Referral
I met a RE investor from out of town. He has a property here in my home town & asked me about a contractor to do some work for him. How can I do the referral to get a finders fee for finding a contractor to do work for this out of town investor. Or shall I try to manage the contractor for the out of town investor. Should I write up a contract that states I get a finders fee to be paided by the contractor or the out town investor. I have a contractor in mind that I would let have the business, but I want to make sure I get paid by the contractor for getting him the business.
What shall I do? Anyone ever done anything like this, I am open to any ideas. Thanks
How can I get the contractor to pay me. Shall I put it in a contract. How should I word it. I dont want the contract to take the money & run and not pay me for the referral.
Sounds Ok, I had a GC I found some work for & he never paid me anything. How can I avoid this if I decide to refer this GC.
By referring a contractor to the investor one of them may refer you to someone else down the road, that is how it is supposed to work. No kickback invloved.
You should get the referral fee from the contractor.
I saw a show on a landowner who selectively harvested his timber- he was able to prove that the land produced substantially more board feet of timber in a year when he harvested less than 1% a year than if it were all cut at once and replanted, which is the conventional wisdom. The quality was also much higher. Not sure the additional economic return was better than cutting it all at once, replanting, and investing the money, but he lived there and enjoyed the benefits of a beautiful forest full of wildlife- certainly the environmental benefits were substantial, and carbon credits could make it economically better also.
But this is a long term, even multi-generational strategy. We are doing something similar, harvesting high value wood off our land when the trees die. Again, timber pirates are a real problem.
Although we may in theory be growing more timber than we use (does this include our massive imports?) the quality of this newly grown timber is nothing compared to the quality of what we are and have taken- ask any carpenter and they will tell you quality has gotten worse even in recent years, and anyone that rehabs old houses knows how much harder, stronger, and heavier old wood is than the same species bought these days.
Chris
My aunt timbered land she owned (West by God Virginia). Her take was not that great (FAR less than 1k an acre) for the amount of land cut (50plus acres), but the trees there where more run of the mill oak and maple (very few walnut and other exotics that bring alot of cash). It was worth it for her since the land was just sitting there producing nothing for her (and she needed cash for farm improvement). It did reduce the value of the land when she sold it (probably was ahead by timbering it first then selling land).
My father has been a forester in the Carolinas/Tenn for over 40 yrs. While its not my specialty a little of his knowledge has been handed down. The general rule is that timber naturally grows at 7-8%/yr and thus yr investement grows accordingly. All and all not too bad. It of course depends on conditions and type/quality of tree. A few yrs back the banks caught on to these investment results and started buying large tracts of timber to hold as investments. Given yr location I would assume its mainly a "soft" wood such as southern yellow pine. The value of this largely depends on the amount of saw timber vs. pulpwood. The more saw timber the more valuable. You can hire an appraiser to appraise the value of the stand or you can simply get quotes from loggers. The appraisal will cost you but its obviously more objective and unbiased. There are several options instead of clear cutting nowadays. There is one option that is used to thin stands where the land is being developed for residential purposes that is popular around here.
My suggestion is you contact to limited company or big residency area which are being renovation than they will give you, there you can find out unused and unmatched timber thing as very cheap.
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