A Guide to Timberland Loans

Timberland is a booming industry in the United States, and one of the biggest sectors of manufacturing. The American forestry industry and forest products industry together employ some 953,000 people.

However, you don’t have to be part of the industry to benefit from a profitable timberland investment property. Many unaffiliated companies and individuals choose to purchase timberland simply because it is such a promising investment. In fact, timber is the fast-growing alternative investment category in the nation.

If you’re interested in purchasing timberland for sale in Florida, here are some tips on navigating the timberland loan process.

Determine Your Budget

As with any significant purchase, it’s prudent to crunch some numbers and determine exactly what you can afford. This includes understanding the nature of the investment, the lumber cycle, and the costs associated with the property.

Fortunately, timberland is a relatively low-risk investment since it is independent of the stock market and the growing population will always require lumber.

Compare Lenders

Once you have an idea of what you will need, start looking for a lender who can make those needs a reality.

There are a plethora of excellent timberland loan companies, and it pays to compare. Some lenders even offer loans with flexible payment plans and additional loan options for logging equipment.

Interest rates are typically determined by a variety of factors, including:

  • Federal Reserve policy
  • Inflation
  • The pace of economic growth

Minimum credit score requirements vary from lender to lender. Some establish official minimums but also award exceptions on a case-by-case basis. While a good credit score always works in your favor, don’t be discouraged if you’re not in that category. There will likely be a number of lenders who are still happy to do business with you.

Many lenders include a “Get Pre-Qualified” option on their website, so you can even kickstart your research process from the convenience of your home.

Consult Your Agent

Whether you are a first-time buyer or a seasoned investor, it is always helps to have an industry professional on your side.

Working with an agent when evaluating Florida timberland for sale can give you a competitive edge, from searching for the perfect property to helping you select the best lender for your timberland loan.

For more information about timberland for sale in Florida, please contact us today at 877-518-LAND, or complete our contact request form.