All Forum Posts by: Dan Scarborough

I've done a deal in NW Ga similar to what you've described and am interested in partnering with you on this property.... I won't do deals "sight unseen" but will make the 2-hour trip to the property if you contact me... I can't figure out how to respond through BiggerPockets.

I've been following this conversation with great interest but I've seen no mention of today's national economy.

What impact will developing changes have to buyers of rural property, developed as well as large acreage with maybe small farm buildings or a single home?

I would be more concerned about clean title in this scenario than seeking to utilize a self-directed IRA... and am surprised that this issue was not first addressed by other respondents... for example, a defaulted mortgage based on "assignments" created by MERS "Vice Presidents" litter land records in every courthouse in America. These questionable assignments have been used by bad actors like Ocwen to wrongfully foreclose on naive homeowners. These titles are "clouded" and should should never be considered for investments inside or outside of qualified retirement plans or public pension vehicles.

I'm 73.  I don't plan to replant timber that takes decades to grow. Repairing the clear cut and preparing the land for row crops that can be harvested one or more times a year makes more sense to me.

What makes even more sense to me is to "grow farmers" and to "cultivate entrepreneurs" like I and other missionaries to Haiti have already done.  Because that nation is so corrupt, and 90%+ of the economy is tied directly to Haitian Voodoo, "regular wage-paying jobs are virtually non-existent.

Training members of churches to become profitable entrepreneurs who run their businesses by practicing Bible-based principles who can support their families, and later hire relatives or friends, makes for good citizens and builds local communities.   

In one village of 800 people and their (former) voodoo witch-doctor, we've built a school, a community meeting building, a church building, and financed the salaries of a principal and eight teachers teaching 300 village children... All with the profits of 3 small broiler houses we trained farmers to build and manage over a seven year period.

I see no reason a similar venture can't be done here in the states on 3 times the land.

I hope to offer local congregations in my county, the opportunity to invest capital and/or to barter labor or services as "partners" who want to come alongside single women and children.

"Making money" is highly to be desired, but making a significant difference in the lives of families and developing local communities promotes freedom and love for one's neighbors. This kind of "good work" can provide multiple, on-going "dividends", streams of inc ome, and many other intangible rewards.

It also develops relationships that "earn" the privilege of sharing the Truth Who "draws me" and Who compels me to be a Servant and Friend to everyone who seeks answers for the unanswered questions that frustrate them.

"Life", and that abundantly, is personally obtainable, not just something the "world" says someone should "get".

I'm just a small land owner. We did this with a 27 acre tract of land an absentee owner allowed to "go natural" for 40+ years.  I plan to "fix and flip" other "ugly" 50-100 acre properties" with harvestable timber to get cash to build out my property as a "mini-farm" ministry.

A small building and 3-5, 3 acre "rental/farmer incubator plots, growing organic row crops for sale to northwest Georgia restaurants.

My "share-croppers" may end up being single moms needing a secure location for themselves and children.  

I hope to find a few "lady vets" who want to start farming, but know how to secure and protect perimeters.  The land lies in such manner the property can not be seen from the nearest roads. 

As my "tenants" learn how to profitably support their families, we'll help them acquire larger, distant, farmland they can own and manage on a "fee simple" basis.

"Will they take care of the majority of the locating and appraisal of the property or do I still need to find the loggers, transporters, and milling companies..Is there a one-stop shop anywhere?"

Locate a reputable forestry/timber consultant. They will cruise the property, appraise the value of different grades of standing timber and give you an estimate of what the bidding will provide. They will organize an auction and present the potential bidders with the details of the stand of timber.  They will cordon off trees you do not want harvested.  They know those in the market who are buying, the equipment they have to use, and know by experience who will harvest the timber with the least harm to your land. They will conduct the auction on your behalf (you are their client, not the buyers').  They will advise you as to whether or not to take the highest bid based on their knowledge of past auctions and the harvesting results of that buyer. They will oversee/supervise the actual harvesting.  They will negotiate the closing details  ( e.g. Provide you with a net check at closing while requiring a "harvest by date"...otherwise you keep your money and reclaim your selling rights for later.  For all of this they typically charge a 10% fee based on your net check.  You don't normally get milled lumber... that happens and acrues to the benefit of whoever buys your timber. You could ask your consultant to negotiate specific finished hardwood to "finish out" the "family lodge" you intend to build with your "net proceeds check"... but most folks ask the consultant to replant your next 15-20 year timber investment... Along with the proper timber management  for the coming decades.

in 2015 or 2016, I did a search to find out how farmland fared compared to Residential Properties during the financial crisis. If I remember correctly, Residential Properties as a whole dropped around 50%. Farmland on the other hand, dropped only about 30%. My interest is not when a new recession will take place, but positioning myself to take advantage of the corresponding drop in Farmland values. Are there any other posters to this blog  that are thinking the same way I am?

I'd gladly read your blog.

I still don't know how to communicate directly except through this Bigger Pockets blog... and evidently their rules prohibit sharing contact info.

That makes no sense to me in that the readers of Bigger Pockets are real estate investors... 

One to one communication is a necessity, not a luxury!

David,

I'm very interested... in farmland in NW Georgia. Have 28 acres in Polk county just adjacent to Floyd county, off Booger Holler Rd.

Interested in Cave Springs area and other potential farmland in Bartow, Floyd, Gordon, counties.

I'd like to talk to you but have never figured out the best ways to communicate on this biggerpockets.com site.

Dan Scarborough 

My 95 years-old mother has owned some farmland for many years. Recently I prevailed on her to get a new survey.

The survey showed that an adjacent landowner had encroached over our property with their field.

That was bad enough because had we not found that out, we could have left ourselves exposed to an adverse possession action.

Worse, though, was the fact that someone had created a "baited plot" to hunt deer on the portion of our property where the encroachment was taking place.

Had we not addressed the issue with a letter of notice to the adjacent land owner and dealt with the baited plot, we could have easily run afoul of wildlife protection laws.

Another issue is making sure that a complete site assessment be done.  It's not unusual for the dumping of barrels of toxic chemicals is done on remote farm and timberland.  

Don't buy an EPA site remediation action when you buy your farmland.