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18 Year Old Buys Investment Property With Hog Money

This article was written by in Real Estate and Home. 5 comments.


Lindsay Binegar, now nineteen years old, has been raising hogs on her family farm in Highland County, Ohio, since she was at least four years old. That was the age at which she showed her first hog and earned $100. Since that time, Lindsey entered hogs in competitions, saving every penny she earned from these shows.

Including her recent winnings at county fairs, Lindsay amassed $40,000 for her education. She is now a freshman at Ohio University’s Chillicothe campus. Her parents agreed to pay for her education if she continued living at home and commuting to school. This arrangement freed her $40,000 for a different investment.

As luck would have it, her father runs an auction service. Through an estate auction her father was handling, he was able to set his daughter up with four-bedroom, two-bathroom, two-story house for $40,000 in their town of Greenfield. According to quick research on Zillow, this is an amazing deal if the house doesn’t need too much work. She plans to rent the house to relatives and use the income $450 per month income to save up for a custom-built house for her and her fiancé.

My first reaction to hearing this news is that it’s a bad idea for someone young to invest a windfall in just one thing. As this is an income-producing property for her, and she had an opportunity to find a house most likely well below market value, it’s hard to find fault. Change just a few variables in the story, and the outcome could be different. If her parents couldn’t afford to send her to college, that saved money might have had to stay destined for her education. If her father weren’t the owner of an auction service, she might not have been exposed to a fantastic opportunity.

Nevertheless, these opportunities worked in her favor, and according to the story, she has made sensible decisions about money throughout her life. You can’t go wrong with buying a house with cash, though it’s best to do only if you’re not spending 100% of your net worth. A cash cushion or emergency fund would be the primary concern and investments for the future a close second.

Photo: The Pug Father
Frugal teen buys house with 4-H winnings, Kathy Lynn Gray, The Columbus Dispatch, May 17, 2010

Published or updated May 18, 2010. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 5 comments… read them below or add one }

avatar Yana

I love this story. I wish I had been smarter sooner ;)

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avatar Candide

Fiance? At age 19 as a college freshman? Good lord.

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avatar steveDH

A true “Head-Start” story. Spending your entire net worth at nineteen is no big deal, I think I did it a couple times while in school. However spending it on income generating property and looking to the future ……….. super. You go girl!!!

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avatar Aaron @ Clarifinancial

Them’s some fancy hogs (as they might say in my neck of the woods). I think she’s smart for buying a house that would be an investment, instead of one she would occupy. Not only was the house depreciated because it was on auction, but she also bought it after prices slumped. From a value perspective, this is ideal. At first, I was quick to grab a calculator and hack out a rough 13.5% return on her money annually, but that’s the gross income rate. It does not include repairs, maintenance, taxes, occupancy rates, or appreciation. Her real rate of return will probably be something less than that, but it should still beat the pants off what she can get on a primary mortgage. Not bad for 19.

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avatar Ryan @ Planting Dollars

Sounds like a bit of hard work, luck, and smart decisions all rolled into one. I’m not so sure I would’ve payed all cash for the house, but maybe took out a mortgage for even half of the property and kept some cash as a backup to pay for any upcoming or unforeseen expenses. Buying real estate via cash is also a great way to lower the rate of return on your dollar so she could be doing more with her money. Either way, she’s off to a great start.

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