Has anyone looked into investing directly into timberland?
I've only read a little about it so far. But it seems like a nice, low-maintenance real property investment.
I've considered paying cash for 50-100+ acres nearby in Maine where prices can get down into the $500/acre range. From what I've read a managed forest can get annualized returns of around $150-$300/acre.
The only work involved seems to be thinning every 7 years or so. And then the big harvest every 30 years or so. Which basically involves calling a forester, having him analyze the timber and then calling for bids from logging companies to cut it down. Plus there's the possibility of a more active income from byproducts like producing biomass, compost, and from crops grown on the forest floor.
I'm planning to find a rural house somewhere anyway in the next few years with at least a few acres for me to cultivate. So I was thinking, why not get a lot of acreage so I'll be sure to have my privacy, plus perhaps make a profit off the excess land with minimal hassle?
Anyone here ever managed a forest or thought about getting into it? Seems like a very ERE compatible investment, especially for the recluses among us.