All Forum Posts by: Robert Freeborn

Great thoughts and a great thread here. 

@Jay Hinrichs Thank you for your thoughts on the timber. It makes sense what you were saying about the age of the trees and the price. I think this would be a long-term acquisition for me then, because it is certainly out of the short term feasibility. 

Thank you all for your feedback and thoughts!

Thanks for taking this and running with it Julie! 

Anyone have any thoughts or tips to share?

Read it. 

Hi BP!

I'm looking for advice on how to begin analyzing a land deal with a possible timber harvest. 

There are three separate, adjoining parcels for sale, totaling 303 acres in northern WA state for $2,500 an acre. The parcels have 20 year old alder re-growth timber.  There are two major sawmills about approximately 30-40 miles down the highway.

I've looked around, but I still have no clue about how to analyze this and see if this would be worth pursuing.

For those who have done deals like this, how did you find resources/contacts in the industry? Should I find a wood dealer/broker first? A Forestry Consultant?  Would it be better to the state university or a state forester?  Should I get the property under contract before I do so?  

I know I can google a forestry consultant, but I have no idea who is reputable, and what fees are reasonable for a consultation on potential property.

How would you go about analyzing and tackling this potential deal?

This has been the most useful article I've ready so far. For your consideration:

https://retipster.com/timber/

I look forward to good discussion and, hopefully, your thoughts and experience on the matter.

Out of what you have listed, I would go with option 4. 

However, you could also do variation of 2. I don't know your finances on your old home, but It seems like you could cashout refi to get your cash situation back where you are comfortable, and put someone in on a 6 month lease. It may make your cash flow negative in the mean time, but you could sell it later in the summer and, hopefully, get a better price and more offers for it.

Exactly. Just crunch the numbers on everything and go with what works best.

@Hardeep Singh If your tenant in the duplex leaves, you have turnover time where YOU have to pay the full mortgage/expenses. With a 4plex, you have 2 other units to take up the slack. Also, depending on where you are at, the cash flow can be MUCH better. But it all depends on the market.