Belize Teak Plantation

Commercial Real Estate Investing
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Belize Teak Plantation

Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes

Actually started this venture about 3 years ago.  I might get some activities out of time sequence.  Sit back and grab some popcorn.

I will chop this up into smaller segments, so each one isn't too long of a read and has a central theme.

Both Retiring and doing Self Storage, we hit the mark where we both had the funding and the time to invest overseas.  My wife has never had a specific place in mind, so got to do my choice.  Have always been interested in Aust, NZ, Brazil, India and Belize.  Have travelled to South Korea, Mexico, France, Canada, Maui and Italy. 

Decided on Belize.  Currency pegged $2BZD to $1USD (low inflation issues), Official language is English since it was a British Commonwealth, Property rights and laws are basically the same as the US since English based, 2nd/3rd world thus still Rough which I like (has flavor), 2 hour flight from Houston/Dallas connections, land is relatively inexpensive. These all play into the "type" of investment we wanted to do.

We are in Iowa where December thru March can be cold and windy.  Belize dry season (less humidity) is January thru May.  Great overlap.

Labor for a great skilled worker is about BZD $30 to $50 per day or USD $15 to $25.  Laborer is around USD $25 per day.  This is good pay for them.  Glad to have the work.  They also have an illegal migrant issue.  You could get workers for USD $3 per day to cut brush.

Local produce is relatively cheap.  Rock crab for USD $3 per pound.  Red Snapper, grouper, barracuda for USD $4 per pound.  Anything imported is really expensive.  Gas $10 per gallon.  Can of Spam might be $8.  Yep a Can of Spam can cost more than Rock Crab or Red Snapper.  I actually like Spam though.

Health care is both very inexpensive and for higher end issues, non-existent.  Most US prescription drugs can be bought over the counter from the Pharmacist.  Broken leg $50.  Cancer/heart need to fly home.

Over the course of this post will cover the following Real Estate angles.  Teak, buying property, building house, few buyers, real estate "fronts", preppers, as an Expat "you" will move back at some point, and "Yes" sometimes means "I don't know".

Below is Ramon, checking on Teak trees.  These are 11 months since transplanted, from about 10 inches tall.

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Account Closed
Investor · TX · Member since 2018 · 38 posts · 28 votes
2y

Fascinating! Lots of "wild west" (pirates of the Caribbean?) to this post. You are very brave for doing this, but it sounds like a rewarding adventure! And you seem to have learned a lot. Thanks for sharing with all of us.

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  • Jerry V.
    Contractor · Richardson, TX · Member since 2022 · 265 posts · 146 votes
    2y

    Henry, I don't usually read through a lengthy story but, glad I did! lol

    Guess the past pics are too old and they don't show but, thanks for posting progress of it all. Most of us don't think to "diversify" in other fields or arenas, much less in a foreign country!  Belize is known for it's Banking and Offshore capabilities but, like most places that are "$ havens" the regular population is usually very poor. (not bad people or culture, the wealth just isn't shared is all)

    Looking forward to the continued progression!

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y
    Quote from @Jerry V.:

    Henry, I don't usually read through a lengthy story but, glad I did! lol

    Guess the past pics are too old and they don't show but, thanks for posting progress of it all. Most of us don't think to "diversify" in other fields or arenas, much less in a foreign country!  Belize is known for it's Banking and Offshore capabilities but, like most places that are "$ havens" the regular population is usually very poor. (not bad people or culture, the wealth just isn't shared is all)

    Looking forward to the continued progression!


    lots of fun. Solar eclipse was near to see down there. 

    2Reply
  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Went down first week in February.  Caretakers house moving along.  Putting roof on.  Will be an open air rooftop.  
    House ended up being 1,800 sq ft.  Wonder if this scheme would look great at a lake front or along a river.  Going down first week in March.  Pick out tiles, order windows, pick out granite for kitchen and tables.  Put a sidewalk.  Also a covered porch on the front.  Guys get a bonus when they are done so we are moving along.  

    Sandy our managers wife made a cake so we could celebrate valentines while there.  
    .     
    Can’t wait to see another sunset down there. 

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Managers roof got finished.  They can't wait to hang the hammocks.  More breeze and no bugs up there.

    Think they are trying to decide what is for lunch.  Jayden still is growing, snake is 6 foot.

    Next week is electrical, painting inside/outside, pour sidewalk and porch.  For the inside paint we add a Mold preventer to the paint.  Easy way to just be done with any mold issues on the walls.

    Our managers brother used to put up metal roofs and buildings.  Paid him separate $4,000 USD.  Had quotes for $20,000 not including materials. 

    Most materials in Belize cost the same or higher due to import tariffs.  The cinderblocks are made there, so they are inexpensive. All of the metal for the metal roof, is imported as coils for the roof and flat metal for the beams/rafters and purloins.  They then use their roll formers to form and cut the roof sheet steel and to also form the beams, rafters and purloins.  This way they are importing lower cost material and paying lower tariffs.  Plus, since they can cut and paint to size, shipping costs is less, and they stock way less material on hand.

    Imported treated pine lumber is astronomical since their pines trees were wiped out by the pine beetle and they also don't have a coating/impregnation process for the raw timber. For termites, has to be treated lumber. Metal is competitive with lumber construction cost.

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Moving along.  Laying floor tile.  Just have two small rooms to finish, grout and cut tile pieces for edges.  

    Minimum wage is $2.50 USD.  We pay ours $3.50 USD.  Tile cost is about the same as the US.  

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Exterior doors installed. Put temporary lock.  Will install two locks per door. Both deadbolt.  These are both mahogany wood. $3.50 USD per board foot.  Local product is cheap since no import tariff.  

    Now that we have tile in kitchen and bathroom.  The furniture guys will build and install mahogany counters and cabinets.  

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Built porch floor, wheelchair ramp for the future maybe.   Will cover porch later during the rainy season.  We are in the dry season and doing a lot of tree trimming and thinning while it is dry.  

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Windows should be installed this week. About $5,000 usd for 1600 sq ft house.  12 large windows installed.  Double panes.  Metal frames. 

    Handrails for balcony waiting on quotes.  

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    It’s fun in a new country learning the way things are, the food and plants and especially the artistry.  

    Bought this butterfly coffee table and had a second one made.  I saw this originally at a hardware store. Asked them about it.  Said it was for sale but didn’t have any contact information for them.  Took me a year to find who it was.  They repolished this one and made another matching one. $250 usd each. Fun running into something I would have never thought of.  In the lookout for paintings, slate carvings, furniture, etc with local tint to them for our house there. 

    2Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    2y
    Quote from @Henry Clark:

    Managers roof got finished.  They can't wait to hang the hammocks.  More breeze and no bugs up there.

    Think they are trying to decide what is for lunch.  Jayden still is growing, snake is 6 foot.

    Next week is electrical, painting inside/outside, pour sidewalk and porch.  For the inside paint we add a Mold preventer to the paint.  Easy way to just be done with any mold issues on the walls.

    Our managers brother used to put up metal roofs and buildings.  Paid him separate $4,000 USD.  Had quotes for $20,000 not including materials. 

    Most materials in Belize cost the same or higher due to import tariffs.  The cinderblocks are made there, so they are inexpensive. All of the metal for the metal roof, is imported as coils for the roof and flat metal for the beams/rafters and purloins.  They then use their roll formers to form and cut the roof sheet steel and to also form the beams, rafters and purloins.  This way they are importing lower cost material and paying lower tariffs.  Plus, since they can cut and paint to size, shipping costs is less, and they stock way less material on hand.

    Imported treated pine lumber is astronomical since their pines trees were wiped out by the pine beetle and they also don't have a coating/impregnation process for the raw timber. For termites, has to be treated lumber. Metal is competitive with lumber construction cost.

     When it rains or hails a metal roof that's is open to the living area is extremely loud. Sounds like a million loud bangs.

    You might want to think about having it mounted over plywood with something between the plywood and the metal to cut the noise.

    I have not looked into it how to accomplish that, but you might want to.

    Our family had a summer home that had an open metal roof over part of the patio, and when it rained everyone was uncomfortable with the noise level.

    It has since been replaced with a regular shingled roof because of the noise.

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Thanks for suggestion.  Our house down there is the same way, with a metal roof, open air, then a concrete floor or roof above our 2nd floor living quarters.  It is very quiet from the outside even in the middle of a storm.  Think it is the concrete walls top, sides and bottom.  Deadens the sound.  We had a hurricane come through a year ago and our caretakers stayed in our house.  They said it was very quiet inside with 40 to 60 mph winds.  

    The down sides to an all concrete house is temperature retention good or bad.  Luckily we have big trees around us, so the sun is not on our house all day.  When we first get down there it takes about a day for the air conditioner to cool the inside down.  Once the concrete absorbs the cooler temperature, it stays very comfortable.  Would really have to think about a full concrete house, if we didn't have large trees, balcony or porches to shade the house.

    2Reply
  • Account Closed
    Investor · TX · Member since 2018 · 38 posts · 28 votes
    2y

    Fascinating! Lots of "wild west" (pirates of the Caribbean?) to this post. You are very brave for doing this, but it sounds like a rewarding adventure! And you seem to have learned a lot. Thanks for sharing with all of us.

    2Reply
  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Investment still moving forward.  Finished planting 3,000 seedlings.   Need to order 30,000 more for next year to plant in June.  Have 89 acres we are in the process of buying.  

    It’s different down here.  Belize has the most government land per capita than anywhere in Central and South America.  As your a good citizen and known politically you can ask for land to lease.  Currently 25 acres.  Used to be 50 to 100 acres.  The 89 acres is leased land.  This is only for Belize citizens.  The lease cost is about $100 usd for the last 5 years total.  Most people are poor and can’t both develop the land and convert to buying the land from the government.  Working with the family to pay the lease.  Buy the land.  Then we will buy the land.  This might or might not happen.  Pretty loose deal.  But if it works out the price is extremely low.  

    Down for 7 days.  About 5 days will be rain.  

    Bridge is flooded out.  About a mile across. Can get around but takes about 40 minutes.  

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    We were in Spain for 3 weeks about 2 weeks ago.  Traveled around. 

    There is opportunity there also.  Main question in other countries is ownership and taxes.  Plus financing in another market.  Part of the fun and risk in different markets.  

    Small world. A friend of my wife’s brother in Maui has a 5th generation cork and cattle farm near Gibraltar, Spain.  

    1Reply
  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Storm Sara went thru.  Lots of flooding and rain.  Our house is the green roof in the middle of the green forest.  Actually pretty safe, another 20 foot higher than this flood stage.  Plus the house is all concrete and 3 stories.  Easy to clean and safe. 

    Was working thru the numbers with our caretaker and teak plantation foreman. He is wanting to plant some teak. Using a 25 acre partial which is a lease size the government would give him land for.  It would take $42,000 USD to clear and plant the seedlings.  Does not include upkeep which is minimal after year 3.  That does not include land.  Say $2,000 per acre.  

    Divide by 25 acres plus the land cost.  $3,680 per acre up front investment.  I’m going to take the $2,000 for the land out since you will still own the land.  So $1,680 investment.  Let’s say I invested in another investment which doubled every 7 years. Using a 21 year life to maturity for the Teak.  An alternative investment would be a doubling every 7 years.  $13,440 value to compare against.

    The teak would be 60 trees at the end of 21 years per acre.  At 200 board foot per tree.  Or 12,000 board feet per acre.  Using $1 USD per board foot for the standing tree that would be $12,000.  Each value add step in lumber is a doubling impact.  If we “Logged” the trees they are worth $24,000.  Rough cut lumber they are $48,000.  Kiln dry and plane worth $96,000.  Retail sale $192,000 which we don’t want to do.  

    So to be comparable to other investments we have to sale at Standing timber stage.  

    Another option you will see online are companies selling shares to sections or lots of trees via a tree plantation management company.  As that company you’re making the profit up front versus waiting 21 years and can invest in other projects.  

    In houses, MFH and other REI you're looking at Cashflow or appreciation strategies. Teak REI is more about appreciation and value add versus cash flow which is primarily negative until the harvest period.

    Are teak plantations a good investment? Just another type of REI investment. If we do a Self Storage development we expect a 400% COC return. The Self Storage is the obvious better strategy. The Teak plantation is about diversification and a fun secondary strategy.

    Living in Iowa how could we pick our own papaya?

    Plus Self storage is a heavy positive cash flow investment while Teak farms are negative cash flow so they offset.  

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Been moving along with this project.  We finally made it across all locations and completed both trimming and thinning trees.  We used 20 foot ladders to trim low limbs.  I want to trim up to 30 feet so we can get at least three 8 foot logs that will grade A quality.  If we leave the limbs then the logs will be B or C quality and 1/2 the price.  Since the 20 foot ladder is "leaned" against the tree, it only goes up about 17 feet.  Plus say another 4 feet with the person standing.  Buying a used Skylift which should be delivered from the US to Belize in January.  This can reach up to around 38 feet with around 10 foot side movement.  With the person in the basket, we should reach 30 foot around and hopefully be able to do 2 or 3 trees at each stop.   Cost used is $25,000.  But if we can trim higher by another 10 feet and get one more "A" quality log across all of the trees, that will add about another $2mm of value.  Will use our 4 wheel drive tractor to pull between the tree rows.

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Started this investment mainly as a weather change from Iowa in the winter.  This week supposed to be 15 highs and 0 lows.  But always needed to do a money deal.  As world economics and geo politics have become more of a constant, this Teak investment will serve for diversification in asset class, maturity- since you don't have to harvest, currency arbitrage since main customers are China/India/Europe.  Although this is a long term investment and not in the main stream, it has added a certain level of comfort knowing the above potential investment risks are to a degree reduced.

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Adding another 89 acres next to one of our existing Teak properties.  Just got back today from a trip down there.  This was “Government Leased” ground.  We helped the people pay the lease which they hadn’t paid for several years.  No money.   Helped them buy the land from the Government.  Contracted to buy the land and made downpayment.  Once title goes through with our name will pay them the balance.  They don’t have title companies who hold the cash. Already cleared about 60 acres.   Will plant in a month to Teak trees.  Paid $1,000; worth $3,000.  Buying thru a leased property is very risky.  Also took about a year to get thru.  Very long bureaucracy process.

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Had a great trip down. The guys heard some squawking behind the managers house. Snake was trying to get two parrots.  Saved the parrots.  Will raise them for about a month.  Then they will be able to fly away.   Already fairly grown.  Did this two years ago with a younger parrot who fell out of the next flew away once it got feathered out.  

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Some of the ground is too rocky for the tractor to disc and then plow rows.  So, we are using our skid steer with a stump spade to dig holes.  The guys can do it, but takes about 5 minutes with a pick and we will have about 3,000 holes to dig.  Even though labor is cheap, sometimes equipment is cheaper.

    This ground with the "limestone" rocks will actually be better soil for the Teak trees versus straight Black soil.  The limestone frees up minerals in the ground so the trees can absorb better, and they grow quicker.  Their roots will break through the rock to find nutrients.

    Once we get the seedlings planted (about $30,000 to prep, seedlings and plant), the property value will double in the first year.  Got to love Value Add approaches.

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Mark our plantation manager checking in the teak seedlings we ordered from a local Mennonite group.  We ordered 25,000.   435 per acre.  That will cover about 60 of the new 89 acres.  Will see how it goes and order the rest for next year.  Cost about $.85 USD per seedling.  Actually all 25,000 should be planted at our farm already.  They had trouble getting the seeds ordered and thru customs.  They are now about 2 inches.   Will be another month before they are 8 to 12 inches and ready to plant. Trying to catch the rainy season by the end of November.  We have planted as late as November before but it is taking a chance. 

    I have discussed before the finance end of this.   We could make more money doing our Real Estate and even other investments.  This is spreading the risk.   Plus it adds value as it grows and also increases with inflation.  More importantly you don’t have to harvest if the market or the economy is bad.  It will just keep adding value. 

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Made it back last night from Belize checking on the 89 acres we are clearing and the Teak seedling.  Had my Uncle and Aunt come with us.  This is actually the first time we ever took time off to go to the ocean and relax.  Glad it was Tax deductible.  Another virtue of overseas investing. 

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    Most Mayan monuments people are aware or are the large pyramids.  There are currently about 330,000 people in Belize.  At one time there were 3,300,000 Mayans living there.  There are lots of small Mayan "monuments" what people call them all over.  On our land we found a cylindrical hole in the ground.  It is natural, but looks unnatural since it is about 30 feet deep and a cylinder shape.  Looks like tunnels going to two opposite sides.  Next trip is in 3 weeks.  If you don't see any further posts from me after that trip, you will know it was a bad idea to go down into the cave.  

    1Reply
  • John Quinn
    Member since 2025 · 1 post · 0 votes
    11mo

    Your trees won’t be harvested for 20 years . Are you confident of a market for teak in 20 years time . 
    thanks 

    John 

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    • Henry ClarkPro Member
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      Developer · Member since 2020 · 4k+ posts · 4k+ votes
      11mo
      Quote from @John Quinn:

      Your trees won’t be harvested for 20 years . Are you confident of a market for teak in 20 years time . 
      thanks 

      John 

      Are you talking from experience?  

      12 inch seedling is 4 to 5 foot in 5 months.  8 to 12 feet in a year.  15 to 25 foot in year 2.  30 to 40 foot by year 3.  We are shooting for 200 board feet per tree by year 21.  That’s 3 good logs, not counting the rough logs above that.  We plant on a 10 x 10 grid which is 435 seedlings per acre.  We both Thin and trim to get top quality logs.  We will end up with 60 trees per acre.  More food faster growth.  More thinning and trimming higher quality.

      A banana I would be worried about a market tomorrow.  It goes bad very quickly.

      A teak tree doesn’t have to be harvested for years.  You can bypass world economics and annual price issues.  They keep growing in value.

      Can someone read the future?  In Teak you can.  Number of people and their wealth is increasing in countries that use Teak.  Teak inventory in old forests and planted plantations can’t keep up with demand.  Even if you doubled the planting rate of Teak for the whole world you can’t keep up with the current demand let alone the future.

      Another week of planting and we will be done for the year.

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  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4mo

    Between the teak seedlings we planted Pepitos.  Pumpkins used just for the seeds.  This also helps to shade the ground for weeds and to hold moisture during the dry season.  The guys just picked 4 pickup loads.  They will save 20 of the best for seed.  To plant in middle of June.  The rest they will take or sell.  For them could be around $1,500 USD.  They make on average $3 USD per hour which is normal there.  

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