Ponzi Scheme! Land Purchases in Canada!

[SASKFARMER3]

Is the new Ponzi Scheme land sales in Canada.
Just checked with fall land sales for our area and its funny. All sales have original investing firm sell now to another numbered company for slightly more money than purchase.
Over and over. Then a few young starters who are not aware of what is happening. No large Red Army sale as of 18Th of November.
So is it a ponzi scheme when you keep telling every one land is increasing in Value to drive the price up and find a sucker, sorry another investor to purchase the property from you at a higher price then move on to the next victims. Works till final idiot is left holding land that is worth basically productive value and the firm declares bankruptcy.
Funny some of these guys couldnt pay taxes for two years but turned property for a good dollar. Couldn't grow a crop for two years yet found a sucker.
Why in our area did the land companies purchase property try to rent it to a (sucker) Farmer and now the guy works for the land company because he couldn't make it.
This land value is getting to be a problem. really big problem
Simply process find sucker who wants to sell get real estate involved to try to coach the guy to sell they take a cut. Then try find a renter or get original farmer (sucker to rent his own land back). Find investors who know nothing about farming just let greed work and create a plan than investors want in and don't figure out that farm will never pay for itself unless another investing firm purchase it from you.
On and ON and On.

[SASKFARMER3]

Im starting to believe its exactly like a ponzi scheme. Keep bringing new people in to pay the ones who leave.
New one in area north of us is buying over 5 years with right of refusal at todays price if the price rises. Open for the investor to walk any time in 5 years. Farmers is prefered renter of the land back.
DAH can any one say idiot.

[pgluca]

It will end when the investors in the land companies see a lousy rate of return on the rentals and land prices stagnate because they are too high. Then maybe the share holders will pull out and you will see some sales at a loss, (hopefully).

[ajl]

Today's PRO is just a remimder why land in
western Canada is cheap. It needs to be.
We have more challenges than most other
regions. At least with the wheat board
gone one of the challenges will disappear.

[Wheatking]

So who here sold their land to an investment company, and now rents it back, or found an investment company to buy land for them so they could rent it. I just want to get some reasoning from someone who has been through the process, and what are the advantages to it.

There must be a few people who visit this site who have been through the process, that could give us their insights and thoughts on the matter.

[sumdumguy]

This is the problem with free money, wont be any
different than American housing market, yet the
governments dont get it. Then POOF!
FCC - use your frickin heads!
Get ready BTO - keep your cash and scoop it all
up.

[SASKFARMER3]

Its just funny that one land company sells for little higher to another land company. over and over.
So to me it seems like a ponzi scheme, find a investor to pay your first investors so they think they made a profit then get them to reinvest in another company so on and so on.
Land is land and Western Canada it the toughest place in the world to grow a crop. Short season and tough weather.

[wheatking16]

I believe it is a test of the Greater Fool Theory of
investing.

[sumdumguy]

Let them knock themselves out. It'll all come
down to ROE. Now how many guys are going to
pay the inflated cash rents? After other inputs
are reflected in bottom line it may dawn on them
that they are overpaying.

[SASKFARMER3]

Meeting with one of these so called land specialist yesterday.
Wow are they out to lunch.
All he could do is explain that Sask land is cheap compared to other places in the world. I explained did he farm. He said no but had a uncle who did.
Wow.
Any way the gist of the talk centered around China investors purchasing property and then how they intern flip it to other investors. I said what happens when the Renter cant pay for the land. Oh their are expert corporations who will rent the property.
I said are you sure you know what your talking about. How is a Corporation able to make a go of it when it freezes or drought for 5 years vs me a low cost producer.
HE still didn't get it that when no one rents the property they will try to farm it and finally the investors will get pst off and leave.
Its a Scam. Boys a big scam.

[sumdumguy]

Fools and their money!

[silverback]

You mean grain prices don't go up forever? Sometimes it doesn't rain? Sometimes it rains too much? Fertilizer sometimes goes up too? Frost in every month of the year, can't be!

It's supposed to be easy money. lol

[Klause]

We rented some off of investors... will see how it goes
in the future, we have a long term rental agreement...

Rent is low really, compared to what I've been hearing,
good for us I guess...

If you have long stable agreements, it's not bad
IMHO... save up $$$ and buy them out when the land
boom busts