I have had this idea in my head for a while and im curious to know if anyone has done it. does anyone buy raw land and grow trees or palms on it as an investment? i realize you would need to set it up as a nursery.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
17y
Tree farm? Like growing trees for sale to the landscape industry? I have a few friends who do this. It's more a business than real estate investment, but the RE angle can be leveraged.
Real Estate Investor · Henderson, TX · Member since 2008 · 35 posts · 15 votes
17y
Doug, I don't know your area, but here in East Texas, planting pine trees is common. A rough number I've been told is a $3000. per acre return. My 33 acres could yield $99,000. but it would take 20-30 years. I would think it could be one potential investment, but not a great one. What I've done is put three rent houses (2 stick, 1 DW mobile home) plus planting trees on maybe 20 acres. Hope this helps.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
17y
Don, can't you get state or national funds for putting your land in timber? TX A&M extenstion might have answers. Perhaps Christmas trees would pay faster?
Also I am curious; how much rent do you get on your rentals? I have considered investing out east of DFW off highways 80 and 175, but don't know rents or occupancy out your way.
Real Estate Investor · Henderson, TX · Member since 2008 · 35 posts · 15 votes
17y
Jon, the state will give you a hand, but there are always strings attached. You can get help on trees, ponds, and probably much more, but I prefer to keep the state as far away as possible.
I know a couple people that did the christmas trees, but they cut them all down , so the profit must have been too little.
I'm renting my houses for $600. mnth, There are some smaller towns west of me, Overton, Troup, etc. that I hear of rentals being in the $400. range, but they're also small 2/1 older homes or run down mobiles. It's hard to find a rental in Henderson for under $600. I think that price will be about normal or a little higher in Longview and Tyler.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
17y
Doug,
If it were me and I were in South Florida, I would grow an organic citrus orchard. With that you'd be talking about a high end consumable in a climate with year round harvest....
I explored a Christmas tree farm once,,there is about 10 times more work than they look like. Each tree has to be pruned and 'sheared' EVERY year or more. plus marketing is the big problem,,,putting a ad in the paper to come choose and cut will get you few buyers,,,people are too lazy to do that. you need a COMMERCIAL lot and man it 24/7 and there are already tons of those!! And what do you do with those that never sell??
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
I grew up farming corn, soybeans, and cattle. Some years back I started looking at strawberry farming. That's really what got me serious about real estate investing.
You're really talking about starting a farm.
Don't be afraid to use state resources. Most states, some universities and some counties have some pretty significant resources to help you understand what can be grown, what has a market and how you would do it.
In addition to information and assistance, states do sometimes have financial assistance. Certainly the feds do. You'd be foolish to neglect this, as all you competitors are using it to the fullest.
Farming is not for the feint hearted. Its part time only in the sense there are times of the year when there's not much to do. There are also times of the year when you will work from dawn to dusk every day. Its certainly not a plant something in the spring, come back in the fall and harvest it business. Or, plant now, come back in 10 years.
There's a lot that can go wrong. Too much water, too little, minerals, salt, disease, weather, conditions being too good and creating a glut, demand changes resulting in no market for your crop, no pickers, shipping costs too high, on and on. Like real estate investing, this is a business. Better learn the business before you jump in.
Richmond, VA · Member since 2009 · 9 posts · 0 votes
17y
I've sort of had the same Idea here in Va.
But mine goes more like this:
Start by going the duplex route, live in one rent the other.....build equity.....save.....buy another duplex....rent both sides out.....save......buy cheap land furthur out of the city with potential investment qualities and grow plants and trees out there for use in re-landscaping the rentals....maybe sell some off on the side.
I agree though there is a lot of work in farming and harvesting but you could probably make it work. Like Jon said, research is key. Good luck!
I KNEW there was some reason I liked you and your posts Jon!!! Your a man after my own heart!!
problem with most 'small' farms is you have to have enough VOLUME to make this all work,,,but that creates more work than you can do yourself,as Jon says!!
Its a vicious circle. Organic 'gardening' comes closest,,in HIGH population centers. BUT marketing is the key to ALL success.
Be prepared to work morning noon and night. marketing is about 90% of the 'work' AND theres plenty of those 10 % growing hours to go around!!!
ANYONE considering doing this better find a mentor,,,somebody doing it and 'intern' for a few years!!!(at least 1 or 2!!)
Real Estate Investor · marathon, OH · Member since 2008 · 33 posts · 1 vote
17y
I know nothing about this topic. However, for ROI purposes as well as environmental purposes, wouldn't it be a good common sense to grow Bamboos? *shrugs*