Potential property deal with ready to cut timber

4 Replies

I've been studying and investing for more than a year now, and have 2 buy and hold properties in my portfolio. I've also had some success with wholesale deals in my local area in Baton Rouge, LA. I have 2 potential deals on the horizon that are over the state line in Mississippi. 

I have 2 questions that led me to start this discussion:

1. Can anyone recommend an investor friendly title company / attorney that has offices near the Natchez area?

2. I have much to learn about property with ready to cut timber. My thought would be that after I have closed on the property, I can work with a local timber company to have a portion of the property harvested to offset the closing costs and get some liquidity / equity.

Any advice would be appreciated.

Thanks & God bless,

Eric

do you have any family members in MS, i was raised in jackson, but i reside in the redstick currently, if you need help in that area i could reach out to someone that maybe of use to you, worst case scenario just jump in your vehicle and burn up I-55, the commute maybe beneficial to do the deal in-person, good luck, keep posting but most of all keep sharing, question#2 looks promising caught my attention really look into that? 

Realize that most of the value in that type of land in MS, is the timber itself.....it's not just a bonus.  Timbering the entire property would of course greatly reduce the value of the property.

Hey Eric,

Were you able to get any good info on these deals?  I have a good deal of knowledge in timber valuation.  

@Eric Evans

I don't know if you are still looking at timber land but there are several things to consider. 

1. Is the timber hardwood (oak, hickory, etc) or soft wood (pine)? Prices are different between different hard and soft species. 

2. Is the standing timber native growth or plantation planting? You will get more tons per acre from plantation planting (uniform rows of one species) than native growth (random growth of multiple species). 

3. How old is the timber? Different species mature at different rates. Example: Pine goes through 3 thinning/cuttings - 7 year thinning (basically no money), 18-21 year thinning (pulp wood that will provide some income) & 27-32 cutting (saw lumber that provides most timber income).

Check with a forester that works in the area. They can give you the current value, arrange and supervise a timber harvest for a % of the total proceeds. 


Remember to set aside some of the proceeds to replant. Most timber land is valued solely for the timber on it. If you harvest the timber you need to replant.

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