The “80-20 Rule” states that typically, 80 percent of business profits come from 20 percent of total efforts. This simple insight is the single most powerful of all money-making principles.
In ranching, 80 percent of total profits come from the capital appreciation of the asset. The idea that ranching can monetize the real estate asset investment is mistaken, but correct ranching can enhance asset value.
Physiologically, the “80-20 Rule” requires the pursuit of restorative ranching practices, which drive agricultural, wildlife, and habitat recovery. These results increase land value.
In terms of real estate, “Sell the sizzle, not the steak”. All improvements must add to the ‘romance’, since ranches are usually based on amenity use.
Anybody who owns a ranch and wishes to make money from the investment should be thinking about restorative ag and wildlife practices, and how to continually position their ranch as a potential real estate deal.
Here is the story of the largest ranch transaction ever consummated, driven largely by the health and ‘romance’ of the property.