My Recommendations
Passive Income
Conservation Revenue
I would begin with my first choice by contacting various conservationists to inquire about your land. Be sure to mention the endangered species spotted.
Conservation Contacts:
Kern County Resource Conservation District: (661) 868-5400, www.kcrconservation.org - Provides technical and financial assistance for conservation projects, including habitat restoration, wildlife corridors, and sustainable agriculture practices.
California Department of Fish and Wildlife: (916) 445-0400, www.wildlife.ca.gov - Offers guidance on conservation planning, habitat restoration, and wildlife management for private lands.
Natural Resources Conservation Service (NRCS): (661) 868-5400, www.nrcs.usda.gov - Provides financial and technical assistance for conservation practices, including soil health, water quality, and wildlife habitat improvement.
Triple Net Lease
A triple net lease is a type of commercial lease agreement where the tenant is responsible for paying three main expenses in addition to the rent:
- Net
- The base rent paid by the tenant. I would set at 10% cap rate with a 20 year lease or 12% cap rate at 10 year lease.
- Taxes
- Property taxes, such as municipal taxes, school taxes, and other local taxes.
- Insurance
- Liability insurance, property insurance, and other types of insurance that protect the property.
The landlord is responsible for maintaining the property and making any necessary repairs. The tenant is responsible for paying all three expenses, which are typically calculated as a percentage of the annual rent. My plan would also provide any upgrades to the property adding to the lease amount at above specified cap rates. This Provides more opportunity for both parties involved to succeed and earn more.
how to lease your land
Large Farms Looking to Lease More Land
Taft Farm Supply: (661) 763-3333, www.taftfarmsupply.com - A farm supply store and equipment dealership that may have connections to local farmers looking to lease additional land.
Kern County Farm Bureau: (661) 868-5400, www.kernfarmbureau.org - A non-profit organization representing farmers and ranchers in Kern County, which may have member farmers looking to lease land.
Local Agricultural Cooperatives:
I would search online for cooperatives in your area, such as the Taft Valley Farmers Cooperative or Kern Valley Farmers Cooperative, which may have members looking to lease additional land.
Additional Resources:
Kern County Agricultural Commissioner: (661) 868-3200, www.kerncounty.com/agcomm - Provides information on agricultural land use, zoning, and regulations.
California FarmLink: (530) 756-5152, www.farmlink.org - A non-profit organization that connects farmers and ranchers with affordable land and financing options.
Other Posibilities & Revenue Estimates
Lease Price
Considering the property's value and amenities, a good lease price for a 40-acre property near Taft, California, could be:
- $2,500 - $3,500 per month for agricultural or ranching purposes
(Conservation or lease passive) - $3,000 - $5,000 per month for recreational or RV park use
(Keeps somebody employed on land) - $4,000 - $6,000 per month for commercial or industrial purposes
(Pole barn idea also employs someone)
Recommended Uses of the Land
Based on the property's location and amenities, here are some recommended uses:
Recreational: Developing an RV park or campground, which can capitalize on the property's RV hookups and scenic views.
Commercial: Building a warehouse or distribution center, which can take advantage of the property's proximity to highways and access to city utilities.
Agriculture: Growing crops such as almonds, grapes, or avocados, which are in high demand in California.
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