The founder of a $100 million investment fund that wants to buy and restore ranch land in Texas, with hunting and fishing habitat in mind, expects to buy land at a substantial discount soon. “The timing couldn’t be more perfect,” Jay Ellis told the New York Times. Oil prices are tumbling and in Texas, that means land values will slide, too. “In Texas, where wealth is measured not in dollars but in acres, land prices have for decades followed the price of oil,” says the Times. Land prices doubled in a decade, helped by strong oil prices. Now, Ellis believes he can buy “trophy ranchers” at 75 percent of recent values. “The fund will offer sellers a quick close — 30 to 60 days — and spare them the indignity of listing their ranch at a reduced price. Investors will have access to hunting and fishing on fund-owned ranch properties during the holding period” says the Times.
Some analysts said the Texas economy is more diversified than during the early oil-boom days so there is more of a cushion on land values.