FAQ I Have Recently Purchased/Inherited Some Forest Land. What's Next?

By
Services for Real Estate Pros with Woodland Management Service / Woodland Real Estate, Keller Williams fox cities #1 in Forest Land Mgmt
http://actvra.in/4yBV

FAQ - I Have Recently Purchased / Inherited Some Forest Land. What Should I Do With It?Forest Land

 

Often times I get calls from people who have recently acquired a parcel of Forestland and recognizing that they have a prized asset, seek to find some expert advice on how to maximize this asset.

Forest Appraisal

 

 

 

The first critical step is to have an appraisal completed.

The best time to have an appraisal is before purchasing a property, but if this has not been done then the second best time is NOW.

Folks who have an appraisal completed before the purchase often do it at the insistence of their lender, to substantiate the collateral for a purchase loan.Forest Planning

But there is a second reason to have an appraisal done when purchasing or inheriting land that is to establish a “timber basis” for the IRS.

If a basic is correctly established at the time that the property is acquired then you can use the depletion allowance for a portion of any timber income taken from the property, or for catastrophic losses from storms or fires.

 

Then next step that should be completed and often combined with your appraisal is a Forest Management Plan, you don’t start or run a business without a business plan, why would you leave your valuable forest to random chance.

Forest Management Plan

 

A Forest Management Plan details what you have in your Forestland Asset, details what the potential is for your Forestland Asset, and details the steps that must be taken to achieve your goals for the property.

This Forest Management Plan will guide you in creating the wildlife, recreational, and income producing paradise that is desired for your Forestland.

 

There are many other things to consider for your forestland success, but the most important first steps do include an Appraisal and a Forest Management Plan.

 

Give us a call and we can help you get started.

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Gayle Rich-Boxman Fishhawk Lake Real Estate 08/25/2013 10:13 AM
  2. Sally Crane 11/03/2015 01:34 PM
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Rainmaker
2,362,942
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Bob, fantastic advice to people who recently Inherited or Purchased Forest Land!, Endre

Aug 23, 2013 03:48 PM #1
Rainmaker
2,062,607
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

You share some really great advice for anyone that is interested in buying or owns some forestland. Each time I read your blog, I learn something.

Make it a great weekend!

Aug 23, 2013 08:01 PM #2
Rainmaker
590,841
Peter den Boer
Atlanta Communities - Woodstock, GA
MBA,GRI,ABR, SRES, Associate Broker, Realtor

Bob - Thanks, I learned something today. So much to know about so many types of properties! Have a great day!

Aug 23, 2013 10:15 PM #3
Rainmaker
2,440,721
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I am taking a listing where the lot is 2 acres and there are 100 old oak trees on it...so pretty...thanks for the great post again and pix!

Aug 23, 2013 10:49 PM #4
Rainmaker
1,707,206
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Timber Basis?? Is there anything the IRS doesn't have their hands in Bob?  :)

Great advice and explanation for this FAQ.

Aug 24, 2013 01:47 AM #5
Rainmaker
1,173,460
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Bob~ if I ever buy forest land "I know exactly who to turn to" Awesome post!

Aug 24, 2013 01:57 AM #6
Rainmaker
3,182,542
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

What you do with it also depends on what you want to use it for...hunting, income, leave natural.   All have different needs to work on.

Aug 24, 2013 08:08 AM #7
Rainer
213,354
Sally Crane
WMS - Unity, WI
Woodland appraisal support.

Great post Bob.  Thanks for all the information, and the pictures are wonderful.    I think this is good for anyone buying, inheriting, or who already own wooded land and aren't sure how to make the most of it. 

Aug 24, 2013 08:35 AM #8
Ambassador
1,198,522
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Gateway to the Lake" 503-755-2905

Bob, so often when I read your blogs, they are ones that I feel the need to pass onto whomever is lurking about my blogs for local info. This is pertinent to my area as well, so I am going to re-blog this valuable piece of information!

Aug 25, 2013 10:11 AM #9
Rainmaker
705,033
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Bob-Thanks for the education. Part of what you describe seems roughly like a census or inventory of the parcel. Your info is very helpful.

Aug 28, 2013 12:25 AM #10
Rainer
96,662
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hey Bob - you opened up a while new outlook for me as I couldn't see the forest through the trees regarding forest land. 

Jan 25, 2014 05:25 AM #11
Rainmaker
910,841
Richard and Beth Witt
Long Island Cash Home Buyer - Massapequa, NY
Long Island Cash Home Buyer 516-330-6940

BOB.... You can be sure of this... if we ever are fortunate enough to inherit some forest land we will be on the phone with you the second we learn about it...

Hope you're having a great day my AR Friend...

Aug 18, 2014 04:46 AM #12
Rainmaker
297,957
Tammy Adams ~ Realtor / Podcaster
Maricopa Real Estate Co - Maricopa, AZ
A Maricopa Agent who Works, Lives & Loves Maricopa

While we don't have many trees here in Arizona  :-)   I found this absolutely fascinating to learn!

Oct 26, 2014 02:20 PM #13
Rainmaker
1,321,286
Lise Howe
Long and Foster - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

This is greta advice- my cousins still own family land in North Carolina along the Georgia border- there is great timber on that property- I will let them know about your post! 

Dec 18, 2014 08:20 PM #14
Rainer
179,310
Nicholas Crane
Crane Forest and Property Management - Cadott, WI
Managing & Appraising Forest Land

Great Info thanks for posting.  It is vital for a forest to be managed correctly, for that to happen, you need to know whats out there and have a plan on how to manage it. 

Apr 18, 2015 09:40 AM #15
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Bob Crane

Forestland Experts! 715-204-9671
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