Why Maderas Sostenibles and Nicaragua?
We offer a variety of ways to invest in reforestation. Our passion is planting trees.
Our timber investments are completely scaleable.
Our planting and maintenance contracts provide all necessary services from the acquisition of land to harvest.
Our milling and export operations ensure the maximum return for your investment when it reaches maturity.
We operate in a familiar area where our people have decades of personal and professional contacts.
SW Nicaragua provides perfect growing conditions for teak and native hardwoods.
Land costs are significantly less than similar land in Costa Rica or Panama.
Nicaragua’s government is committed to reversing centuries of deforestation and to the restoration of the Nicaraguan forest. Policies and laws favor the forestry business and investment in reforestation.
Long Term Strategy
Timber particularly suitable for SEP, retirement funds, or other long-term positions..
Tropical hardwood growth cycles run 20-25 years, consistent with most retirement, pension, or long-term investment objective
The initial investment is relatively large, but the subsequent annual investment is minimal.
In years 8-16 thinning begins, the plantation becomes self-sustaining & begins to provide revenue.
Timber is an excellent way to diversify any portfolio, a feature particularly attractive after the recent collapse of the typical equity investment portfolio.
Short Term Opportunities for Profit
While tree farms are typically considered long-term investments because of the growth cycle, plantation timber investments today also present opportunities for short-term profit.
Once established and certified, a hardwood plantation is an asset that can be sold in the open market before the growth cycle completes.
A short-term business model that markets the plantation at 5 years or 10 years is just as viable as a long-term model that manages and holds the timber to maturity.
The market for short-term sale is projected to improve with the development of carbon credit funds and the continued growth of timber investment funds.
An established plantation can be resold in smaller units to investors who seek the security of timber but cannot afford a large plantation. The insecurity of traditional equity markets make timber attractive to portfolios of any size.
