The Forestry Forum is sponsored in part by:

iDRY Vacuum Kilns


Forestry Forum
Sponsored by:


TimberKing Sawmills



Toll Free 1-800-582-0470

LogRite Tools



Norwood Industries Inc.




Your source for Portable Sawmills, Edgers, Resaws, Sharpeners, Setters, Bandsaw Blades and Sawmill Parts

EZ Boardwalk Sawmills. More Saw For Less Money!

STIHLDealers.com sponsored by Northeast STIHL


Woodland Sawmills

Peterson Swingmills

 KASCO SharpTech WoodMaxx Blades

Turbosawmill

Sawmill Exchange

Michigan Firewood, your BRUTE FORCE Authorized Dealer

FARMA


Baker Products

ECHO-Bearcat

iDRY Wood Lumber Vacuum Drying for everyon

Nyle Kiln Dry Systems




Author Topic: Mill lease  (Read 704 times)

0 Members and 1 Guest are viewing this topic.

Offline otternorth

  • member
  • *
  • Posts: 10
  • Location: Chase, Alaska
  • Greatings from the north
    • Share Post
Mill lease
« on: April 24, 2019, 03:28:34 PM »
Has anyone here leased a mill on either side of the transaction?
A neighbor wants to buy my mill and I have proposed a lease.
This is a remote off road site. Hauling my mill In was a big deal.
Most of my milling is completed (standing dead spruce) but will continue to mill as additional trees die and are harvested. This will be occasional use.
The neighbor will start milling his dead trees this summer but wants the mill to stay on his site with me being able to use it as I need.
Iím in a quandary.
Opinions?
Moved to
Alaska where its warmer and less snow than where Iím from......

Offline luap

  • Full Member x2
  • ***
  • Posts: 195
  • Location: western Upper Penninsula
  • Gender: Male
  • Not as good as I once was
    • Share Post
Re: Mill lease
« Reply #1 on: April 24, 2019, 06:20:35 PM »
A very similar proposition was made to me once. The other party would buy my mill and He would saw any logs I needed milled. It had two many negatives from my perspective. I would have to haul the logs, it would be on his schedule, and then haul lumber home. Even though I did not use the mill much I still wanted it available and I have used it more as time has passed.

Offline longtime lurker

  • Senior Member x2
  • *****
  • Posts: 1317
  • Location: QLD, Australia
  • Gender: Male
    • Share Post
Re: Mill lease
« Reply #2 on: April 24, 2019, 06:36:48 PM »
I have vendor financed equipment in the past, both as a buyer and as a seller. It all comes down to two things really:

- does this person look after their equipment? Thats not about having a clean car, or fancy toys its about grease and machinery kept in fair working condition.
- does this person pay their bills? 

If they meet those criteria then its a maybe, if they don't then its a definite no.
The quickest way to make a million dollars with a sawmill is to start with two million.

Offline Stuart Caruk

  • Senior Member
  • ****
  • Posts: 458
  • Location: Ridgefield WA USA
  • Gender: Female
  • Woodmizer LX450 DieselStationary timber processing
    • Share Post
Re: Mill lease
« Reply #3 on: April 24, 2019, 08:34:07 PM »
I learned the hard way to the tune of about $85k once....

If you sell a machine on payments to a customer, and they go bankrupt, the machine is part of the estate, unless you want to pay the estate the equity they contributed before they went bust. Given that I could build another machine for less than paying that and getting a used machine back, I went through the process. At the very end, the IRS stepped in, and all of the combined taxes were more than the assets, so only the government got paid.

Now had I leased the machine, with a $1 buyout, the machine would have been mine and I could have picked it up after their payment was past due.

My lesson was never to sell a machine on a contract, only on a lease, with a serious lease initiation fee.
Stuart Caruk
Wood-Mizer LX450 Diesel w/ debarker and home brewed extension, live log deck and outfeed rolls. Woodmizer twin blade edger, Barko 450 log loader, Clark 666 Grapple Skidder w/ 200' of mainline. Bobcats and forklifts.

Offline otternorth

  • member
  • *
  • Posts: 10
  • Location: Chase, Alaska
  • Greatings from the north
    • Share Post
Re: Mill lease
« Reply #4 on: April 28, 2019, 09:01:40 PM »
Thank you for the replies.
They were helpful in determining not to sell or lease.
Moved to
Alaska where its warmer and less snow than where Iím from......


Share via delicious Share via digg Share via facebook Share via linkedin Share via pinterest Share via reddit Share via stumble Share via tumblr Share via twitter

xx
Gas drilling lease?

Started by dutchman on General Board

2 Replies
780 Views
Last post July 01, 2008, 10:30:11 PM
by Ironwood
xx
Can you lease a Woodmizer?

Started by Dave Shepard on Sawmills and Milling

14 Replies
9145 Views
Last post April 19, 2007, 08:43:14 AM
by bull
xx
example timber lease agreement?

Started by ZHARZHAY on Forestry and Logging

4 Replies
5763 Views
Last post August 16, 2004, 07:29:20 PM
by Ron Scott
xx
land lease for deer hunting

Started by Polly on General Board

3 Replies
1382 Views
Last post July 13, 2008, 02:44:07 PM
by Norwiscutter
 


Powered by EzPortal