Owning a Texas ranch is a dream for many Americans. Before you begin investing in making this dream a reality, here are six points to consider if owning a ranch in Texas is right for you:
1. Lifestyle
Owning a ranch in Texas requires a very specific lifestyle. The responsibilities associated with maintaining acres of land, and caring for animals, require that you dedicate your life to running your ranch. Many ranchers are unable to take vacations or freely expend their money on unnecessary or extravagant purchases due to their responsibilities and expenses. While the sacrifices may be significant, the sense of pride that you can only receive from running a ranch will be life-changing.
2. Entrepreneurship
Due to the expenses associated with ranching, you will need to organize your operation and prepare a business plan to present to lenders. If your talents lie with the work associated with running the ranch rather than the entrepreneurial aspects, you may want to hire a business consultant to assist you with the tasks required to establish your ranch.
3. Expenses
There are significant initial expenses such as purchasing land, acquiring livestock, constructing buildings, acquiring necessary equipment and hiring staff if necessary. After the ranch is up and running, many other expenses arise; although it may be tempting to purchase a new truck or equipment when you experience a good year, ranching requires careful budgeting to cover unforeseen expenses and lean financial years. Some banks have special financing programs for ranchers and may be able to offer you benefits that a traditional lender may not.
4. Generating Income
When most people think of a Texas ranch, they think of beef cattle. While the beef cattle business in Texas is one of the most successful in the country, running a beef cattle ranch is not your only option to make a living. Many ranchers grow to produce, board horses, run bed and breakfasts, or run camping and hunting trips on their land. If you network well with neighbors, you may be able to exchange work for livestock or other things that you need to get started.
5. Investment Potential
Purchasing land in Texas is a very safe investment, as many people want to visit, live in, or own property in Texas. If your finances require that you begin by purchasing a small parcel of land, by building a house on the land or selling your small parcel to a neighbor who wants to expand their property, you may be able to sell your land for a profit later. You could also generate income by renting the property to others, then utilizing the rental income as needed to make your dreams a reality.
6. Taxes
In addition to the low tax laws already in place in Texas, there are additional tax benefits available specifically to ranchers in Texas.
If you are ready to take steps towards making your dream of owning a Texas ranch your reality, a good place to start is by talking to established ranchers, meeting with a business consultant, and contacting a real estate agent with experience in the area of Texas you are interested in acquiring a ranch in.