Understanding Buying Western Ranches

by Dan Murphy - M4 Ranch Group, Broker/Owner

any of us dream of owning a western ranch, fishing on our own trout streams or

Mchasing elk across our own backyards. But in today’s world, most of those who are able to invest in ranch property have done so through hard work within a nonranching industry. As with any lucrative investment, the ability to recognize the potential in any asset and also conceive and execute a plan for transforming that potential into a valuable investment is the key to success. Similar to standard-fare housing, “fixer-upper” ranches can provide significant opportunity as investment vehicles, and understanding a few key components of personal aspirations and ranchland valuation can help kick-start a rewarding, ranchland restoration journey.

IDENTIFY YOUR GOALS AND VALUES

Before beginning your search for a ranch, clearly identify your motivation for wanting to purchase a ranch property. What does success mean to you, your family and your investment in becoming a ranch owner? SET YOUR PRIORITIES

Is it finding a long-term, secure investment, building a family legacy or getting back to life’s more simple and tangible moments? For many people, owning a western ranch means privately and exclusively relaxing on a covered deck enjoying peak views or fly-fishing for huge rainbow trout just off the back porch or hearing elk bugle in your own hay meadow. Or do your ranch ownership priorities lean toward productivity such as hay production, controlling senior water rights, producing an exceptional herd of cattle? Perhaps a ranch could serve as a business need for entertaining clients or as a recreational escape from the break-neck pace of the city? Similar to considerations when purchasing a home or a business, note your wants and needs for location and amenities. Rather than considering the strength of a particular school district or criminal activity within a particular area, a ranch purchase requires consideration of surrounding land elevations, seasonal temperature ranges, property access issues, and access to air travel/FBO’s, travel times for accessing shops, restaurants, medical care and community events. Would you prefer to own a ranch with high peaks or foothill terrain that overlooks rivers or streams? Establishing and noting this type of criteria will help you to pinpoint the geographic parts of the country that best fit your goals. Once you have a handle on your ranch goals, regional preferences and the surrounding property attributes that you value, you are ready to begin your search. Know, or work with someone who knows, how to optimize ranchland fundamentals.

RANCH WITH FISHERIES

If your ideal ranch property must have the potential to support a strong trout stream with a healthy trout population, focus your search on properties that provide as many raw attributes as possible. • Live Water - How much existing live water does the ranch control? Is the stream exclusively private or does it have public sections? • Water Quality - What is the “bug life”? Does the stream have healthy water to support fish? Will it grow big fish? • Instream Flows - How strong are stream flows during dry years? If you buy this ranch with fishing recreation as a priority, will that low flow support a strong healthy trout population during dry years? • Late Season Water Temperatures - Has the ranch historically seen high, late summer stream temperatures on dry years that could ultimately jeopardize your trout and your investment? • Upstream Users - Understand your water; how many times has the water in your stream come on and off irrigated ground above your fishery. Investigate whether or not the area’s water rights are truly first-come/first-serve. • Senior Water Rights - What is meant by “wet”? Many ranches have water rights on paper, but understanding the priority of the water right and timeframe-of-use relative to

water right decrees determines your ability to maintain or build enhancements on historic ranches. What are your water rights, how can they be used and are they wet? • Natural Terrain – One of the most important issues when considering a fishing ranch is whether or not the topography of the ranch could sustain a river enhancement project. Does the ranch have visible historic stream beds?

Can more “live” water be added by returning the live stream to historic stream beds that have been manipulated for pasture production? • Fall Rate – How much elevation does the stream drop from the start to finish? Does the drop allow you to move and manipulate that live water? Can you make it longer, slow it down, and build better habitat? • Material Availability –Does the ranch itself, the nearby areas, or adjoining regions have stone, trees, and raw materials that can be used for stream improvements? What does your trucking cost for materials look like? Explore the issues and attributes of any ranch property you would like to purchase relative to your motivation and goals for ranch ownership. Partnering with a team of experts who can assess ranchland functionality and potential can save you money, time and sanity in the long run. If you invest in building and nourishing the habitat, the fishing population will grow!

RANCH WITH HUNTING

If you define ranch quality by its wildlife populations and the health of its big game herds, your list of considerations would focus on wildlife attributes such as these: • Leverage Big Game Data – Each big game area of the west establishes game counts, game management and criteria for managing game. • What are the post-season herd estimates? • What is the ratio of bucks-to-does and bulls-to-cows? • What is the area management goal of herd compositions? • What are the historic hunter success rates? • What are the post-season counts on mature bucks and bulls? • Hunting Licenses – Having plenty of tags and nothing to hunt is not a good plan: What are the overall tag numbers offered in the area? If you are a ranch owner who prioritizes quality hunting, and have a vested interest in cultivating a quality big game herd, buying a ranch in an area with an abundance of big game tags in a poorly managed big game unit is not what you are looking for. • Land Owner Licenses – What type of land owner preference

does the state offer? Can the ranch apply for land owner licenses? Does the ranch give you the opportunity to hunt regularly in limited yet well managed areas? • Understand Your Neighbors – How big is your back yard?

Who else can easily play in it? To what extent—public or private—does the ranch back into public lands? Do those public lands provide the ranch owner with access to additional quality grounds with limited public access? • Topography – What type of terrain does the ranch offer, does the ranch have easier access quality hunting areas to take advantage of with young or ageing sportsmen? • Public Pressure – Where does it come from and how difficult is the access? • Pasture Mitigation – Does the terrain of the ranch enable dry land pasture enhancement? Do the natural and irrigated water and water rights lend themselves to pasture enhancements? If the ranch is the greenest thing in the area, animals will come! • Migration Patterns – Does the ranch have historic migration patterns? What seasons do those migrations come through or onto the ranch? Is the property contributing winter habitat? There are a multitude of ways a ranch owner can maximize a western ranch’s investment potential; the opportunities to enhance ranchland are limitless, depending on each ranch’s unique characteristics and your passions, interests and goals. Building both daily enjoyment and increasing property value comes in finding a ranch with good “bones”, located in an area that best suits your criteria. Much like building a thriving shopping center, remodeling a house, or investing in the right company, understanding your end goals relative to the ranch’s capabilities is critical to ensuring a positive ownership experience. M4 Ranch Group can help you locate and better understand these and many more considerations in identifying, buying and then building a plan for transforming the right ranch into a gem of a nest egg!

Steamboat, CO

Bull Run Ranch lives up to its name with outstanding elk herds and wildlife covering the 550± acres. Located in Steamboat Springs, Colorado, Bull Run Ranch sits in the Deer Creek Valley near the White River National Forest. Hunting is ideal on the ranch. Elk, mule deer, bears, and mountain lions call this area home. The property offers a log cabin, and privacy and seclusion; perfect for your quiet hunting getaway.

Represented the Buyer $1,200,000

Powderhorn, CO

Located on 52.6± acres, with 1,650± feet of exceptional fishing on Cebolla Creek, this ranch with 3-bedroom main home is an incredible opportunity to own a superior hunting and fishing lodge with over 80 years of history. The ranch is located in the coveted elk and mule deer hunting units 66 & 67, and fishing along the Cebolla Creek is known to be exceptional dry fly fishing for wild brown, rainbow, and brook trout. Well maintained log facilities include 14 guest cabins each with its own private bath, as well as staff accommodations, allowing you to host up to 30 guests. Conveniently located 45 minutes from Gunnison, guests can easily navigate via daily flights from Denver. Nestled into a valley with beautiful meadows and rock outcroppings, the ranch is secluded and private. Additional amenities include outdoor pool and hot tub, horse barn, and outbuildings. A wonderful piece of Colorado history, all in one package ready to be carried on for generations to come!

Represented the Seller and Buyer $1,200,000

Walsenburg, CO

Big Tree Ranch is an exceptional find in La Veta Colorado. Perfect for cattle, the 835± acre ranch offers privacy, improvements, access, water, and plenty of room for grazing. The main home on the ranch provides a beautiful, covered porch, perfect for enjoying views of the Sangre de Cristo Range. There is second home on the property as well as a large detached 2 car garage and shop. The ranch is fully fence and has a barn, stalls, loafing shed, and an outdoor arena. There is also an adjudicated stock water well.

Represented the Seller and Buyer $1,200,000

Powderhorn, CO

Enjoy luxury living in a stunning remote mountain location with plenty of room to play! A beautifully constructed log home sits on 160± acres complete with a private lake, surrounded by BLM and National Forest lands. The cabin’s well designed kitchen features a large range and island bar as well as the adjacent open dining and living areas. The lower level of the home is great for relaxing after a day of outdoor activities and has lots of extra sleeping space. On warm summer evenings, entertain on the spectacular wrap around porch, complete with stone grill and rotisserie. Seasonally accessible.

Represented the Seller and Buyer

Powderhorn, CO

This exquisite 240± acre ranch in the Powderhorn Valley boasts 13,000 foot plateaus which afford panoramic views of the San Juan, Elk and Sawatch ranges. Several hundred Trophy class Elk and Mule Deer roam the area, the back portion of which adjoins a very private section of BLM land. The front portion of the ranch is mainly hay meadow with big views into this Powderhorn Wilderness. It is planted with timothy, broam, clover and alfalfa. Historically the hay production is between 100 to 180 tons per year. Starlight Meadow Ranch is just what the name implies -- acres and acres of meadows lit by the stars so brightly that nighttime never really falls.

Represented the Seller and Buyer $995,000

BLACK MEADOWS H&D TRUST HOME IIN COLORADO SPRINGS LISTED BY MIKE LEBOUT $925,000 NEED LIST PRICE

Colorado Springs, CO

This exceptioanl custom home on one acre is a Colorado retreat. The home is in the highy desirable Walden Preserve, a quiet and peaceful neighborhood. Easy access to Colorado Springs, with serene views of the Colorado Mountains. This 4 bedroom, 3.5 bath home meets all needs. The luxury home has high end finishes throughout, High ceilings, Granite counter tops. Private and peaceful.

Represented the Buyer $995,000

Creede, CO

Rare opportunity to own acreage near Creede, Colorado! This ranch has a large portion of the property that boasts of breathtaking views of the Rio Grande River, as well as an approximately 4 acre pond/lake on the property that has historically held trout. Beautiful view of Bristol Head and the Eagle’s Nest. There is a resident herd of Bighorn Sheep that are commonly seen on the property and elk frequent the property as well. Electricity, water, and septic are in place at the hunting cabin.

$899,000

Represented the Seller and Buyer

Powderhorn, CO

River valley meadows may be the best way to explain the Lower Redwing Ranch. Nestled into the Cebolla Valley, with Cebolla Creek coursing through the lower 147± acers, the Lower Redwing Ranch is comprised of lush hay meadows, steep valley sides and a true historic cattle operation. A multitude of improvements from housing, historic cabins, hay pins, and loafing sheds complete the lower ranch package. Easy year around access off of Hwy 149, the ranch is located halfway between Gunnison and Lake City Colorado. Climbing 14,000-foot peaks, and fishing the state’s largest body of water, Blue Mesa Reservoir, are all just out your front door.

Represented the Seller and Buyer $849,000

Gunnison , CO

This exquisite 4 bedroom, 4 bath cabin located in Blue Mesa Estates is a true gem located in the heart of Colorado. Sitting on 10± acres with a private gated entrance, this 4,133± square foot home is full of luxurious amenities and borders public land. Stunning floor to ceiling windows in living area allow for spectacular views of the West Elk Mountain Range. A floor to ceiling fireplace sets as a beautiful centerpiece for warm family nights. The gourmet kitchen has center island and custom cabinets. Tongue and groove pine ceilings are found throughout the home, as well as beautiful slate and hardwood floors. The upstairs has a huge game room that overlooks the living area is accented by a custom wrought iron railing. There are three additional bedrooms located upstairs. The master bedroom is on the main level with impressive en-suite featuring jetted tub and slate shower. The master also has a custom wood-burning fireplace. There is a screened in porch off the dining/living area with trex decking and views of the Lake Fork of the Gunnison River. The property also includes a carport and 1,074± square foot three car garage. $875,000

Represented the Seller and Buyer

La Veta, CO

Access 4,000± acres of BLM and State lands. The Viejo Ranch, located in the exceptional Game Management Unit 861, known for trophy 380± class elk, making this ranch a true hunter’s sweet spot. The acreage holds a variety of terrain and has 3 springs creating an environment for many species of wildlife. Attached to the 360± acres is a 2± acre lot in the Paradise Acres Subdivision, with a community water system, covenants and HOA. You can choose to build your cabin there or choose a more remote spot on the ranch.

$685,000

Represented the Seller and Buyer