Timber and Stone
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Look up, look down, and look under as you assess the value of land.
We are blessed with Valuable Hardwood and Softwood timber on many of parcels of land that get overlooked. The same is true of Bluestone, Gravel, Coal, Fieldstone, and many others.
As owners, buyers and brokers of land, we need to value the resources as they are, in place. If cut down timber or dug up the stone, what does that do to the value?
Many land parcels I have bought have doubled or tripled in value, with
applied management practices. If land is stripped of wood or stone and not reclaimed the value is severely reduced.
Having been in the timber and stone land business for over 30 years, I have many great stories of how to find the extra values and I’ll share two now.
The first land piece in Pennsylvania that we purchased and cut 3 times in 25 years was 110 wooded acres.
The first cutting was to remove all inferior pulpwood trees, along with all hardwood over 18” at chest height. The second was cut 8 years later the same way. 10 more years went by and that cutting was prime hardwood yielding more per acre than the last two cuttings.
Over all the return was over 25%per year when the land was sold. Shale and bluestone returns were on top of that.
Another New York piece I purchased was all wooded with gypsy moth damage. All mature trees and damaged trees were harvested immediately. The woods were improved as well the value of the land. 3 years later the land was sold for 3 times higher including timber value.
I’ll add that both these land parcels values were due to improving the land not appreciation.
Keep your eyes open; obtain some current information on timber and stone value in your area. You may be hooked into the land business after you do some deals.
More ways to find deals will follow…
