fees, title insurance, and recording fees, should be considered when purchasing land. These costs can add up and may be higher for a land purchase than for a home purchase.

5. Development and improvement costs: If you plan to build on the land, you will also need to consider the costs of developing the land, such as clearing, grading, and installing utilities. Additionally, if the land does not have access to public utilities, you will have to pay for installing them.

6. Maintenance costs: After you purchase the land, you will need to budget for ongoing maintenance costs such as fencing, mowing, and other upkeep.

Other Ways To Pay For The Hunting Land Payment

Here are some additional ways to make that payment for your piece of hunting land:

1. Form T (Timber)

Form T (Timber) is a form used by the Internal Revenue Service (IRS) to report the sale or transfer of standing timber. The form is typically used to report the income received from the sale of timber, such as when a landowner sells timber from their property to a logging company. The form is used to report any income received from the sale of the timber, and it is required by the IRS when the income from the sale of the timber exceeds $600.

Form T (Timber) is not a way to pay for land, but rather a way to report the income received from the sale of standing timber to the IRS. If you own land with timber on it, you can sell the timber to generate income that can be used to pay for the land. It is important to note that the money received from the sale of the timber will be subject to taxes, and you should consult with a tax professional for guidance on the tax implications of selling timber.

It's also important to note that selling timber from your land may have environmental and legal consequences, so it's recommended to consult with a forester or an attorney before making any decisions regarding the sale of timber.

2. CRP Income

CRP stands for Conservation Reserve Program, which is a federal program administered by the United States Department of Agriculture (USDA) that provides financial incentives to landowners who agree to remove environmentally sensitive land from agricultural production and plant it with certain grasses, shrubs, and trees to improve water quality, prevent soil erosion, and provide wildlife habitat.

The program pays landowners an annual rental rate for a period of 10 to 15 years, and landowners are also eligible for cost-share assistance to help cover the cost of planting the approved cover.

It is important to note that CRP is not a direct way to pay for hunting land, but it can provide some financial assistance to landowners who are interested in using their land for hunting or other conservation activities. By enrolling in CRP, landowners can receive annual rental payments that can be used to pay for the cost of purchasing hunting land or other conservation activities. Landowners can also use the cost-share assistance to improve the hunting or wildlife habitat on their land.

It's important to note that in order to be eligible for CRP, the land must meet certain criteria such as the land must be considered environmentally sensitive, it must be used for agricultural production and the landowner must agree to remove the land from production for a certain period of time.

It's recommended to consult with a USDA Farm Service Agency (FSA) office or a Natural Resources Conservation Service (NRCS) office for more information about the CRP program and how it can be used to pay for hunting land or other conservation activities.

3. Lease Rights For Hunting

One way to use your land to generate income that can be used to pay for the land is by leasing it out for hunting. This involves allowing individuals or hunting clubs to hunt on your land for a fee, typically paid on an annual or seasonal basis. This can provide a steady stream of income that can be used to make payments on the land you own.

To lease out your land for hunting, you will need to determine the terms of the lease, such as the hunting seasons, the types of game that can be hunted, and any rules or restrictions that apply. You will also need to determine the fee for the lease, which can be based on factors such as the size of the land, the quality of the hunting, and the location of the land.

It's important to note that before leasing out your land for hunting, you should consult with local and state regulations to ensure compliance and also consider obtaining liability insurance to protect yourself from any potential accidents on the land.

In summary, leasing out your land for hunting can be a way to generate income that can be used to make payments on the land you own. It involves allowing people to hunt on your land for a fee and the income generated can be used to make payments on the land. However, it's important to ensure compliance with local and state regulations and consider obtaining liability insurance.

4. Lease Crop Land

Leasing out your land to farmers for crop production is another way to generate income that can be used to make payments on the land you own. This involves allowing farmers to use your land to grow crops such as corn, soybeans, or wheat in exchange for a lease payment, typically paid on an annual or seasonal basis.

To lease out your land for crop production, you will need to determine the terms of the lease, such as the length of the lease, the type of crops that can be grown, and any rules or restrictions that apply. You will also need to determine the lease rate, which can be based on factors such as the size of the land, the fertility of the soil, and the location of the land.

It's important to note that before leasing out your land for crop production, you should consult with local and state regulations to ensure compliance and also consider obtaining liability insurance to protect yourself from any potential accidents on the land.

All in all, leasing out your land for crop production can be a way to generate income that can be used to make payments on the land you own. It involves allowing farmers to use your land to grow crops in exchange for a lease payment and the income generated can be used to make payments on the land. However, it's important to ensure compliance with local and state regulations and consider obtaining liability insurance.

Things To Know Before Buying Hunting Land

Here a few additional (and simple) things to remember and keep your eye on before buying hunting land:

1. Location

One of the most important things to consider when purchasing hunting land is the location. The land should be situated in an area that is known for having a good population of the game you are interested in hunting. The location should also be accessible by road or have reasonable proximity to a town or city for logistics and support.

2. Habitat

Another important factor to consider when purchasing hunting land is the quality of the habitat. The land should have a mix of cover types such as timber, brush, and open fields to provide food and cover for the game you are interested in hunting. The land should also have a water source, whether it be a river, stream, or pond, as this is essential for the survival of many species of wildlife.

3. Zoning and Regulations

Before purchasing hunting land, it's important to research and understand the zoning laws and regulations in the area. Make sure that the land is zoned for hunting and that there are no restrictions that would prevent you from using the land for hunting. You should also research any hunting season dates, bag limits, and other hunting restrictions that may apply in the area.