All Forum Posts by: Gabriel Ferrin

@Jay Hinrichs based on your advice I started looking at google maps in south western Oregon, and I noticed a large amount of clear cut acreage. Seems like logging is definitely profitable there. 

But I was wondering, what happens afterwards. Do you have any idea what these people or companies do with the land after they clear cut a forest? Is it possible to buy that land at a steep discount? 

Wow thanks @Jay Hinrichs, that's incredibly helpful. Great story. It's sounds to me like you think the best opportunities are in the pacific north west. Is that based on your expertise in that area or did you choose that area because you think it's the only place to make money?

I looked at Oregon a bit (currently doing a broad overview of the country) and acreage there seemed to be a good deal more expensive then elsewhere, though that would make sense if the harvests are worth so much more. 

I was also considering Oak or Chestnut or Mapple (or other?) trees in the Appalachia region where land can often be found for dirt cheap. If you have any thoughts on that I'd love to hear them. 

Also do you have any books or resources you would recommend on types of wood or places I can determine the market value of wood or anything else that might be useful that I'm not thinking of? 

Thanks again. 

I'm considering buying timber land and I'm trying to figure out how to do calculations to determine good deals. 

My ideal situation is to find arbitrage opportunities where the price of the land is less then what the value of an initial harvest. I'm not looking to clear cut the land but ideally I would like to cull some of the weaker trees and allow the better hardwoods to grown and to plant more desirable trees. 

I've heard anecdotal stories about this being possible, but I was wondering if anyone has any good resources or models for determining the potential profitability of a piece of timer land. 

I know it varies tremendously by type of tree and number of trees on the property but any resources to get started are helpful. 

Just thought it was worth pointing out that this is NOT how percent returns sum. If you do two deals for a 25% return (assuming you don't use the money from the first to pay for the second) then your total return is still 25%. 

For clarity I was wondering:

1. Can a property be purchased for less then the Final Judgment Amount?
2. If I purchase the property for below the Final Judgment Amount do I still owe the difference in the Final Judgment Amount and my purchase price to the

   plaintiff?

3. And as a corollary, if I purchase the property for more then the Final Judgment Amount have I absolved the property of all liens? 

Thanks