timber offering

Joseph Zorzin redoak at forestmeister.com
Sun Oct 26 06:14:15 EST 1997


ForestFair wrote:
> 
> >Don Harris wrote:
> >
> >> Are the bids to be received sealed?  Then posted on the web? I would say the
>   best offer would be $80,000, give or take a log or two.<<
> 
> and Joseph Zorzin <redoak at forestmeister.com> replied:
> >
> >Bids are sealed and opened at the designated time. That would offer
> >would not be rejected. <G> Now if I could do one of these each month- in
> >my dreams.
> >
> On a sale this size,  how much money do you get up front?  At what price do you
>  start losing interested bidders because of lack of sufficient resources to pay
>  100% prior to the start of logging?

I make them attach a certified check with the bid of $3,000. This way if
the high bidder changes his mind, he loses it- and I keep the other ones
until I have a contract signed and all the money, so I can then go to #2
if #1 drops out. The high bidder must pay 100% at the contract signing.
The performance bond- another certified check of several grand, he can
wait until he's actually ready to start which may take several weeks. If
I sold it in say in September and I said he can't start until Jan. for
my own reasons then I would take only a deposit and the balance due by
day of starting. In this area many of the mills are wealthy. They don't
look like it but the owners are- many mills are generations old- the
owners all bought land when it was cheap or free after they extracted
the timber so they built up their capital. Timber sales of up to
$150,000 happen here and they can get it. In rare exceptions I'll work a
deal on the timing of payment. If the high bidder is much higher than
#2, but he put a note on his bid saying he'd have to work a deal on
payment, then I'll consider it. But the only way to have control over
the situation is to have ALL the money first. I'm pretty easy to get
along with loggers. I understand their difficulties. Some foresters
don't and are assholes to the loggers. I respect them as their work is
difficult and dangerous. I have developed a reputation as a straight
shooter. I often see opportunities for unethical behavior- which I
wouldn't do as it's unethical, plus it would ruin my reputation- crooks
always get caught eventually, then I'd have to drop to a lower
socio/economic level and work at McDonalds. <G>

> 
> How long do you give for completion of logging in a large sale?

Usually a year is good. If they really got on it they could do it (200
mbf) in 3-4 months but I don't like to bust their balls on something
like this, they'll do a better job if you give'em enough time. They
often have several harvesting projects going on at one time and they
need to juggle their resources. Again, it's because I respect their
postion. If they don't have it finished on time and they weren't trying,
I'll hit'em up for money for an extension. If they really did try and
had a good cooperative attitude I'll just give them a reasonable
extension.

-- 
http://forestmeister.com
"The ONLY forester's web page in the otherwise sophisticated state of
Massachusetts".



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