Texas Ranches For Sale

Helping You Buy And Sell Ranches And Land In Texas


Buying A Cattle Ranch In Texas

Looking to buy a cattle ranch in Texas? Here are a few things you should keep in mind.

First, decide what kind of ranch you want to buy. There are cow-calf operations, which involve raising calves to be sold for beef, and feedlots, which finish cattle that have been raised elsewhere.

Second, consider the location of the ranch. You’ll want to think about things like climate, access to markets, and proximity to other cattle ranchers.

Third, take a look at the ranch’s infrastructure. This includes things like fences, corrals, and barns. You’ll want to make sure that the ranch has everything it needs to support the number of cattle you want to raise.

Finally, think about the financial side of things. Buying a ranch is a significant investment, so you’ll need to be sure that you can afford it. You should also have a plan for how you’re going to generate income from the ranch.

If you keep these things in mind, you’ll be well on your way to finding the perfect cattle ranch for you.

Decide what kind of ranch you want to buy

When you decide to buy a cattle ranch, you need to consider what type of ranch you want to purchase. There are several different types of ranches, each with their own benefits and drawbacks. The type of ranch you choose will largely depend on your personal preferences and needs.

The first type of ranch to consider is a working cattle ranch. These ranches are usually much larger than other types, and they include all of the necessary infrastructure for raising and caring for cattle. Working cattle ranches can be expensive to purchase and maintain, but they offer a complete solution for those looking to get into the cattle business.

Another type of ranch to consider is a hobby ranch. Hobby ranches are typically smaller than working cattle ranches, and they are designed for those who want to raise a few cattle for personal use. Hobby ranches usually don’t have all of the infrastructure of a working cattle ranch, so they can be less expensive to purchase and maintain. However, you will need to do more of the work yourself if you choose a hobby ranch.

Finally, you may also want to consider a hunting ranch. These ranches are usually large tracts of land that are used for hunting purposes. Hunting ranches can be expensive to purchase, but they offer a unique opportunity to own a large piece of property.

No matter what type of ranch you decide to purchase, you need to be sure that you are getting a good deal. There are many factors to consider when buying a ranch, and you should consult with a real estate agent to ensure that you are getting the best possible price.

Consider your financing options

There are a few things to consider when financing a cattle ranch. The first is the type of loan you will need. There are many types of loans available, each with its own terms and conditions. You will need to research the different options and choose the one that best suits your needs.

The second thing to consider is the down payment. How much money you will need to put down will depend on the type of loan you get and the purchase price of the ranch. You will need to have a down payment saved up before you can purchase a ranch.

The third thing to consider is the interest rate. The interest rate on your loan will determine how much you will have to pay back each month. You will want to shop around and compare interest rates before you decide on a loan.

The fourth thing to consider is the length of the loan. The longer the loan, the lower the monthly payments will be. However, you will pay more interest over the life of the loan if you choose a longer loan term.

The fifth and final thing to consider is the closing costs. These are the fees charged by the lender at the closing of the loan. They can vary depending on the lender and the type of loan you get. You will need to factor these into your budget when you are considering your financing options.

Find the right location

There are a few key factors to consider when choosing the right location for your cattle ranch. First, you’ll want to consider the climate and terrain of the area. The climate should be suitable for cattle, and the terrain should be able to support a large number of animals. Second, you’ll want to consider the proximity to markets and slaughterhouses. The closer the ranch is to these facilities, the easier it will be to sell your cattle. Finally, you’ll want to consider the cost of land and the availability of water. The cost of land will be a major factor in your decision, and the availability of water will be crucial for the health of your cattle.

Choose the right cattle

There are many factors to consider when choosing the right cattle for your ranch. The first step is to decide what type of cattle you want. There are many different breeds of cattle, each with their own unique characteristics. Some breeds are better suited for meat production, while others are better for dairy production. Once you have decided on the type of cattle you want, you need to choose the right age group. Young calves are more expensive, but they will grow into adults more quickly. Older cows are cheaper, but they will not produce as much milk or meat. You also need to decide on the right gender. Male cattle are generally more expensive, but they produce more milk and beef. Female cattle are cheaper, but they produce less milk and beef. Finally, you need to decide on the right color. Some people prefer black cattle, while others prefer white cattle. There is no right or wrong answer, it is simply a matter of preference.

Make sure the ranch is profitable

There are a lot of things to consider when buying a cattle ranch, but one of the most important things is to make sure the ranch is profitable. There are a lot of expenses that go into running a ranch, and if the ranch isn’t making enough money to cover those expenses, it’s not a wise investment. There are a few key things to look at when evaluating a ranch’s profitability: the cost of feed, the price of cattle, the overhead costs of running the ranch, and the potential for selling other products (such as beef or dairy products). If a ranch isn’t generating enough income to cover all of these things, it’s likely not a profitable business.

Article About Texas History And Ranching

We found an interesting article from the Texas Historical Commission titled:

The article covers ranching beginning in Texas (Tejas) in the 18th Century, including mention of the six missions set up by Spain in 1717.  It is a quick and interesting read for anyone interested in the history of ranching in Texas.  Here is a small segment of text from the article, with full credit going to the THC and the author:

Things changed in the longhorn’s favor in the 20th century. In 1927, the U.S. government sent federal agents to the Wichita Wildlife Refuge in Oklahoma to save the breed from extinction. The agents examined remaining longhorns, selecting only the purest specimens to serve as the base stock. Private citizens also helped preserve the breed. One such individual was J. Frank Dobie, a native Texan and University of Texas at Austin professor, who in 1941 published The Longhorns. In his book, Dobie celebrated the breed and shared old-time cattle ranchers’ tales about the longhorn way of life. Success was achieved in 1969, when the State of Texas Legislature designated the Official State of Texas Longhorn Herd.


Thanks to friends for supporting this post:  DWS, SRO, JVC, JSB, DB, DG, FS, MD, SD, JH, CH, JCP, PD, SA, HS

Government Resources About 1031 Exchanges For Ranches In Texas

Since the values for ranches in Texas can be so large, tax consequences often can become the topic of interest for both the buyer and the seller. There were some tax law changes in recent months regarding 1031 exchanges for ranches, so here are some resources of possible interest to you:

November 2018 IRS website update “Like-kind exchanges now limited to real property”. Here are some of the points from that update:

IR-2018-227, November 19, 2018
WASHINGTON — The Internal Revenue Service today reminded taxpayers that like-kind exchange tax treatment is now generally limited to exchanges of real property. The Tax Cuts and Jobs Act, passed in December 2017, made tax law changes that will affect virtually every business and individual in 2018 and the years ahead. 
Effective Jan. 1, 2018, exchanges of personal or intangible property such as machinery, equipment, vehicles, artwork, collectibles, patents, and other intellectual property generally do not qualify for nonrecognition of gain or loss as like-kind exchanges. However, certain exchanges of mutual ditch, reservoir or irrigation stock are still eligible.

March 2019 article in Forbes about 1031 exchanges (click here)

March 2019 article from TheStreet.com about 1031 exchanges (click here). Here is a snippet from that article:

Essentially, the steps for a 1031 exchange are:
Sell an investment property;
hand your capital gains to a qualified intermediary;
identify a like-kind property with 45 days;
negotiate with the seller of the like-kind property;
agree on a sales price;
have your intermediary wire the capital gains to the title holder or the title company;
fill out the IRS form.

Instructions for IRS form 8824, used in the 1031 like-kind exchanges. Click this link to see the rules.

From this article (click for the full article) here are some of the benefits to Texas ranch owners about 1031 exchanges:

A misconception held by some taxpayers concerns the types of property that qualify as like-kind. Some mistakenly believe they must exchange their farm or ranch for another farm or ranch. This is simply not true. The definition of like-kind property in real estate exchanges is very broad; qualifying replacement real property can be virtually any real property that will be held by the taxpayer for investment purposes or used in a trade or business. Bare land can be exchanged for an apartment complex, a rental vacation home, office or other commercial property or any other type of real property held for investment. The range of real property which will qualify for tax deferral opens many options for farmers and ranchers to diversify their investments and obtain cash flow without necessarily having to be involved in the management of the acquired replacement property. Since more than one property may be acquired in an exchange, taxpayers can expand their investments from one large parcel of land into multiple smaller properties in the same or different geographic locations.

Article About Jim Long

Jim’s company, Southwest Ranch & Farm Sales, is the first ranch broker to provide its content to this website. Just recently an article came out about Jim and his company.

Here is the link that article from TheArtOfLivingBeautifully.net: https://theartoflivingbeautifully.net/southwest-ranch/

From the article:

Southwest Ranch is located in McKinney, Texas. They specialize in listing and selling farms, cattle ranches, hunting, and recreational properties. My father joined the firm in 2000. He holds his brokerage license in Texas and Oklahoma, and now owns and operates the entire firm himself.
A ranch, I learned from him, is any piece of property that is larger than 30 acres. Currently, his largest listing is 7000 acres, and his smallest is 130 acres. Most cattle ranches will include a water source (such as a lake or pond), cattle working facilities, corrals, fences, barns, equipment sheds, and some even have homes on the property. Recreational ranches often include hunting lodges or deer stands. And farms typically don’t have any fences or improvements; good farms have high quality soil and land.

Many of Jim’s listings can be found on the respective County-specific pages found at this link: http://www.texasranchesforsale.org/texas-counties/