forestry investment funds
jostnix at aol.com
Thu Oct 16 07:14:25 EST 1997
>Is that kind of return really possible when you factor in all the costs
>of holding the land? Or is the investment being made on the speculation
>that the land value will rise?
You need two things. 1) a financial calculator (ever heard of one:?) and
2) a book called Basic Concepts in Forest Valuation and Investment Analysis
by Bullard and Straka. Then you have to know how to use the calculator and
be able to read.
Next, you hire a smart forester (that's the catch:>) or group of same to
find high site index land with optimum reproduction of a good species or
presently growing good timber. Again, that smart forester can do that by
actually getting in a truck or Mercedes M-Class (if he is doing a good job)
and purchasing these properties in bulk...to include corporate takovers and
poorly managed family estates. You have to have a lot of land...not a
Then the investment company sees you making them money and pays you a lot
of money to buy more good timber and land. You do so, create a cash flow,
show a profit after tax and this is called capitalism.
And this money can be made without selling any land. It is done by using
something call forest management with significant help from hunting rights
(usually pays taxes in South). This is an added incentive to hire a
wildlife biologist on bigger holdings. The multiple-use thing that is a
bad word these days overrides ecosystem management but strangely enough
works just as well...and for a profit, praise the world.
Joseph, you can make money growing trees. More foresters need to believe
this. The Preach'n is done<grin>. Im off to the Smokies to see the leaves
and will not see you response through the weekend (tag, your it).
``````) (_________John Stephen Nix
"Everybodys ignorant 'cept on different things" Will Rogers
Alabama Forestry Link...http://members.aol.com/jostnix/index.htm
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