There are some spectacular horse farms and ranches for sale at any given time, so you’re likely to have a wide variety of properties to consider. You may be tempted to dive right in and start touring the areas you’re considering for your property, but we encourage you to be deliberate in your process, because we know the time you put in up front will pay big dividends later on.To help you, we’ve put together this quick read – a primer of sorts.So, let’s get started. There’s quite a bit to consider when searching for horse property. We’ll start first with some general questions, and follow that with a list of important considerations to keep in mind when searching for properties. Here we go:1. What’s your level of interest in horses?Of course, you like horses, or you wouldn’t have made the decision to buy horse property.But beyond that, the spectrum ranges from wanting property that can accommodate one or two of your own horses, to a commercial horse facility that specializes in professional training, boarding, breeding, or more.And keep in mind too, that your level of interest may progress, say from beginning novice to a fully involved professional, which may lead you to a new property or property upgrades.2. Where do you want to be?Naturally, there may be many variables that influence this decision, with the basic ones being things like a desire to be near friends and family, or to live in a particular school district or county, or near a particular city. But beyond that, keep in mind that your answer to Question #1 will also bring its own considerations, such as:Desire to be near facilities that accommodate your horse related interests, such as open state land, trails, or particular training or show facilities for specific types of horses
Desire to be near the ‘hub of the industry’ for your particular horse activity. This is particularly important if you’re a professional serving a market, or if you’re aspiring to achieve levels of accomplishment in the horse industry. The ability to network easily with like-minded horse people may be a consideration.3. Do you want to build new on vacant land, buy an existing horse property, or buy an existing property that can be renovated to accommodate horses?You can specify one or be open to all of these possibilities, and your preference may be influenced by some of the factors to consider as you keep reading.For now, know that each of these options has its own advantages and disadvantages.- Building new will enable you to have exactly what you want, but it will also take more planning and lead time, and may be more expensive.- Buying an existing property is likely to be quicker, and possibly less expensive, but you may not find exactly what you want.- And buying an existing property that can be renovated may bring some advantages of the first two options, but require planning, patience and vision that not all buyers have.4. What is your price range or budget? Will it be a cash purchase or financed? Is it contingent on the sale of other property?Like the answers to Question #3, each of these alternatives has its own advantages.If you’re paying cash, you should be able to close on your purchase sooner, and possibly negotiate a better price.If you’re financing your purchase, it’s best to be in touch with a lender in advance, to confirm your buying power and being the application process.With those broader questions behind us, let’s get into more specific questions and important factors to consider:How many acres are you looking for?Think about the layout of the farm – the residence, barn, stable, paddocks, round pen, and storage for equipment, hay, feed, tack, bedding, etc., as well as pastures and hayfields (unless you plan to purchase all your hay), riding arenas and on-site trails.Are there zoning or other restrictions that need to be considered in the areas where you want your farm?If you intend to maintain grazing pastures, you’ll want to allocate two acres per horse. Be sure to select properties where horses are a permitted use or allowed under a special use permit.And be aware of boundary line setbacks, which can vary by unit of government.Know your soils.Know what the soil types are before purchasing the property.During wet seasons, poorly-drained clay and loamy soils in areas of high horse traffic are a maintenance nightmare and can be a health problem for horse’s hooves.Ideally, barns and paddocks should be on well-drained sandy soils, or if they are on fine-textured soils, they should be graded to promote positive water drainage away from barns and high traffic areas.Many farms will have a variety of soil types, which should influence the layout of the farm based on the uses for which the soil types are best suited. High loam soils are great for hayfields and pastures to help withstand drought. Agriculturally marginal soils can be used for trail riding, training areas, and turnout areas where horses are kept on hay instead of pasture.What would you like the topography to be like?The lay of the land has both practical and aesthetic relevancy. A picturesque horse farm on a rolling, tree-lined landscape has enormous aesthetics appeal.However, from a practical standpoint, some level ground is desirable for building and training areas. Also, hayfields and pastures do best on level or gently rolling tillable ground.Topography controls how well surface water drains from the property. Wetlands, swamps, and ‘pothole ponds’ characterize poorly drained areas, which contribute to ecological diversity, but have little practical use on a horse farm.Access to waterA horse farm operation will use potable water in both the residence and the barn, and depending on the number of horses, the gallons used in the barn may far exceed the amount used in the residence.Most rural areas don’t have access to a public water supply, so it’s important to have a good well (or wells) available, or that an aquifer exists, underlying the property, from which a good water supply can be developed.The primary uses of water on the farm are for watering and washing horses, general cleaning, dust control in training areas, and, in some cases, irrigation.Irrigation used to keep pastures green or to water hayfields can exceed all other uses. If available, surface water, from a pond, lake or stream, can often be used for irrigation purposes.Availability of other utilities and servicesOther utilities and services covers wastewater disposal, electrical hookup, heating energy source (natural gas, LP gas, fuel oil), internet availability, cell phone coverage and solid waste disposal. All are important to consider.In rural areas, septic tanks and drain fields are the most practical way to treat and dispose of wastewater. However, not all soils are conducive to the use of these systems. Percolation tests may have to be done to determine whether the soils are suitable.Natural gas is the preferred energy source for heating, but many rural areas will only have propane gas available. Horses generate a lot of body heat, so the need for space heating may be limited. Heating wash water and preventing horse’s drinking water from freezing can usually best by done with electricity.
How is the coverage?Having good internet connection and cell phone coverage is becoming increasingly necessary. Some remote areas may still have connection problems.How will you manage the stinky stuff?Horse farms generate a considerable amount of solid waste in the form of manure, and you’ll want to consider how manure will be managed when planning a horse farm purchase. Options are spreading it on the land, perhaps giving or selling it to nearby farmers, or having it hauled to a landfill by a contract waste hauler.Existing and Planned StructuresWhether you’re buying an existing horse farm or one with existing structures that can be renovated for horse related uses, inspect closely (1) the quality of the structures, including buildings and fences, (2) for the possibility of nuisance problems that result from poor layout or adoptive use, (3) to determine the cost of renovations necessary to fit your intended uses of the property.Get Help!Find an agent that truly understands equestrian properties – if they don’t know what you’re talking about when you’re talking “horse”, they can’t adequately represent your best interests. Do your own due diligence to find one with the necessary knowledge.And last, but certainly not least, consider the neighborsHorse people are generally quite neighborly and easy to get along with. Generally, they like to network and socialize with people who have similar interests, like horses and country living.That said, there are people who enjoy outdoor activities with little regard for environmental stewardship or the sensitivity of others, so before purchasing, it’s prudent to ask some questions about the neighbors, or better yet, to meet them personally.Whew, there it is.Hopefully, that list of questions and considerations was helpful, and not too daunting. Yes, there’s a lot to consider before buying horse property, or any property for that matter.But, as the saying goes, it’s also not rocket science, but rather simply a matter of doing your homework and due diligence. And of course, in that regard, it’s also important to work with a qualified and competent Realtor

I’m often asked by newbie landlords do I have any basic tips about investing in residential property. I respond by highlighting 3 essential aspects to making a landlord’s residential investment a success.These I have called my three pillars of investment and they are:1. Patience2. Research3. TimingI always advise any prospective landlord that there is no magic wand to making a landlord’s residential investment a success. In recent years, the press have been full of stories about individual landlords who have made a fortune just by buying a few houses, and there are plenty of books and websites that feed on this kind of misguided ‘claptrap’.We at Property Hawk have said all along that our message is all about how landlords won’t make a million in six months. What Property Hawk is about, however, is giving landlords and other property investors an insight into how to avoid the pitfalls that are out there and how, with a little skill and effort, landlords can invest in a residential property to improve their long-term financial prospects.There is no one secret to successful property investing, but there are three core pillars of wisdom that offer landlord’s a foundation on which to build their property investment approach.PatienceThe problem for many novice property investors is also one of their biggest assets – their enthusiasm. Like children at Christmas, they have too much energy and are so excited that disaster is almost sure to follow. Similarly, the novice property investor, having made the decision to buy, wants to ‘dive in’ and buy a buy-to-let property straight away. A few years ago, when the house price boom was in full swing, there was the philosophy that if you didn’t buy straight away you would miss out altogether and never be able to secure an affordable buy-to-let property. This is no longer the case.Experienced landlords always recommend playing a waiting game. While the UK is building approximately 40,000 too few houses annually, a prospective landlord cannot escape from the fact that there are still approximately 25 million existing residential units out there. If you as a potential landlord miss out on one purchase, there are always plenty more around the corner. Residential investors should, rather than embarking on a frenzy of activity, pace themselves for a potential ‘long-haul’ of identifying and then securing the right property. That is not to say that if the right residential investment property and a clear bargain presents itself a landlord should be slow to act, but landlords should be aware that there is a danger of buying a buy-to-let property purely to invest, and not because it represents a good investment.By having patience, landlords can cultivate an approach where, having identified a suitable property, they make what would normally be considered a silly offer at, say, 10%-15% below the asking price. This should be based on the investment value to the landlord.Having made their offer, landlords should continue to view and make other offers. Eventually, somebody will accept a landlords offer and they will have the basis of a ‘sound investment’ secured below its market value. Patience is not only a virtue for landlords, but, an essential element of, and pillar to, a sound residential investment. Remember – shrewd property investors make their profits when they buy investment property, not when they sell.ResearchAccess to the internet provides us with a wealth of data and information that 10 years ago landlords would have paid a fortune for – or it simply wasn’t available.- Helpful research sites.My advice to prospective landlords is use it. If you are looking to buy an investment property for the first time, there will be a stream of questions to ask.How should landlords value an investment, and what about buying at auction?The basic area-specific research is something only the landlord can carry out – in other words it’s down to the landlord. This is all about potential landlords scoping the residential investment – finding out about prices in the area, and how the area has performed against other areas. Landlords should ask are there any local or national developments that could influence property values? What, if any, is the rental demand like in the area and what is the current and proposed rental property supply? By the end of the exercise prospective landlords should have figures for rents, values, yields, annual property price changes, the planning pipeline and property build costs per square feet.
All this information will mean that landlords obtain a thorough understanding of the local market and what have been (and could be) the returns in the future on their property investment.By the end, a prospective landlord should be an expert on the area they intend to invest in, knowing at a glance how much a property is worth to buy and will rent for. This will allow a prospective landlord & property investor to watch the market and spot which properties are a bargain and which are overpriced property.Many ‘novice’ landlords have not done this. Instead, they have put their trust in ‘advisors’ to invest their money, or have bought in areas they don’t know or do not understand, on the basis of glossy marketing spiel.
This has led to the problems that are now emerging in many towns and cities concerning novice landlords and ‘discounted’ investment schemes. Here, properties are sold at what the agent purports to be a bulk buy ‘discount’ of, say, 15%-20%, though the reality is that the discount is applied to a price that may be 35% inflated, which still means the investment properties are a rip off.Careful research by any buyer would have revealed that it was possible to buy similar residential properties down the road at 80% of the cost and that a huge number of properties were being built at the same time, all largely aimed at buy-to-let investors, causing a glut in the rental market. Proper research means you as the landlord will be nobody’s fool, and you won’t be left with an investment ‘lemon’ having filled the pockets of the property developer and disingenuous scammers.TimingGood investment is all about timing. Unfortunately, no landlord has the insight that gives them perfect timing – buying at the bottom and then selling precisely at the top of the market. It is not rocket science to figure out that if a landlord buys at the bottom of a cycle and sells at the top they will make more money than investors who buy and sell depending on personal circumstances.The effect of timing on a landlord’s overall levels of return can be dramatic. For instance, anybody unfortunate to invest in property in 1973 saw a loss of their capital over the period 1973 to 1977 of 40%. In 1989, I invested in a property that took a full 10 years to recover to its original purchase price. But it did – and then proceeded to double in value in one 12-month period. If only I had had the foresight to buy just before it doubled.However, the overall value of residential property is largely outside a landlord’s hands, being influenced by macro economic factors, such as interest rates or consumer confidence. It is as well not to get too hung up on these factors.Residential investment is a ‘long-term’ game, which means that peaks and troughs, particularly in the short-term, will have less impact on your overall returns the longer the investment is held. This again is another reason for landlords to exhibit patience. By buying property at regular intervals over the long-term, a landlord will inevitably buy some cheaply and some when prices are higher, but, overall, landlords should see a steady and long-term rise in the value of their residential investment portfolio.

Owning investment real estate is a great option for those looking to make a longterm commitment as opposed as a shortterm speculation. The management of such investment should always be trusted to professionals who are dedicated and committed to the industry and know how to deal with complex situations that are otherwise commonly ignored by inexperienced landlords.It is of the utmost importance that property owners know how to select and interview the property management company that best seems to specialize in the kind of investment that they are looking to have managed.If you are unsure what to ask your potential property manager before you sign a long term agreement with them, here are some questions that you can use as a guideline.1. What kind of property management experience do you have? You need to know for how long they have managed property and whether they have enough back up from the rest of their group.2. How many properties do you currently manage? Hiring a property manager that handles several thousand units could be somewhat risky as your property might end up lost in an ocean of other properties.3. How often do you inspect occupied and vacant units? It is important to know the frequency of inspections in occupied units. The reasons why you need to know this information is because you need to be assured that there will be a comprehensive assessment of potential damage to occupied units that has been caused by tenants. You also need to know the frequency of inspection though vacant units to prevent any potential risk of fire or other casualties. Trust me, I have seen fires occur in vacant units.4. What do you do with the information obtained from unit inspections? This is particularly important to ask because you need to make sure that the property management company has policies in place regarding the payment of damages to units caused by tenants or their guest. It would be of no benefit at all if they just report to you that all units were inspected, if they do not not have an aggressive plan of action based on unit inspections.5. How important is preventative maintenance to you and how is this handled by your company? Extensive and costly deterioration can occur to properties if there isn’t a preventative maintenance plan in place. Your property manager should keep a preventative maintenance log showing all items inspected and addressed as well as the signature of the maintenance supervisor acknowledging completion of all required tasks.6. How do you handle ongoing/daily maintenance? You need to know whether one or more dedicated maintenance technicians will be assigned to your property (based on the size of the property and number of units). It is also important to know the level of engagement of the maintenance supervisor (if any) and his role in ensuring that all maintenance issues are being addressed.7. After hours emergency handling. Have the property manager explain their process for handling after hours emergencies such as water leaks, fire or any other casualties. Ask whether there is an after hours phone number which tenants would have access to.8. Tenant Selection Plan. You need to know if the property manager has a Tenant Selection Plan that can be customized for your property. The TSP will help define the requirements that potential tenants would have to fulfill prior to renting a unit to them. You might also be want to be involved in the development of the rental criteria to ensure that only applicant who meet your requirements are approved. Keep in mind that you as well as your property manager are required to observe and conduct business based on Fair Housing Law. Your property manager should be absolutely familiar with what terms to use and which ones avoid when advertising your vacant units and when interviewing applicants.9. Transparency. How can I have access to review accounts payables, delinquency reports, collections, etc. You as the property owner should define the frequency and types of reports that your property manager should make available to you.10. Property Market Analysis. Does your management team shop comparable properties to keep up to date with local occupancy rates, average rent rates, amenities offered, specials, etc.? Please be aware that not all property management companies provide this service.11. What is your area of specialty? It is important to keep in mind that there are several specialties within the property management industry. If you own commercial property, you should probably stay away from property managers that have experience managing only multifamily or condo properties. The most common areas of specialty in property management are: Single Family, Multifamily, Condo Associations, Cooperatives, Retail, Medical, Commercial and Industrial.Management companies that specialize in the management of distressed and difficult-to-manage properties are usually capable of handling a broader spectrum of assets and engagement types, such as REO, Receiverships, and disputed assets.Retaining the right property manager can enhance the value of your investment property while making your life easier as you don’t have to deal with the headaches that this activity often represents. If you have plans to expand your real estate investment portfolio it is definitely worth having a strong property management company on your side.