land lease to solar or wineries?

Question

recently I was approached by a guy asking if I would be interested in leasing my land to a developer to do a solar project so they can sell the power. I have done research on all of this and the pay is outstanding. Winery I'm not so sure. Anyone have experience in these areas? I am very interested in it if I can make that much money off this land. I don't know much about wineries but I would be interested in that as well since I live in a great area of California for it.

Account Closed · Answer

@Scott Ryan - Did anything ever come of this opportunity with solar farms? I realize this is a very old thread, but I am interested in hearing about your experience if you ended up going through with this.

Cj Raced · Answer

I am a CA attorney.  Many times, I tell people that they don't need an attorney to handle many minor issues.  HOWEVER, where estate planning/wills/trusts OR land is/are involved....ALWAYS CONSULT WITH AN ATTORNEY....and don't use the phone book....get recommendations from friends, a realtor, thevState Bar, Yelp.....something that at least gives you an idea of whose advice you will be relying on.   Lawyers and doctors are not infallible. we can make mistakes.   while, there is supposed to be Malpractice insurance available ...you just do not want to get involved in that mess ....so try to pick a good lawyer from the get go and a little bit Morey to get good advice is worth it.  remember, you get what you pay for.

If you can afford it, get a second opinion.  Ask if they have any clients who would be willing to talk to you about the attorney in question.   Then, call and tell the attorney (or secretary) in about 20 words or less why you want to come in for a meeting (eg.  I am thinking of leasing my land to a winery and want to ......have you look at their contract.....or ask you questions....or whatever.....and tell the atty. how Much time you want to buy (some Attys literally start a clock when you walk in.....ask what the charge would be ....or offer what is customary where you live....AND THEN SAY YOU WILL PAY CASH.   Sometimes lawyers win a case and then it gets appealed and they may not see any money on that case  for three years ....whereas they may have already spent $50,000.  We are just like you....who doesn't love cash customers?

When you go...be friendly...but be all business AND LISTEN AND TAKE NOTES.

THE more  you have told the lawyer about your situation BEFORE your meeting the better.  Chances ARE that he will have had time to research the issues.  Otherwise he/she may just be writing down questions and they say he will call you back later.

Offer to pay for their research time.  Ask for an estimate.  If they say "6 hours" is perfectly acceptable for you to say, "oh I only have enough to pay for an hour and a half research time ?.....what do you think you will be able to accomplish During that time?"   To avoid this, go to an expert (land use/business litigation)  who is experienced such that they will tell you that they don't  need any research time, but they already know the info you need.  you see, there you are benefiting from all the people that have paid before yo.  Or, you can try a younger lawyer who has a good reputation and mat be young and eager and willing to take less $ to get your business and that way I can.  During the process, ask how much time and $ things will cost.  If you just say, "do this and that..."  And you don't tell the lawyer the financial limitations you may have,  this is where our problems arise.   the lawyer feels like he put in a lot of time to help you out and  now you are ungrateful and unwilling to pay.   On the other hand, you may feel like the information was not worth that much money  and that the lawyer should have asked you before incurring such expenses .  note - the lawyer should ask  what her limitations on money are, but sometimes we forget and, after all, it's your money ....SO ASK.

When you do meet, have your questions written out and you can have two copies one for you and one for your lawyer and you can just hand them your questions and then write down the answers under each question let them just talk until they're done then go back and ask follow-up questions and remember every minute costs money so no chitchat .... If the lawyer starts telling war stories or just chitchatting it is perfectly acceptable for you to say (nicely) "excuse me! I just need to know ....are we still on the clock at this point? " and that will refocus the lawyer

For the gentleman who asked the question at the top it sounded like they were asking you to sign over your property before they paid you money ?  NEVER EVER EVER EVER EVER.... never sign over your property to anybody unless and until you have been paid IN FULL  for that property.   never sign over the rights to come onto your property, for ANY REASON,  until you have had a lawyer look at the document to make sure everything looks okay believe me it is better to spend 500 or $5000 compared to losing a 300,000 property and then having to pay a lawyer 5-20 times that amount to get the property back.  Ask other lawyers for referrals....we usually know the better attorneys....or we can find out.  Good luck and enjoy the vino! (dictated but not read or corrected for spelling and grammar.   For this, I apologize to all my past English teachers.)

Charles Colucci · Answer

While investing in solar will give a great profit as well as investing in winery is also very beneficial. You just try but first consult with the person who is previously done this real estate investing.

Scott Ryan · Answer

Solar is about 1000 to 2000 per acre per month for a land lease. I'm not sure if the grapes are per month or year per acre. Either way its pretty good. PG&E was just on the news talking about how they are spending billions trying to meet California's goal. Im finding it is a very complicated business on the solar side. I have contacted PG&E but there is a lot of information to sift through. And thats just their plan to pay for the power coming back onto their grid. So if you can finance a large project, hire a developer and get everything permitted, plus an investor for the 20% down or so on the project then its huge money. If you just lease the land to a developer its still huge money. Counties can become a problem fast though. It is much easier to protect yourself (your interests) if you already own the property. If its for sale (or not) and you don't have a contract with that developer, they can undercut you and buy it right under your nose legally, or do a land lease with the owner that is selling it. Im still learning as I'm going here but this is tough. Im in wine country outside of Folsom, Ca. I haven't found much about leasing land to a grape grower. I would be interested in hearing more. Maybe even an attorney with legal strategies for the real estate side.

Steve B. · Answer

Hi Scott,

I was about to post a question on the topic of leasing land to grape growers and found this post.  Not entirely sure how accurate it is, but I've heard you can earn anywhere from $5k to $15k per acre for grapes depending on location, condition, yield and I'm sure a whole host of other factors.  What are the economics of the lease to the solar company?

Reason why I'm interested is I have access to land that will not be developed (built upon) but I'd like to put it to agriculture use to get some return on it.  Have you found out how to go about this (specifically leasing land to a grape grower) through your research?

Where are you located at in California? (feel free to PM me)

Best,

Steve

Scott Ryan · Answer

because it's very complicated. I have signed letters of intent while this company finds developers. For example I want to find other properties that are much larger as its more cost effective for the developers. My issue is this company wants me to hand over these properties that are for sale and I don't control through a contract. That means this company can Hand over these properties to the developer and I'm left with nothing. I'm thinking about trying this all on my own is what I'm thinking about. That's why I am also interested in winery land even though I'm Sure it is less income it may be a decent return.

Jeremy Tillotson · Answer

if the numbers are great why are you asking and not signing?