Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago on . Most recent reply

User Stats

29
Posts
7
Votes
Luke Jackson
  • Rental Property Investor
  • Alexandria, MN
7
Votes |
29
Posts

Longterm Timberland Investing

Luke Jackson
  • Rental Property Investor
  • Alexandria, MN
Posted

Hey Everyone,

Does anyone on here invest in land strictly for timber production? I have a couple VRBOs and a hunting cabin in Northern Minnesota and am wondering if this would be a good passive income stream for an extremely long term (generations) buy and hold investment.

You can buy red pine stands (10-40 years old) for $1200-$1500 per acre. Very similar to what Potlatch does, although some loggers have told me they are hurting financial. Overall the current economics of it sucks and land values have declined, which may make it a good time to enter.

I understand that it would be capital intensive and it would not be a get rich quick scheme; but for me it would be very enjoyable being a miniature timber baron so to speak. I could lease out the land for hunting to cover taxes and misc. expenses. I think that to make it feasible you would have to have very little debt. 

Thanks,

Luke Jackson

Most Popular Reply

User Stats

184
Posts
122
Votes
Dan Vleck
  • Deerwood, MN
122
Votes |
184
Posts
Dan Vleck
  • Deerwood, MN
Replied

Have had timber land in my family for 43 years. Our land appreciation return is 5.6%. Harvesting for pulp and some hardwood and pine has covered all the taxes, but little beyond that. The red pine stands were Christmas tree size when purchased and require lots of thinning before there’s any return. Now the pine thinning provides marketable lumber. Maturity is still decades away. Once mature, the pines will be worth quite a bit. My dad bought the property and my son will likely reap the pine harvest.

We hunt the land, but otherwise I don’t recommend it as an investment in MN.  Other states have trees with more value. Our hardwood, oak and maple, etc, in MN doesn’t market as well as other states. I think it has to do with the winter.

Loading replies...