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Woodlot and logging dream

Started by mf40diesel, October 31, 2015, 07:56:17 AM

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mf40diesel

This kinda has something to do with logging, but also kinda complaining about the state of things in the real estate world.  Working on purchasing the house next to where we live in western maine. Beautiful views, beautiful home, 42 acres of well drained mixed species forest with a 6 acre field. Although it was just selectively cut a few years ago ( a little more aggressively than I would have liked) there is still enough firewood to heat my house forever, and sawlogs enough to cut a load now and again to pay for my habits. Plus already a nice network of pretty good skid trails.

I have a 4wd tractor and a small farmi winch, want to armor the tractor all up and upgrade to a tajfun winch, I don't think, even with a good deal a man could justify a skidder with 42 acres, although it abuts my dad's 25 acres. With that said, Id love to have a small TJ, tree farmer or a 440 deere.

My gripe is about the real estate market, only say it here cause I imagine that you all agree.  Our mortgage lender just declined our loan, thank goodness not because of our end of the deal, but because of lack of comparable properties. At first they said the comparable radius had to be 6 miles!  My road alone is 3 miles and nothing has been bought or sold on it for many years.  Then the issue with the land,  anything beyond 5 acres adds no value. And when reaching further out, comparable houses had varying amounts of land, 31, 24, 17, 46 acres were the lots of the other comparables. Because they were not all 42, they aren't comparable. They seem to only want the "cookie cutter neighborhoods" in suburbia.  I assume we all here agree, to me the land in the most valuable part, no one can move there, make a small income perhaps and heat the house for free (with my equipment and time).
We have gotten some encouraging news from a local credit union, so hopefully there is a light at the end of the tunnel. Just thought I would share this here, I can't wait to go to work!
John Deere 5055e, mfwd. Farmi JL306 Winch. Timberjack 225 Skidder. Splitfire splitter & Stihl saws.

Fedge

There are lenders out there that will do it. You are going to have to look around a bit. The typical big bank is not going to do it. You need to find an Ag bank or someone that specializes in Recreational land loans. In WI, we have several financial outfits that would do what you want. I used to be a Commercial Loan Officer and generally speaking, the bigger the bank, the dumber the rules.

Geoff
A smart man knows a lot, a smarter man knows what he doesn't know.

Ozarker

Unless some things have changed in land appraisal, it is not necessary that comp properties be the same amount of acreage as the subject property. There are formulas for extrapolating relative values. I think Fedge is onto the real problem.

Peter Smallidge

Hi MF40:

First, I wish you well in the purchase.  There's nothing like owning your own "playground."  Be safe of course.

We bought land once through Farm Credit. They understood timber values.  I found this one in Maine, but just search for "Farm Credit Maine."

https://www.farmcrediteast.com/

Peter
Peter Smallidge
NYS Extension Forester &
Adirondack Woodlot Owner
http://cornellforestconnect.ning.com

WV Sawmiller

Diesel.

   Good luck on achieving your dream. We moved here to WV 25 years ago last summer when my wife took the HS Band director job here while I was working overseas. We bought our big log home and 41 acres (would be 80 if it was flat as rises 450' from front to back). Mostly woods with 8-10 acres of field.

    We used VA and they also stick with the home and 5 acres rules as do many others. Keep looking as there are many other options for financing. Not sure all the details as to owner (Bank, individual, etc) but that comes into play. Keep shopping around and ask the lenders what else you can do to improve your chances of getting the loan.
Howard Green
WM LT35HDG25(2015) , 2011 4WD F150 Ford Lariat PU, Kawasaki 650 ATV, Stihl 440 Chainsaw, homemade logging arch (w/custom built rear log dolly), JD 750 w/4' wide Bushhog brand FEL

Dad always said "You can shear a sheep a bunch of times but you can only skin him once

mf40diesel

Thanks for the info. I think and hope that we are onto something with the credit union. They looked at the appraisal that we had done and seemingly liked it. So my fingers are crossed.  Just frustrating really.

I have heard of the farm credit, a friend of mine just told me about that a few weeks ago. Over the years he has amassed 400 gorgeous heavily wooded land. Most of it with the help of farm credit.

Around here 400 acre is a lot for a privite owner. Not many crest 40 acres actually. Although I just learned of a guy next town over with 15000 acres. For a private owner, not timber company, that is extrodinary.
John Deere 5055e, mfwd. Farmi JL306 Winch. Timberjack 225 Skidder. Splitfire splitter & Stihl saws.

Straightgrain

A dream for sure! No doubt, it will all go through and you will be hard at work in no-time.

Interesting phenomena about land ownership; everything that happens makes you a stronger landowner. Difficult  neighbors, trespassers, bad weather, taxes, hanging onto it, and all the enjoyable things is all rolled up in the precious experience of ownership/stewardship.

Using logging and forestry equipment, cleaning up, watching the understory develop and grow, enjoying the serenity, leaving land better than you found it, and interacting with the wildlife are some of  the best experiences for sure.
"We fight for and against not men and things as they are, but for and against the caricatures we make of them". Joseph Schumpeter

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