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Anyone on here invested in timber land before?

Posted on 6/6/23 at 9:49 am
Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/6/23 at 9:49 am
I'm seeing quite of bit of land where I'm from that is being sold very cheap but the stipulation is owners want to retain their mineral rights for oil and gas. But timber rights are fair game.

I've done well flipping homes but the market isn't ideal right now so I'm thinking about potentially buying some tracts - having them clear cut and then selling them again.

Google obviously has some information but I'm just wondering what the true revenue stream from this investment.
Posted by DaBeerz
Member since Sep 2004
16989 posts
Posted on 6/6/23 at 10:11 am to
Why would someone want to buy land from you with NO timber for 20 years or mineral rights. Sounds like a bag holder
Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/6/23 at 10:19 am to
quote:

Why would someone want to buy land from you with NO timber for 20 years or mineral rights. Sounds like a bag holder
Because it would dirt cheap

80 acres for 50k cheap with great hunting
Posted by KillTheGophers
Member since Jan 2016
6223 posts
Posted on 6/6/23 at 12:28 pm to
Many people pass on land that have no mineral rights. That can come back to haunt you one day if you are the dirt owner and exploration starts into development.&

How close is the land to a sawmill cause it will be tough to get a reputable logger’s attention at 80 acres?

Is the land under any easement program currently?

Are there any wells on the property now?

Get it surveyed before buying - could help avoid future issues.

Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/6/23 at 12:43 pm to
quote:

How close is the land to a sawmill cause it will be tough to get a reputable logger’s attention at 80 acres?
Close, within 30 miles of major sawmills. Areas have been clear cut nearby.

quote:

Is the land under any easement program currently?
No. raw with no conservation or other easements.

quote:

Are there any wells on the property now?
One on the neighboring property but not this one.

quote:

Get it surveyed before buying - could help avoid future issues.
Yeah that would be the plan. I'm not even sure how much it would cost to have 80 acres surveyed but it would be needed for sure
This post was edited on 6/6/23 at 12:44 pm
Posted by turkish
Member since Aug 2016
1785 posts
Posted on 6/6/23 at 2:03 pm to
How much does this land cost per acre and how much is clear cut land selling for?

Good hunting land seems to be fetching a premium these days. I’m not sure the best strategy would be to completely clear cut.
This post was edited on 6/6/23 at 2:34 pm
Posted by Cdawg
TigerFred's Living Room
Member since Sep 2003
59605 posts
Posted on 6/6/23 at 3:12 pm to
quote:

80 acres for 50k
within 30 miles of a sawmill?

I'd be asking why hasn't anybody swooped in already if there is actual timber on there ready to cut at about $600/AC when the acreage in rural LA is probably 4-5k for that size tract.

Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/6/23 at 6:17 pm to
quote:

within 30 miles of a sawmill?
Yes.

It's not currently at $50k

It's an off market deal and I could get it for $1000/acre

It's a family that's not in state and just want the gas royalties. They've had it leased to guys to hunt and they've never been approached for the timber.

It has deeded access and the neighbors had their set logged.

My thought process is if I bought it could I clear cut it and sell the timber then either keep the land and lease it for hunting, plant it snd harvest the timber again in 30 years or flat out flip the land.

I'm thinking I could get some trail cam photos and hire whitetail properties guys and try to get $70-$80/acre without mineral rights.

I would need to be able to net $800-$1000 an acre to justify buying it with essentially no risk.

Even if I could break even on the land I wouldn't mind having 80 acres extra to hunt that cost only property tax

Posted by Tvilletiger
PVB
Member since Oct 2015
4995 posts
Posted on 6/6/23 at 6:48 pm to
There is a lot more info needed on this subject. Have they been doing burns? If not it is probably pretty crappy hunting land anyways. Have the already thinned the trees out. Usually there are tons of companies willing to thin them out for free if they get the trees.
Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/6/23 at 7:12 pm to
quote:

Have they been doing burns?
It's not a farm. This is raw natural land.

quote:

If not it is probably pretty crappy hunting land anyways.
This is maybe the only thing I can 100% guarantee it's not. It's slammed with deer and I know one of the guys in the club. They harvested at 164" bucks on it in '21.

quote:

Have the already thinned the trees out. Usually there are tons of companies willing to thin them out for free if they get the trees.
Nope, to their knowledge the land has never been cut.
Posted by H2O Engineer
New Orleans
Member since Feb 2011
626 posts
Posted on 6/6/23 at 11:17 pm to
Which parish? I was able to get timber property in Winn parish for around $2k an acre. It's been decent hunting for deer and wood ducks which was the main reason for the purchase but it is plantation planted with 16 year old pines. We'll be looking to do our first thinning next year. The thinning should help the deer hunting and I suppose potentially help value of the land for any future harvest. I consider any timber revenue as lagniappe.
Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/7/23 at 8:29 am to
quote:

Which parish?
Union

quote:

I consider any timber revenue as lagniappe.
Yeah I'm not making it my primary source of income. I'm just not heavily investing in home flips right now and frankly the rental market looks a bit over saturated as well so I have contacts with folks around north Louisiana that will sell their land for essentially 1/2 of market value if they can retain the mineral rights. Sub surface, not surface.

I don't think a 20 acre set is really worth investing in for timber but 80 acres might be.

That and my worst case scenario would be to keep the land and hunt it and replant it. If I could break even then I get a nice bump in retirement when I harvest it and then pass it on to my kids and they get a couple of nice bumps in their lifetimes.
Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/7/23 at 8:41 am to
quote:

How much does this land cost per acre and how much is clear cut land selling for?
I can get it for $1k/acre

Clear cut land is selling for $2k-$3500 with mineral rights

I would want to sell it for $700-$800 clear cut with no mineral rights (as I would not maintain them)

So I would have to find someone who wants 80 acres of recreational property for $50-$60k that clear cut.

Or lease the land to a large wood producer like Weyerhaeuser
Posted by baldona
Florida
Member since Feb 2016
20512 posts
Posted on 6/7/23 at 8:47 am to
I don't think your plan is terrible, I'm just not sure it will go super smooth as there are people that do this for a living. But if you can be patient and hold the land and have some buffer built in, I'd say do it.

Has land really gone that far down in value? A year or 2 ago it was damn near impossible to find acreage for under $2000/ acre almost anywhere thanks to preppers moving to the country due to covid.
Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/7/23 at 9:12 am to
quote:

I don't think your plan is terrible, I'm just not sure it will go super smooth as there are people that do this for a living. But if you can be patient and hold the land and have some buffer built in, I'd say do it.
Thanks man. Yeah I'm not trying to compete in the market with anyone. Just seeing an opportunity on the side and seeing if it's as good as it looks on paper or if I'm missing something.

quote:

Has land really gone that far down in value? A year or 2 ago it was damn near impossible to find acreage for under $2000/ acre almost anywhere thanks to preppers moving to the country due to covid.


It's off market deals where folks want to maintain their mineral rights.

There's clear cut land close by with mineral rights that's on the market at $5,500/acre
Posted by bayoudude
Member since Dec 2007
24964 posts
Posted on 6/7/23 at 10:35 am to
quote:

Many people pass on land that have no mineral rights


Mineral rights are hard to find in MS as they never revert back to the land owner once decoupled. Weyerhaeuser didn’t even have them on the land I bought from them but I did stipulate clay, sand, gravel and timber when I bought from them as suggested by the title attorney. I have 70 acres of planted pines that are roughly 15 years old and 60 acres of natural bottoms. Paid $1875 an acre 6 years ago and could probably double my money if I sold today as the county is growing at a good clip.
Posted by bayoudude
Member since Dec 2007
24964 posts
Posted on 6/7/23 at 10:36 am to
quote:

I'm not even sure how much it would cost to have 80 acres surveyed but it would be needed for sure


Paid $7,500 to have 130 acres of heavily wooded land surveyed
Posted by Solo Cam
Member since Sep 2015
32679 posts
Posted on 6/7/23 at 11:43 am to
quote:

Paid $7,500 to have 130 acres of heavily wooded land surveyed
I was imagining it would be roughly $5k-$6
Posted by turkish
Member since Aug 2016
1785 posts
Posted on 6/7/23 at 12:23 pm to
If you can buy it for a fraction of the purported fair market value, why are you messing around asking us what we think? You could give the timber away and still make money, supposedly. Jump on it.

Otoh, I thought in LA you couldn’t permanently decouple the surface and mineral rights.
This post was edited on 6/7/23 at 12:28 pm
Posted by bayoudude
Member since Dec 2007
24964 posts
Posted on 6/7/23 at 1:15 pm to
I think LA they go to the current land owner after 10 years of no activity. At least that’s what I have always heard.
This post was edited on 6/7/23 at 1:16 pm
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