2010

2010….I can hardly believe it’s a new decade, my son turned 16,  and the next time we face a new decade, he will be 26…..notice I didn’t mention I would be ten years older as well.  It is moments like these that make me realize that the time we as family spend together is priceless and is always cherished.  It also makes me realize how much the great outdoors has played a part in our family time.  Each year my wife makes a scrapbook for both of our moms highlighting all of the things we did as a family and almost all of our family’s activities for this year took place oudoors.  No matter what the season or activity,  we seem to be doing it….outdoors

Just this weekend as cold as it was, we found the time to take a walk through the woods, and of course, hunt.  Yes, we froze, but it felt invigorating to be out there and more importantly, memories were made, the pictures were taken for next year’s scrapbook…. and that’s all that counts.  Hope you have a great year enjoying the outdoors too.

Opening Day

Opening Day.  There are no two other words like it.  Some relate the phrase to dove or quail hunting and some others even relate it to duck season or turkey hunting.  I personally relate it to the beginning of whitetail deer season and autumn, a time when Mother Nature begins to paint her landscape in vivid oranges, yellows, and reds.  In different parts of the country, it takes on different dates, but no matter where you live, Opening Day is a day of great anticipation.  It really doesn’t matter what game you may be chasing, that in itself is not the true spirit of the day.

Personally, it’s a time in my life to reflect on the memories of seasons past.  Memories with friends and family in the field, or just those early morning breakfast gatherings and the smell of coffee and bacon in the skillet.  The older I get, the more thankful I am of each season I’m able to just be part of it.  To be able to sit in the stillness of a crisp autumn morning, one with nature and watch the orange sun peek over the horizon is nothing less than a blessing.  Squirrels cutting acorns from the tree tops to the deer below, owls hooting, blue jays singing, and turkeys flying from their morning roost are all part of another daily routine of morning activities in the autumn woods.

I’m often asked by the unfortunate people of this world, how I could rise so early in the day and search my way through the darkness of the forest to sit on stand all morning not guaranteed anything but the rising of the sun only to return home empty handed.  I just tell them I’ve never once returned home empty handed but they never understand.  Opening Day has come again, so don’t miss the opportunity of the rest of your lifetime.

Show Me the Money….

Most of us have heard stories about the lucky guy who bought some recreational land and then paid for it all by thinning the timber or selling the mineral rights. But in reality, that just doesn’t happen very often. For most of us, if we are going to own land, we’re going to have to figure out a way to pay for it.

But with a little know-how and some creativity, you may be closer to your dream than you realize.

Let’s look at the options.

Traditional mortgage lenders are where most of us have experience in borrowing money for real estate. Unfortunately, most of these lenders have little experience or interest in raw land. For buying land, I think you will find an easier road to borrowing if you look elsewhere.

I’ve always had good luck with smaller community banks, particularly ones where the ownership is located in the same area as the land. These people know the area and usually understand land as an asset. For someone with good credit and a steady paycheck, this is a good place to start. Loans can be structured with monthly payments, quarterly payments or annual payments, and can be set up as either interest-only or principle and interest. Rates are generally higher than those for a home mortgage, and most banks are only going to finance about 75-80 percent of the purchase price.

As far as commercial lenders go, there is no better avenue (in my opinion) than the Farm Credit system. While originally oriented toward agriculture, this network of cooperatives (which are partially client-owned) offers loans on land to anyone, not just farmers. Loan structures are similar to mortgages, with 20-year amortization and 80 percent loan-to-value being the maximum. You will be required to qualify for any loan, just as you would with a mortgage, but some loans are based primarily on credit score, dramatically reducing the paperwork and speeding up the qualification process.

Some borrowers, however, just don’t look good on paper. Whether it’s due to bad credit, being self employed, or having recently changed jobs, some people appear to be marginal candidates even though they have the means to pay for the land they want.

But all is not lost. Some landowners actually prefer to owner-finance the land they are selling. You just have to ask. Typically, owners who are willing to owner-finance have an undesirable tax consequence headed their way if they leave the closing table with a pile of cash. They can mitigate this through owner financing. You are still going to need some cash, of course, but quite often there is no credit check.

Owners usually secure their loan with your down payment and the structure of the contract. Often, they will use a “contract for deed” arrangement, where you don’t actually get title until you make the final payment. If you default on the loan, they get to keep your money AND their land. For most landowners, this is a pretty good guarantee that you will pay as promised.

One final option that most people don’t consider is using your IRA as a source of cash for your purchase. In addition to financial instruments, your IRA can also invest in land. Now, most IRA trustees or “holders” don’t allow land as an investment, but some do. If you have money sitting on the sidelines waiting for the stock market to come back, you might consider this.

Of course, be sure to discuss any of these options with your attorney and financial advisor to make sure that you fully understand all the legal, financial and tax implications for your particular situation.

Land is a Wise Investment

Land investing has proven to be a wise and successful strategy over the years.  By placing your money in land, you not only gain the financial benefits of both long term and short term investing, but you also gain the added value of use.  You do not get to use your stock certificates on the weekend to cook out and your mutual funds during hunting season.  It is the power and wisdom of land investment that enables you to reap benefits both now and later.

One of the core principles of the Greenwood Project is that land is an investment that is to be enjoyed.  When you choose to lock your liquid assets in land, you are getting more than a piece of property,  you are getting a place to experience the outdoors or create lasting memories.  Land is the only investment vehicle that will bring you more than just revenue; think of the time spent riding the ATV, Cooking out with family, or just camping on the farm.  The enjoyment of the land ownership experience is an important component to investing your hard earned money into land.

The problem that most of us have when it comes to buying land is we feel lost and the task seems overwhelming.  The fear of failure has stopped many investment deals, some of which may have been highly profitable.  The reality is we are not born with the knowledge or competency to make these investment decisions and so we back away from the opportunity.  There is a tremendous gap that exist in the minds of many “would be” land investors when it comes to the HOW of land investing.

It is the purpose of Greenwood Project to bridge the gap and make the connection between “I want to. . .” and “I did it . . . .”  The Greenwood Project has an entire educational series on how to buy land.  Land investment is only difficult if you do not have the right resources and knowledge and “Maximizing the Land Ownership Experience” is the resource you need to acquire the knowledge necessary to make that investment in land you have always wanted.

With Ownership Comes Responsibility…..

The term “Conservation Land Buyer” is routinely used to describe people who use their financial resources to acquire lands for the specific purpose of conservation.  These folks whatever their circumstances are using their financial means (which is quite often large) to “give back” or protect the earth in a way that most of us see as unattainable.

It is a noble gesture.

It is not, however a gesture limited to “nobility” or the affluent.  In fact, anyone who purchases, inherits, or already owns land, regardless of their financial means or the size of their acreage has a RESPONSIBILITY to care for it in a way that conserves it for future generations.  But here’s the good news.  Stewardship of our natural resources…..and by that I mean conservation oriented land management….not only enhances the natural resources, but the land value and the ownership experience, as well. The better you treat the land; the better the land treats you!

And here’s more good news…….You don’t have to be obscenely wealthy to play the game.  In fact, the large majority of privately held land in this country is not the playground of the wealthy, but rather the backyards, hunting lands, gentleman’s farms, and retirement getaways of the ordinary.

People just like you.

But here’s the best news.  Ordinary people……..doing ordinary things…..can achieve extraordinary results with a little land and a little know-how.  Whether you want to reduce your carbon footprint, enhance wildlife habitat, maximize the forest resources, restore native grasslands, or simply to have a nice place to retire…..you can make a difference!

So, get involved.  Get educated.  Get connected to the resources available to you.  Find out about wetlands management, wildlife habitat improvement, conservation easements, stream side management, Conservation Reserve Programs, The US Forest Service, NRCS, The Farm Bill, USDA, State and Local conservation programs.  Find out how these programs can benefit not only the land, but the landowner, as well.

If you want to know where to get started, just dig around on this site for lots of great information.  If you don’t find what you are looking for here, we’ll find it for you.  Just call us, or post a comment below with your question.

If you give……you get.

Mother Nature is Waiting….

It’s still dark when the alarm clock rings. You’ve got to get moving to beat the sunrise. You crack the door to feel the October morning air. A crisp 50 degrees. Perfect weather for the morning sit. To the closet where you grab your favorite fall clothing that you’ve had now for 12 years. The colors of your clothing still blend in perfectly with the autumn woods after all these years.

A cup of coffee and a small fanny pack for the morning and you are out the door quietly not waking the family. Your place of solitude isn’t far from the cabin so you will safely beat the uprising sun by a few minutes.

As you grab your seat, you can see the orange horizon and the tree silhouettes beginning to form. The weather is perfect. The stillness of sunrise is breath taking. There is only the sound of a few early rising birds and then one hungry squirrel in the fallen leaves on the ground nearby.

As the sun rises above the trees, the crunching sound of leaves distinctly becomes evident. To your right is the same doe you saw yesterday feeding under that same white oak. You wonder to yourself how many of your friends in Surburbia have ever experienced the true beauty and peacefulness of the great outdoors. It’s just you and nature. No traffic, no neighbor’s dog, no occasional siren. None of the animals are even aware you are there. 

How wonderful it is to be a 45 year old woman in a gazebo with a cup of coffee and with her favorite book watching the sun rise………..

Everyone should experience the beauty and the solitude of the great outdoors. Whether it be from twenty feet up in a tree stand deep in an white oak hollow or only twenty yards from your back door sitting in your gazebo, the true beauty of nature can and should be experienced by all of us. Mother nature is waiting and she still doesn’t charge admission.

They Ain’t Making Any More of it….

Bet you’ve heard that at some point in your lifetime. It’s an old cliche’that will stand the test of time. At the moment the first map of the world was plotted, the birth of the idea, and the cliché that land isn’t being created any longer, has been known by all human kind.

One of the first and few things I actually learned at the local school of higher knowledge was the theory of supply and demand. Amazingly land may be the only investment in which the supply number is one that can’t change. You can’t say that for houses or condominiums or office buildings. You can’t say that about livestock, stocks, cars, or even baseball cards. The supply of these investments is determined by the demand hence, the greater the demand, the greater the supply.

However, the greater the demand for land, the greater the cost of land. 

Simply put……the supply of land never changes. It can’t! From a land investor’s perspective, it’s a beautiful thing. But land ownership is much more than an investment. The reality is most land owners did not become land owners primarily out of the need for an investment or financial gain. Most land owners became who they are by an instinctual need for relaxation, recreation, conservation, and even some through America’s greatest way of gaining financial worth,….inheritance.

But if you ask, most of them will tell you that the investment aspect of their ownership experience is merely the icing on the cake.

Some cliché’s will always remain true, “Land, they ain’t making anymore of it.”

Greenwood Project Overview

Maximize the Land Ownership Experience

The Greenwood Project objectives for 2009 and beyond center around using our experience and knowledge (derived from years in land investment, conservation, and a love of the outdoors) as the foundation to produce educational and inspirational material for those who aspire to own real estate, particularly unimproved property (timberland and recreational property).  We feel that most folks who own land or aspire to do so fall in one of three “motivational” categories – Investment, Conservation, or Outdoor Lifestyle.  Most see the benefits associated with their motivation, but fail to see the potential in the other two.  Maximizing return on investment is best accomplished by blending all three.  Increase wealth, enjoy the outdoors, and leave the planet better than you found it…..what could be better?

Our philosophy is simple – Land ownership and the responsible stewardship of our natural resources is an undeniable path to achieve BOTH your financial and quality of life goals.

We believe that most people aspire to own land.  They dream about owning a little place in the country, a get away, a place to retire, something to leave the kids, or an investment with fringe benefits.  Most people, unfortunately, will never make good on the dream of owning land, not because they don’t want to, but because they lack the knowledge and experience to connect the dots between “I want it” and ” I have it.”

The Greenwood Project can help connect those dots.