COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675870.226.4400 WWW.BROWNLANDANDTIMBER.COM...
COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675870.226.4400 WWW.BROWNLANDANDTIMBER.COM...
COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675870.226.4400 WWW.BROWNLANDANDTIMBER.COM...
COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675870.226.4400 WWW.BROWNLANDANDTIMBER.COM...
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Brown Land & Timber Co. Investment Strategy Major Components

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Major components of our "class jump" investment strategy that in 2010 had an average annualized ROI of 18.24%. This strategy combines 2 asset classes into one as a non correlated, hedge against inflation. This safe, secure real estate investment avoids market risk with timber that grows from one "market" into another, like silver turning into gold, and completely avoids total loss with land.

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Brown Land & Timber Co. Investment Strategy Major Components

  1. 1. COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675870.226.4400 WWW.BROWNLANDANDTIMBER.COM THE MAJOR COMPONENTS OF “CLASS-JUMP” LAND & TIMBER, WHICH MAKE THIS ASSET CLASS THE PERFECT NATURAL RESOURCE INVESTMENT I. Uncontrolled Population Expansion II. A Finite Amount of Land that is both Arable and HBU III. Eminent Continuing Urban Sprawl IV. A Special Asset Class called “Class-Jump Timber” that grows at 10% or more and Changes from one Commodity to another Commodity every 8-years, …like Silver to Gold V. Safety – Less Risk than an A-Rated Bond, because you cannot lose your land and the probability of timber loss is less than ½ of 1% VI. Liquidity – 100%VII. Return – 15% Average Annual Return over the last 33-yearsVIII. Worry-Free Ownership – The Manager Pays the Investor to Manage the PropertyPopulation: It took the United States approximately 200-years to get to 100 million people. Then, 50- years to reach 200 million. And only 35-years to add the last 100 million. Every 4-years the world is increasing in population by 300 million (the total current population of the United States). There is not enough arable land to grow food for the world’s future population. From Wikipedia File: Population curve.svg Page 1
  2. 2. COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675870.226.4400 WWW.BROWNLANDANDTIMBER.COMArable Land: Arable land is land that can be used for growing crops. It includes all land wheresoil and climate are suitable for agriculture, including forests.HBU Land: Highest or Best Use (HBU) Land is a concept in real estate appraisal. It states thatproperty value is directly related to the use of that property. HBU is a designation used toidentify land that would potentially have a higher value if used for a different purpose. This island that is most likely to “Jump-Class” from timberland to residential or commercial land.Urban Sprawl: This is the result of a city spreading outwards on to rural land. The RockyMountain Elk Foundation estimates that North America is losing over 2,500-acres PER DAY ofElk habitat due to Urban Sprawl.A Special Asset Class of Timber called “Class-Jump Timber”: This Asset Class grows at 10% ormore in volume every year and changes into a Different Commodity every 8-years, …like Silverturning into Gold. Brown Land & Timber “Class-Jump Buying Strategy” STAGES OF A FOREST Lumber Disposition Chip-N-Saw GROWTH Pulpwood X Acquisition AGE 0 X 16 32 50 EMERGING GROWTH MATUREBrown Land & Timber Company’s Unique Timber Investment Strategy is called a “Class-JumpBuying Strategy”. It is unique compared to traditional Foresters and other Timber InvestmentManagement Organizations (TIMOs). Page 2
  3. 3. COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675870.226.4400 WWW.BROWNLANDANDTIMBER.COMWhile traditional timber managers focus on growing the most raw material per acre per year;We focus on one thing; …making the most money per acre, in the shortest period of time.Therefore, we target the second 16-year Stage of a forest. During this Stage, timber changesclass from one commodity into another commodity 3-time. This Jump in Class means big jumpsin price per ton for the investor, AND high returns for our clients.Safety: This Asset Class has Less Risk than an A-Rated Bond because you cannot lose your landand the probability of timber loss is less than ½ of 1%.Liquidity: Because we purchase individual tracts for our clients that average less than 80-acres,this real estate can be sold at any time at a public or private auction and closed within 30-days.Return: The average annual return over the last 33-years has been 15% per year. “Class-Jump”Land & Timber 2002 to 2010 Year Land + Timber = Total Value 2002 $1,180 $ 262 $1,442 2010 $1,990 $1,555 $3,545 % Gain 8.58% 61.7% 18.24% 18.24% total annualized return (82% in Land – 18% in Timber) Next update August 2011 Source: USDA-All Cropland, Timber Mart-South, US Forest Service“Class-Jump Land” is “Agriculture Land”. It is easy to price this class of land without anappraisal, because the USDA publishes the average price per acre in every state every year.This data is based on hundreds of sales and cannot be refuted.If you had bought 1-acre of Arkansas agriculture land at its average value in the 2nd Quarter of2002, you would have paid $1,180 per acre. If you sold this land 8-year later, and received theaverage price per acre of $1,990, you would have received an annual return from your land of8.58%. Page 3
  4. 4. COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675870.226.4400 WWW.BROWNLANDANDTIMBER.COMIf you had bought timber on that land, which had 23 ½ tons of Pine Pulpwood, and 23 ½ tons ofHardwood Pulpwood at its average value, you would have paid $262. If you sold this timber 8-year later, and received the average price per ton, you would have received an annual returnfrom your timber of 61.7%.Your total cost would have been $1,442, and your total sale price would have been $3,545. Thismeans your total annual return would have been 18.24% per year.Worry-Free Ownership: Brown Land & Timber Company will lease the hunting rights from ourclient for the amount of the annual real estate tax. Then, sub-lease them to a reliable huntingclub, who we require to; Patrol the land, Maintain the Boundary Lines, Monitor the Land &Timber, and Notify us of any condition which affects the value of the land or timber.In addition, we Pay the Annual Real Estate Tax and provide an Annual Report concerning theCurrent Condition and Value of the Land & Timber.SUMMARY: “Class-Jump Land” is Arable Agriculture Land AND Land most likely to “Jump-Class”from timberland to residential or commercial land within the next 8-years. There is NO risk oflosing land.“Class-Jump Timber” is Southern Pine Timber growing on “Class-Jump Land” growing at 10% ormore each year, AND WILL jump in class into the next commodity class within 8-years. Timber Growth and Change in Class is not an educated guess. It can be accurately determined and predicted by measuring a tree.The value of “Class-Jump Timber” has always outgrown every drop in price throughout historybecause of biological growth and change in commodity class.The risk of losing “Class-Jump Timber” from all natural hazards, including fire, weather, diseaseor insects is less than ½ of 1%. This is a buy and hold investment that requires no fees,maintenance or management from the investor.Historical Records from the USDA and reliable timber pricing agencies validate the averagereturn from this Asset Class has been 15% per year over the last 33-years, including the savings& loan crisis, dotcom bubble and our current recession.“Class-Jump Land & Timber” is a historically proven, safe investment, which an investor hasalways been able to have “Worry-Free” peace of mind, knowing their money was parked wherethey could get back all their money plus interest every 8-years. Investors that bought “Class-Jump Land & Timber” didn’t wake up, like many of us, in September 2008, and find out theirinvestment was worth less than they paid for it. Page 4

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