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OTIS2 
LSU Fan
NoLA
Member since Jul 2008
18515 posts
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| Timber Property Investment. Any Tips for a Novice? (Posted on 10/8/12 at 5:21 pm)
Scared of the stock market as a sole investment option so I'm considering timber. Anyone with experience and advice?
This post was edited on 10/8 at 5:22 pm
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I Love Bama 
Alabama Fan
Alabama
Member since Nov 2007
27122 posts
| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/8/12 at 6:02 pm to OTIS2)
I know a guy in N. Alabama that does it and makes a killing. Let us know what you find out about it.
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OTIS2
LSU Fan
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Member since Jul 2008
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| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/8/12 at 6:14 pm to I Love Bama)
Pine timber grows so fast now, the return on investment looks very attractive.
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TheHiddenFlask 
Clemson Fan
The Welsh red light district
Member since Jul 2008
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| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/8/12 at 8:21 pm to OTIS2)
The big guys kill it. Lots of efficiencies of scale in the industry.
It's a lot harder for the small guy to make it on the business side of it. You're basically just making a big levered bet on the land, unless you are closely managing the timber.
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frb1951
Member since Apr 2012
60 posts
| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/8/12 at 11:10 pm to TheHiddenFlask)
Land is one of the best investments, if not the best investment there is. Be sure to hire a Forester before you have any timber cut as he can survey your timber and mark the trees you should cut which provide other trees the room to grow, etc.
Foresters generally know which ones to cut and which trees to save. The only other problem you might encounter is finding a reputable logging company. Check references not only on the Forester, but also on the logger.
Many times a good Forester will work with one particular logger as good, honest ones are hard to find. Also, when your timber is being cut, have someone on hand to make a log of each truck that leaves your property so you can follow the sells and make sure you're are getting paid for all of your timber.
You might want to start with LSU's Agricultural Department for the names of some good Foresters.
Good luck!
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TheHiddenFlask
Clemson Fan
The Welsh red light district
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| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/9/12 at 12:17 am to frb1951)
quote:
Land is one of the best investments, if not the best investment there is.
Signed, 2006
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Meauxjeaux 
Memphis Fan
I have 91k posts with all my alters
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13036 posts
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| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/9/12 at 7:33 am to TheHiddenFlask)
And 1906!
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ThatsAFactJack
Broussard
Member since Sep 2012
121 posts
| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/9/12 at 9:08 am to TheHiddenFlask)
quote:
TheHiddenFlask
Signed, 2006
Flask,
I have zero land investment skills, so this may be a dumb question. I assume with your comment you no longer feel land is a good investment. Why? To me land especially now will always be a good investment, because once all the land is gone, thats it. I think buying land in huge tracts is always a good investment either for timber, or development later on.
TIA
This post was edited on 10/9 at 11:41 am
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Chad504boy 
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
64944 posts
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| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/9/12 at 9:12 am to ThatsAFactJack)
Signed 2013.
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reb13 
Ole Miss Fan
Oxford, MS
Member since May 2010
7974 posts
| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/9/12 at 11:47 am to TheHiddenFlask)
quote:
The big guys kill it. Lots of efficiencies of scale in the industry.
This, my buddy owns about 3000 acres in south georgia. They make money off pine straw as well as the timber. But prices have been low and the cost of extracting the goods can be expensive if you are not a large operation.
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Bear Is Dead
LSU Fan
Monroe
Member since Nov 2007
2140 posts
| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/9/12 at 11:49 am to OTIS2)
Since the timber market collapse, you can get damn good hardwood land around here for dirt cheap. Some of it goes for as cheap as $700/acre. Meanwhile some farmland is going for $4000/acre. Farmland bubble is gonna pop soon.
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TigerDog83
LSU Fan
Member since Oct 2005
3890 posts
| re: Timber Property Investment. Any Tips for a Novice? (Posted on 10/9/12 at 12:05 pm to Bear Is Dead)
quote:
Since the timber market collapse, you can get damn good hardwood land around here for dirt cheap. Some of it goes for as cheap as $700/acre. Meanwhile some farmland is going for $4000/acre. Farmland bubble is gonna pop soon.
As soon as the farm subsidies start getting cut like they should farm land will probably dip in price. Look at the outrageous prices farm land has gone for in the midwest lately.
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