Thoughts on timberland investment

Someone woulda already snapped it up if it was any good.

Need acerage
Need boundary info
Need Parish
Is it listed with realtor
What about mineral rights
Who does the forestor work for
What about engressand egress
Any environmental concerns

If you move forward get a repacted forestor that works for you a get a lender that knows timber, reach out to your state forestry association, get an attorney that deals with timber tract sales, get a surveyor to flag your property lines, post property, get a phase 1 environmental at a minimum

What parish?

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Also, If you are in LA I can help pit you in touch with all the folks you need to give you solid counsel.....CPA, attorney, timber land lender, forestor, appraiser, surveyor, etc.

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Very kind offer. I have purchased and owned timber. Not an amateur. More interested the that expected return. The forester (who I trust) expects one more pulpwood thinning, one chip and saw/saw timber mix thinning, and one saw timber clear cut. Timber is so low right now those numbers could be slightly off. But lots of room for upside as well.

Stand is 20 yo pine with 1st thinning completed at 16 yo. Above average soil mix.

Kinda my thoughts Ric Flair. I bought some timber in the past and don't mind long term investments but I purchased it at a better price point.

If timber prices increased significantly during that time it could change the equation.

So you are saying its about 300 acres you are going to buy for $1,000/ acre and then the land is going to go down to $200-300 acre after its cut? I don't know anything about Louisiana land prices but under $500/acre is absurdly cheap for land, I have a hard time any land tract that big would be that cheap? Or am I missing something.

I know timber land prices drop drastically after it is cut, but I'd have a hard time making any investment where the principal is going to drop that much. I would also think in 10-15 years it would be worth more than what you are thinking.

300 acres you could also lease for hunting. No idea what the price in your area is, but over 10-15 years I'd think you could get at least $25,000.

A few things to consider:

Is the location somewhere that would be desirable for hunting leases? If so, what is the going rate?

Property tax rate?

Is access a huge problem or something? Or is it a swamp? That seems mighty low for the dirt, but I know nothing about the particular property.

Is it in an area with a high risk of hurricane damage? Pine beetle damage? Catastrophic loss is always a possibility in timber.

ROI seems mighty low based on the numbers you provided. Especially if the land is undesirable and there is little opportunity to sell in the event that you have an emergency and need liquidity.

Let me put it this way, you buy your 300 acres and make all that money, after you cut timber I will gladly give you 100k
I don't GAF where it's at

Your 300 acres will at least be worth 300k in 15 years, no doubt.

I never said it was 300 acres. I agree, most clear land in north LA is worth 800-1000 per acre but not an easy sale.

I am being vague because I haven't made a decision on the property.

Thanks for everyone's input.