Investors Are Still Paying Cash For Timber

There's an article in the Fort Worth Star Telegram this morning claiming that rural land has lost it's luster...except for timber.

'We all worry’

Real estate broker George Galloway, who lives in Aledo but has his office in Palestine, said he has plenty of buyers like Nixon.

Galloway hasn’t seen any slowdown and believes that his niche in timber properties may be part of the reason.

"In East Texas, things are still happening; it’s just not tethered as much to what’s going on elsewhere," Galloway said. "I think the biggest issue is we never went hyper-priced like the rest of the country. I don’t think East Texas ever left earth. It was starting to do that two or three years ago, but it never really did."

Galloway said many buyers find land that has both recreational and timber — an attractive combination. Palestine’s location also lures buyers from the Metroplex and Houston. But few of his customers are getting loans; almost all are cash buyers.

"We all worry," Galloway said. "I have a stock portfolio. I got my statement last weekend. I thank God for every acre I bought that I didn’t put into the market. Land is always a good hedge against inflation. Those trees growing out there are becoming more valuable while I sleep."

For the sake of disclosure (and also because I'm proud of him) the real estate broker in the article is my dad and Nine Frog Real Estate is his brokerage company. Check out his website, he's got some excellent articles that breakdown some practical aspects of investing in timber. Good job Pops.

Good luck out there.

TLT