How to earn timber REITs

Have you ever been to Flagstaff, Arizona? If not, I recommend a visit some time. Flagstaff is a quaint little town in the mountains of northern Arizona. The pines grow like crazy and blowing in the summers always a cool breeze.

It 's a nice escape from the desert of Arizona. . . especially in summer, when more than 110 degrees. Take a short summer in Arizona and you know exactly what I mean.

Every summer, like a child would head up tothe forest.

My parents would drag me and my brothers, our dogs to you, and for a week to supply the cabin. My grandparents do not have the location on the outskirts of Flagstaff. I have great memories in the summer to explore the forest, enjoy swimming and fishing in the lake, and only nature.

I loved it so much, I'm starting to buy a place of my look. . .

Sometimes I go deep into a small one. Do not laugh. But I found avery interesting site just the other day. A broker was advertising for sale 13,000 acres of forest in Pennsylvania (see I told you, I think big). The images of the property are beautiful. Rolling hills and large parts of the wood. The structure was also with all the natural gas, oil and mineral rights intact.

The only problem was the asking price. . . a mere $ 32,000,000.

If mathematics is to quickly sell the property for onlyapproximately $ 2,400 per acre. Is this a good deal? I do not know, but I was determined to find out.

The broker noted the property was generating $ 150,000 euro a year in income from the letting of camping fees. Sounds good, until a return is less than 1% to achieve. (In fact, it's less than half of 1% per year).

It is not very exciting.

However, the wood can be a great investment -. It is very exciting (if you know it as) 's like a farmer with his owngreat harvest. Each year the trees grow bigger and bigger. Each season has its value increases. Someone with good capacity for agriculture and forestry could maybe create a substantial income.

The thought of buying this property is very attractive.

But I do not know the first thing on management of the timber. . . Oh, and I'm just a bit 'behind the purchase price of $ 32,000,000. But I know of a way cheaper and easier to learn to invest in wood.

What am Italk to you?

REIT wood, of course. These companies have to buy to set up and manage large amounts of wood. You can buy the REIT in exchange for a few dollars each. No contracts or complicated negotiations. Just use your regular brokerage account.

This REIT Tree give you ownership of some of the best properties of wood in the world. They come with first class management. . . who know what they are doing. And most importantly, pay a greatDividend (some more than 4%).

So here are the ones I like.

The first REIT Rayonier (RYN). You have more than 2.6 million hectares. Rayonier also has two other companies, in a traditional real estate development and the other in the production of fiber (not a pure play Tree-REIT). Its market capitalization is th little more than 6.3 billion U.S. dollars with a little 'quick math, you can buy the company for about $ 1,392 per acre.

The second company is Plum Creek(PCL). We have 8 million hectares of forest. Its market capitalization is 8.5 billion U.S. dollars a huge th But their estates are large. Trade flows of the company at about $ 1,062 per acre. Not bad.

The last company I found Potlatch (PCH). You just its 1.7 million hectares of forest. Its market capitalization is $ 1900000000. This means that every acre of property that is itself a value of $ 1117.

I think my little 'purchase of 13,000 acres of forestPennsylvania $ 2,400 per Acre is not a good deal after all. These three plants are cheaper (per hectare), and even pay good dividends. If the idea sounds appealing from the forest itself to look more closely at these REITs. .

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