New York State · United StatesLand · Value creationCompleted
55 acres.One transformation.
Monetising an existing resource, creating access, preparing the land and exiting to a developer.
- 55 acres
- ≈ 22.3 hectares
- $130,000
- Acquisition
- $30,000
- Net timber proceeds
- $55,000
- Servicing + approvals
- $690,000
- Sale
- ≈ 9 months
- Acquisition → exit
01The opportunity
The woodland was hard to reach and couldn't be treated as land ready for use.
The strategy combined timber and land preparation. Selling the timber generated $30,000 net — offsetting the cost of the access roads.
$55,000 then went into servicing and approvals, before a bulk sale to a US developer for $690,000.
02The strategy
01
Acquire↓
02
Harvest timber↓
03
Build access↓
04
Service & approve↓
05
Sell
03Execution
$30,000
Net timber proceeds
= $30,000
Access roads funded
$690,000
Bulk sale
04Financial snapshot
- Acquisition
- 130 000 $
- Acquisition / legal
- 5 600 $
- Access roads
- 30 000 $
- Servicing + approvals
- 55 000 $
- Net timber proceeds
- –30 000 $
- Broker commission
- 27 600 $
- NYS Transfer Tax (0.4%)
- 2 760 $
- Legal + closing
- 3 000 $
- Financing — equity only
- 0 $
- Total net known cost
- 223 960 $
- Sale
- 690 000 $
Result before tax
466 040 $
- Financed entirely with equity.
- Result before tax. Taxation not presented.
05Timeline
Acquisition
55 wooded acres, $130,000.
Timber & access
Timber sold, access roads built.
Preparation
Servicing and approvals.
≈ 9 months
Bulk sale to a developer.
06Key takeaway
Raw land and prepared land are not worth the same. The work is to close that gap at the lowest cost.
Historical performance shown relates to specific operations and is no guide to future performance.