Selling the Timber on your property (Beaumont, Nacogdoches: houses, to buy, contractors)

[Just Lookin]

My Realtor says if we bought this one property we could sell the timber on it and make quite a bit of money doing so.

Does anyone know anything about selling your timber on your property? She also says you get a discount on your taxes for doing this. I don't know about that statement. When I looked up businesses in Texas. If you run a business on your property you have to pay a higher tax.

Any Ideas?

Thanks
Carol

[BobTex]

I own 50 acres that is heavily timbered (not quite as heavily as before last September though). You can make money.....you can pay for a place (land) with wise acquisition and some good fortune in the market. Though what I've said is true one has to buy the right tract........a timber cruise (evaluation) should be made for the amount of timber on the place (tonnage). Mature pine (lumber sawlogs) are the most valuable trees. I had a timber cruise in May on my place and the going rate was $22-$27 / ton. I won't sell at that. Generally a good price is better than $50/ ton. The market fluctuates but I haven't seen higher prices in over 2 years. My neighbor sold his pine in 2003 for $70/ton and paid for half of his 52 acre property , he made $85K and still had lots of timber left.

All this being said (alot I've said is anecdotal), the keys are the amount of timber, the quality of timber, and the going market price. The hurricane (Rita) caused quite a glut in timber here. All the mills yards are as full as I've ever seen them and that has driven prices down.

Tax related issues.....claiming your land as a timber farm is almost akin to getting aggriculture tax breaks. You must show a profit once every 5 years but losses (insect, fire, and drought) in the other years has sure helped my returns.

One other thing on tree harvest....you can clear cut and then replant......trees are harvestable (thinning)within 15 years here in East Texas. I'll post more if I can think of it later as I'm tired.

Bob

[Just Lookin]

Bob, you are great. Is there anything you don't know about? Gosh, thanks. It does sound a little confusing to me but maybe worth finding out about. Do you cut them down yourself, or have someone do it? I would like to find out what they charge to do it for you.

The house has 9 acres. I don't know if that is enough to do anything with. It is full of trees and I couldn't tell you what kind. Very tall and green.

Yes, the Realtor says that three of the Realtors there make a pretty go living doing that. ha when their not selling houses I guess.

I would like to know more about this. So please feel free to tell me what you know.

Thanks so much.
Carol

[BobTex]

Bound,

You'll need to find a crew (contractor) to cut your timber. It's kinda like acquiring a contractor for any other task you would hire out. You'll want to put your timber out for bids.....the more the merrier. Also you'd want references.....it is easy to get scammed/robbed by these contractors. Also to protect one's self some folks sell their timber based on their load tickets from the mill.......in other words you'd sell your timber based on the price the mill payed and the number of loads (a typical timber truck hauls 27-30 tons).

Some contractors specialize in smaller tracts like the one you're looking at and even cuttting in yards. Be aware that the land will be a mess after the crews leave and will regrow with a lot of scrub unless you get the land prepped and replanted or cleared and leveled with a bulldozer so you can maintain it from there with a garden type tractor.

As far as the realtor goes....take what you are told with a grain of salt....there job is to sell for their client. Also it is pretty common around here to speculate in land and timber.....buy, cut the timber, and then resale. In "poor" East Texas it can be lucrative.

I know that on almost any trip to town (12 miles) I'l pass anywhere from 3 to 8 timber haulers so it is the industry here. Logging operations are ongoing everywhere in my county. Also a lot of the wood is chipped and hauled in 18 wheel cargo vans to the Port of Beaumont and shipped overseas.

Ask questions as it is easier to respond than to think of the many things one could say about the timber industry here. Good luck!

[lifertexan]

Man,I tell you,for someone from west Texas who has to get by with 15' mesquite trees and a few pecan trees,cutting down nice tall pine trees seems like heresy.What I wouldn't give to have some trees like that around my house.

[Karan]

WE have 247 acres in Nacogdoches County in Timber, my cousin is a consultant and he arranges to cut when the prices are the highest. If you have enough acreage you can make pretty good money off of timber.

[SmokeyWaterz]

Hope this thread is still active...

We bought a place that has some decent sized hardwood (Oak and Hickory). There's also a fair amount of smaller hardwood. Is there any value in selling it?

I tried to research it a little bit, but the toneage thing lost me.

Thanks!