Hi! My name is Dave Repka. I started “TheUndeveloper” blog site as a WordPress.com site in early 2010. The blog has chronicled my journey from real estate developer to renewable energy investor, developer and evangelist. Over the past year and a half I have been drawn to the bright light of a renewable, sustainable, energy independent future. The culmination of this journey is founding Bison Energy Partners with partners Tom Walker and Nick Pavonetti.
Bison Energy Partners invests in renewable energy projects. We are specifically focused on providing “pursuit capital” for “best in breed” independent project developers to get site control, conduct due diligence and entitle large scale projects in which the energy will be sold into the power grid or to an credit worthy off-taker (power purchaser). We are agnostic as to the fuel source: solar, wind, biomass, waste-to-energy, geothermal, etc.
Our exit strategy will be the sale of the project to a highly capitalized investor higher up the food chain for a healthy multiple of our investment or in the alternative to enter into a joint venture agreement with the project developer to construct a machine that generates electricity and enjoy a long-term revenue stream from owning this machine.
We are working on projects with a very high probability of achieving a Power Purchase Agreement (PPA) for 15-20-25 years. This PPA is like a long term lease on a piece of real estate with a credit tenant. Please visit our site. We believe that we have cracked the code on how to select projects for the best risk adjusted returns. Looking to network with folks that are interested in protecting America’s future by embracing energy independence… are you ready to join us?
Spend 2 minutes and 38 seconds to learn more about SRECs… this video was created by Solar Evangelist, One Block Off the Grid.
Written by Grant Glessing
Timber and timberland have traditionally been investment vehicles for institutional investors because of the amount of capital required. There are however, excellent opportunities in today’s timber and timberland investment marketplace for small retail investors. These investments provide individuals with the benefits of a diversified portfolio, as well as opportunities to invest in some of the higher yield precious woods that may be too small and specialized for large institutional investors. In this article I will address some of the most frequently asked questions about timber and timberland investments and describe the benefits these investments offer individual investors.
What are the benefits of investing in timber?
Return on Investment: Timber has outperformed all major stock markets over the past 25 years with an average annual return of 15% as measured by the National Council of Real Estate Investment Fiduciaries (NCREIF). The timberland index ranks timber first in growth, as $100 invested in timber in January 1987 would have grown to $2,190 by December 2008.
Inflation Protection: Timberland has historically provided good protection in times of inflation. It is widely recognized as one of the best ways to protect wealth in times of economic turbulence. Uncorrelated to Other Assets: Timberland investments tend to move counter-cyclically with stocks and bonds. This allows the investor to offset risk while at the same time providing portfolio diversification, especially during times of extreme market volatility.
Environmental Benefits: Responsibly managed timberland is a green investment, providing many environmental benefits such as carbon sequestration, watershed protection, and animal habitat for the socially responsible investor.
What are the risks?
Physical Risks – Although catastrophic events such as fire, pest infestations, and violent storms often get a great deal of media coverage, they actually account for a very low percentage of timberland losses. As with any investment vehicle individual investors should understand the physical risks and uncertainties associated with the particular timberland investments they are considering.
Liquidity – Timber is not an investment to be flipped for a quick return. It is best suited for the focused long-term investors who does not need ready access to their capital.
[BLOGGER NOTE: TheUnDeveloper is an advisor to private equity groups made up of high net worth investors that purchase and operate joint ventures on institutional grade timberland plantations greater than 10,000 acres.]
By JEFF OPDYKE
For some people, money does grow on trees.
Whipsawed by gyrating markets in recent years, some investors are taking root in a little-understood asset class that since 1987 has handily beaten stocks—timberland. A dollar invested in the National Council of Real Estate Investment Fiduciaries’ Timberland Index then was worth nearly $21 at the end of 2009, a compounded annual return of more than 14%. That same dollar invested in the Standard & Poor’s 500-stock index was, with dividends included, worth $7.83, a return of about 9.4% a year.
Returns aren’t the only attraction. Timber historically has tracked the consumer-price index, thus serving as an effective inflation hedge. And aside from timber sales, timberland can generate income through hunting leases, watershed rights, energy-exploration easements and other uses.
[BLOGGER COMMENT: Additional income can also be achieved by selling carbon offset credits. Currently in discussions with several owners of 10,000 or more acres of timberland in multiple locations worldwide to create an income stream by selling the carbon sequestration ability of their timberland to household name companies looking to “green” their image.]
Near the end of the video we learn that forest owners are able to resist deforestation and still create an income stream for their families.
Creating an economic incentive to preserve forests for future generations by selling carbon offset credits works much better than old-fashioned guilt or appealing to the farmers “higher instincts”. Carbon offset credits are a little understood financial mechanism that gives land owners a substantial financial incentive to “do the right thing”.
Thirty-seven industrial countries have committed themselves to reducing greenhouse gases and actively promote the use of carbon offset credits. They have agreed to The Kyoto Protocol which caps the emissions of Green House Gases (GHG) at predetermined levels. If they produce more GHGs they need to acquire carbon offset credits from other third parties. All signs point to the USA eventually mandating stricter GHG compliance standards and possibly enacting a Cap-and-Trade system. According to a recent Wall Street Journal article, “the Obama administration says it will curb greenhouse-gas emissions using the Clean Air Act if Congress doesn’t act, and the Environmental Protection Agency has been pushing ahead with rule making.” There are over 1,000 leading foreign & domestic industrial companies buying Carbon Offset Credits.
Watch this 6min 12sec video to learn more about what Cap-and-Trade means.