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.

1. COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675
870.226.4400 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-years
VIII. Worry-Free Ownership – The Manager Pays the Investor to Manage the Property
Population:
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
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2. COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675
870.226.4400 WWW.BROWNLANDANDTIMBER.COM
Arable Land: Arable land is land that can be used for growing crops. It includes all land where
soil 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 that
property value is directly related to the use of that property. HBU is a designation used to
identify land that would potentially have a higher value if used for a different purpose. This is
land 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 Rocky
Mountain Elk Foundation estimates that North America is losing over 2,500-acres PER DAY of
Elk habitat due to Urban Sprawl.
A Special Asset Class of Timber called “Class-Jump Timber”: This Asset Class grows at 10% or
more in volume every year and changes into a Different Commodity every 8-years, …like Silver
turning 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 MATURE
Brown Land & Timber Company’s Unique Timber Investment Strategy is called a “Class-Jump
Buying Strategy”. It is unique compared to traditional Foresters and other Timber Investment
Management Organizations (TIMOs).
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3. COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675
870.226.4400 WWW.BROWNLANDANDTIMBER.COM
While 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 changes
class from one commodity into another commodity 3-time. This Jump in Class means big jumps
in 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 land
and 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 an
appraisal, 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 of
2002, you would have paid $1,180 per acre. If you sold this land 8-year later, and received the
average price per acre of $1,990, you would have received an annual return from your land of
8.58%.
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4. COPYRIGHT 2010 BROWN LAND & TIMBER COMPANY, 885 HIGHWAY 172, WILMAR, ARKNASAS 71675
870.226.4400 WWW.BROWNLANDANDTIMBER.COM
If you had bought timber on that land, which had 23 ½ tons of Pine Pulpwood, and 23 ½ tons of
Hardwood 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 return
from your timber of 61.7%.
Your total cost would have been $1,442, and your total sale price would have been $3,545. This
means your total annual return would have been 18.24% per year.
Worry-Free Ownership: Brown Land & Timber Company will lease the hunting rights from our
client for the amount of the annual real estate tax. Then, sub-lease them to a reliable hunting
club, 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 the
Current 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 of
losing land.
“Class-Jump Timber” is Southern Pine Timber growing on “Class-Jump Land” growing at 10% or
more 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 history
because of biological growth and change in commodity class.
The risk of losing “Class-Jump Timber” from all natural hazards, including fire, weather, disease
or 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 average
return 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 has
always been able to have “Worry-Free” peace of mind, knowing their money was parked where
they 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 their
investment was worth less than they paid for it.
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