Today we’re going to talk about long term investing with a tree farm.
Don’t count out the tree farm as an investment. I’m loving my pine plantation. It’s where I get my meat.
Before we can really talk about why I suggest you buy a tree farm, I need you to change the way you view your business. I know your business is your baby and you love it but you need to detach yourself.
You are your business.
Your business is an investment.
Ultimately, your business is an investment. It pays you dividends. Your business’s real purpose is to generate revenue for you.
If you’re keeping several streams of income, you’re free to start thinking about the long game. You don’t have to worry about paying the bills anymore.
You’re past that.
You can start to visualize where you’d like to be in the future. You can start to look at longer term investments because you don’t need more money today.
The Tree Farm Example
Several years ago I was introduced to tree farming. My foundation, my original business, was in convenience stores. Tree farming is a completely unrelated endeavor.
Operating several pine plantations has nothing to do with the c-store business.
Never forget that your past doesn’t determine your future. You have to be looking for new opportunities everywhere. If you’re not changing, you’re not growing.
A tree farm is a long haul investment with a lot of options for making money.
You can clear cut the property every fifteen or thirty years, depending on whether pulp wood or saw timber are more profitable at that time.
You can lease the property to hunt clubs in the meantime and use that money to pay the property tax.
You can take out a loan to buy the property, then clear cut the property. Timing it right means that the sale of the wood will nearly pay off the loan.
Your only real expense on the land is the difference between the amount of the loan and the profit from the trees. If you’re also leasing the land to hunt clubs, the overall expense on the land is even less.
In a very short time you’ll have essentially acquired the land for free.
You can then re-plant the trees and the government will pay you nearly half the cost of re-planting because it gives politicians a way to keep hippies happy.
Hunters get to hunt and you get paid. Politicians get a vote and you get paid. Tree-huggers get to hug trees and you get paid. Everybody wins.
You have all these options because you’re not worried about how to pay the bills. You can start to make tomorrow’s dollar today instead of saving your life away.
You already know that building a business takes time, and you’re free to do it because you already put in the work once. The urgency is gone. Experience will do that to you.
When I started Business and Bullets, someone told me that a website was a long term investment.
After my experience in tree farming, making money online is a relatively fast process.
I already covered my bases with my first couple of businesses, so it’s not even a concern. The beauty in that is that I don’t have to cater to anyone I don’t like. I don’t have to kiss anyone’s ass.
My initial investment in Business and Bullets was enough to cover its expenses for twenty years. I can run this site for two decades and never worry about whether or not it makes a single red cent. That’s freedom, friends.
Add new streams of revenue to pay the you of today.
Add new long haul investments to pay the you of tomorrow.
A tree farm is an excellent way to pay both.