HOW TO USE PPIC COMMITMENTS TO BUY OR SELL TIMBERLAND
Ninety-five or more percent of the persons or groups who ask PPMC for a firm PPIC commitment own their lands outright. The lands may be encumbered by mortgages, but the timber is not committed to management by a government agency or timber company. The owners are principals just as PPMC is a principal, and if they like PPMC's offer, they can accept it without waiting for permission from or actions by others.
Firm commitments of this kind require lots of work on the ground by PPMC's foresters, quite a bit of office work developing the appraisal, and maybe some legal work by its lawyers. Nevertheless, PPMC makes these commitments without charge or obligation, even if for some reason its offers are not accepted.
PPMC commitments always require that control of the land be delivered to it now or in the very near future so they always contain deadlines. PPMC is not trying to pressure landowners. It's just that the commitments are based on timber prices and costs that change constantly and that site-prep must be completed and custom-grown seedlings planted by certain times each year. PPMC must make its annual payments whether or not seedlings are in the ground, so it cannot wait for action at some indefinite future time.
On the other hand, PPMC's commitments to substantial, annual cash flows can be valuable to anyone who wants to buy or sell land, and PPMC will make such commitments. They will always contain deadlines because the calendar has such a big effect on its operations. PPMC cannot make them without charge or obligation, however, because this means that the actions of unknown third parties are needed to accept its offers. For such commitments PPMC must charge somewhere between $500 and $1,500, depending upon size of the tract, but will refund this charge if its offer is accepted by the deadline in it.
If you want more information on this, call us at 800+455-4568.
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