All Forum Posts by: David Torbert

Sorry, I didn't see your longer reply about the auction type. I'm still trying to figure out how to reply to specific posts :-/ It sounds like there's probably not a large volume of timber on the property, based on your description. Hardwood timber values can be significant if the species, size and grade are there, but a large part of timber value is determined by the volume present. Logging companies have pretty high operating costs and usually require a certain amount of volume on a tract to make it worth moving equipment to the site. The local markets, distance to the mills and terrain also have an impact on stumpage (value the landowner receives after logging/hauling/administrative costs are removed) and those values can vary significantly in different markets. Your best bet on the timber value would be to talk to a local forester who is familiar with the area markets. Good luck on the auction, I hope you can grab it!

I hope it works out for you. It's always a little disconcerting when adjacent property goes up for sale, especially if it is undeveloped. Maybe you can get it for a good price. Is it an absolute auction?

Another thing. If you haven't already done so, talk to the owners before the auction and let them know of your interest in the property. They are probably contractually bound with the auction company to carry out the auction, but it would at least put you in the front of their mind if the property doesn't sell at auction.

The best advice I could give is to do your research beforehand and as with any RE investment, run the numbers beforehand and know exactly what you are willing to pay. Don't get caught up in the frenzy at auction day, or you may end up paying well above market value. You'll have to determine what it is worth to you. Since it is adjacent to your property, you might have to be willing to pay above "market value" to keep it. Check the records to determine if there are any liens or judgements against the property. Check the auctioneer's website to see what type auction it is. Find out if it is a reserve (minimum acceptable bid) auction or absolute (no minimum) auction. If it's an absolute auction, it will sell regardless of the high bid. It is possible that the real estate portion will have a minimum bid, and would not sell if that minimum isn't met, in which you might still be able to deal with the owners directly after the auction. Keep in mind that most auction companies add their percentage to the high bid, so you'll have to have that figured into your price. Most of the companies here in Ga charge 15% commissions/fees on personal property, which is added to the high bid. I would imagine the commission on land is lower, and might even be paid by the seller, but check the auctioneer's website or call them to be sure. You mentioned marketable timber on the property-how large is this tract? I don't know which style is best, as there will likely be multiple bidders there using each style. I personally prefer to bid on the "going twice" call if I'm still below my minimum. I've bought some nice guns and furniture pieces, but have never bid on real estate that way. Bottom line: know what you are willing to pay beforehand and stick to your plan.

Sorry for the spelling on your name Meredith, I didn't catch the auto correct!

Hi Rob and Meridith, Welcome to BP. I'm a commercial agent a couple hours away in Athens, and I'm also a newbie on BP (this is actually my second post). There is a lot of great info and a wealth of knowledge on here, so take advantage of it and enjoy the journey! Let me know if I can help in any way. David

Eric, This is a topic I've been interested in as well, so my first post on BP will be replying to your first post! I have a significant amount in 2 different IRAs, and have been thinking about diversifying by taking a portion and opening a self directed real estate IRA. Thanks to all those who have provided information. I've only been on BP for a couple of weeks and just upgraded to pro, but there is a ton of great info here! I will also check out the books mentioned on this thread.