Been eyeing a few pieces of property in a few various Midwest states. Primary goal is simply to diversify investments while also having another state to hunt in. One of the properties I'm currently looking at has around 30-40k worth of hardwoods from a recent forestry appraisal on a property worth under 200k, my question is has anyone ever contracted with a seller to have the timber cut to cover the 20% down payment? Pros and cons of going this route. TIA
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So you want the current owner to give you the logs to cover your down payment? I just don't see that happening.Last edited by Walker; 07-15-2024, 08:15 AM. -
If I were going to hunt it, I would want to leave the hardwoods. If doing it strictly for investment, then I might consider it. In case you have not been around much logging, It leaves a mess for you to clen upComment
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It’s called a Simultaneous Closure. It takes a lawyer that is familiar with this type of purchase. My BIL was in the timber business for years and bought several properties this way with no money down. After property has been cruised for timber value and acceptable bid has been offered, the timber buyer, the seller, and the buyer meet at the closing on the same day.Comment
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Other than having a lawyer involved, did your BIL have any regrets going about it this way?Originally posted by Gumbo Man View PostComment
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Not at all. He was buying property to clear cut and sell as cut over property.Originally posted by Garrett Harlan View PostComment
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If you buy a property, make sure to get in writing that the hardwoods will stay. Many landowners take them out once the deal is done. I’ve seen it too many times.Comment
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Sounds like a great hunting land purchase and a terrible investment.Comment
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