When considering investment opportunities, many people fail to consider the potential for growth in the lumber industry. Some even contend that investing in timber land can be as profitable, if not more profitable, than investing in the stock market.
Timber land provides consumers with raw materials for building and paper production, products which are always in demand in our world. If properly maintained and re-planted, timber land can continually generate income for both the individual and the corporate investor.
Although timber land investments can be both satisfying and profitable, there are issues to be aware of before venturing into a sale or purchase of timber land resources. When selling timber or timber land, there are a wide variety of timber merchants, especially throughout the Northwoods of Wisconsin and Minnesota. The lumber industry has long been a staple in the economy of this region. While timber merchants may provide you with a willing and prompt buyer, it is important to carefully evaluate whether you are receiving adequate value for your timber or timber land. Timber merchants are specialists in the evaluation of timber land value and profits and therefore, can be very savvy when it comes to negotiating a price. It may be a good idea to obtain a second opinion or evaluation prior to going forward with a sale to an established timber merchant.
When looking to buy or sell a piece of timber land, a company well versed in forest management can provide invaluable advice about maximizing the value of a piece of property. Forest management experts can also assist owners of timber land in evaluating ways to lessen their environmental impact and utilize sustainable farming and harvesting techniques. Particularly wealthy individuals or corporations may even wish to contract the management of their timber land out to a reputable forest management company to ensure that they are utilizing the property to its full potential without inadvertently harming the environment. A reputable timber land management company should be able to provide you with a fairly accurate calculation of the value and quantity of timber a particular tract will produce. Many companies may be able to assist with additional matters such as investment analysis, damage claims, casualty loss offset, right-of-way acquisition, land exchange issues, new business plans, financial projections and even presentations to prospective investors. If you are new to the timber industry, employing a professional forest management service will likely be invaluable as you begin this new endeavor.
While large tracts of land purchased by large corporate investors are typically easier to manage, it is important not to underestimate the returns an individual investor can receive by investing in timber land. An individual investor in timber land can live on the land and gain a great deal of personal and emotional satisfaction from managing a timber land property. It is a much different pace of life than Wall Street or the corporate world at large, and may even generate similar returns on your investment as a stock portfolio or mutual fund would provide.
Be sure to engage a competent and trustworthy broker, regardless of whether you are buying or selling a tract of timber land. Before engaging the services of such a brokerage, be sure to make sufficient inquiry into their experience and knowledge in the field of selling timber land. Talk to other individuals or corporations they may have assisted in the past for recommendations or concerns. You want to make sure that the real estate agent you select is well versed in the intricacies and nuances of the purchase and sale of timber land and similar property.
It is also important to consider the surrounding resources available for the harvesting and use of the lumber when purchasing a tract of timber land. Once you have a supply of timber to sell, you will want to make sure you have a willing and able buyer in the form of a local paper or lumber mill. Also, be aware of the local, state and federal government regulations that may impact your use of timber land. Ordinances and laws in Minnesota & Wisconsin can contain very specific requirements for protecting and maintaining the sustainability of the land, in order to ensure the re-growth and protection of our precious natural resources.
If you are considering a purchase of a tract of timber land, or looking to sell, let the experts at LandBin.com help you make sure you take all the necessary steps to evaluate the positive and negative ramifications of your decision. Talk with legal and forestry management professionals in the locality where you are looking to purchase or sell to ensure that you are negotiating a fair price and reasonable terms. Provided you take the necessary precautions to protect your interests, investing in timber land can be both profitable and enjoyable for individual and corporate investors alike!