dmccarty
Super Star Member
Phalynx,
In NC most timber deeds are sold such that the logging company can take two years to cut the trees. The timber sale is a legal transaction handled just like you would sell a house or land. Well it should be but I think many people are taken during timber transactions but I digress.
If there is a timber deed for the land in question you as the buyer should know about it since one normally expects the trees to go with the land. I can't remember how you would know if the land has a timber deed attached. I assume a lien but I just don't remember.
Depending on the timber and land value it very possible to buy land with trees where the timber value is more than the land. The timber can be sold for as much or more than the land. When the trees have been logged the land is sold as more profit. The timber company does not want to tie up their capital in the land so they sell.
When we where looking to buy land, we saw many properties that had been logged and then the land put on the market. We found one parcel that was gorgeous. It had been subdivided into 5 to 20+ acre lots. The 20+ acre lot we liked overlooked a low area that had a creek running in a valley. The other side of the low area, 10 acres or so, was an old RR line that had been abandoned which was the property line. VERY pretty. Some HUGE 36+ trees.
We told the sellers we would pay their asking price but NO timbering. They would not sell since they wanted the timber value. The land after logging would have been torn to heck due to soil conditions and wetness. This is what these guys would do. Buy land with good timber. Subdivide the land. Timber the trees and then sell the land. They where turning over lots of money. The trick is to fine the land with the timber. There are or where tax issues that worked to their advantage as well.
Later,
Dan
In NC most timber deeds are sold such that the logging company can take two years to cut the trees. The timber sale is a legal transaction handled just like you would sell a house or land. Well it should be but I think many people are taken during timber transactions but I digress.
If there is a timber deed for the land in question you as the buyer should know about it since one normally expects the trees to go with the land. I can't remember how you would know if the land has a timber deed attached. I assume a lien but I just don't remember.
Depending on the timber and land value it very possible to buy land with trees where the timber value is more than the land. The timber can be sold for as much or more than the land. When the trees have been logged the land is sold as more profit. The timber company does not want to tie up their capital in the land so they sell.
When we where looking to buy land, we saw many properties that had been logged and then the land put on the market. We found one parcel that was gorgeous. It had been subdivided into 5 to 20+ acre lots. The 20+ acre lot we liked overlooked a low area that had a creek running in a valley. The other side of the low area, 10 acres or so, was an old RR line that had been abandoned which was the property line. VERY pretty. Some HUGE 36+ trees.
We told the sellers we would pay their asking price but NO timbering. They would not sell since they wanted the timber value. The land after logging would have been torn to heck due to soil conditions and wetness. This is what these guys would do. Buy land with good timber. Subdivide the land. Timber the trees and then sell the land. They where turning over lots of money. The trick is to fine the land with the timber. There are or where tax issues that worked to their advantage as well.
Later,
Dan
