Skallagrim was most industrious. He had about him always many men, whom he set to seek diligently all such provisions as could be got there for man's sustenance, because at first they had but little live-stock compared with the needs of their numerous company. But what live-stock they had went every winter self-feeding in the woods.

Skallagrim was a good shipwright, and westwards of Myrar was no lack of driftwood. He had buildings set up on Swan-ness, and had another house there. This he made a starting-point for sea-fishing, seal-hunting, and egg-gathering; in all these kinds there was plenty of provisions to get, as well as driftwood to bring to him. Whales also often came in there, and whoso would might shoot them. All such creatures were then tame on the hunting-ground, as they were unused to man. His third house he had on the sea in Western Myrar. This was even a better place to look out for driftwood. There, too, he had land sown, and called it Acres. Over against it lay islands, among which whales were found; these they called Whale-islands.

Skallagrim also sent his men up on the salmon-rivers to fish. He set Odd Lonehouse by Cleave-river to see to the salmon-fishing there. Odd dwelt under Lonehouse. Lonehouse-ness has its name from him. Sigmund was the name of the man whom Skallagrim set by North-river; he dwelt at what was then called Sigmundstead, but now Hauga. Sigmundar-ness takes its name from him. He afterwards moved his homestead to Munodar-ness, that being thought more convenient for salmon-fishing.

But as Skallagrim's live-stock multiplied, the cattle used to go up to the fells in the summer. And he found that the cattle that went on the heath were by far better and fatter; also that sheep did well through the winters in the fell-dales without being driven down. So Skallagrim set up buildings close to the fell, and had a house there; and there he had his sheep kept. Of this farm Griss was the overlooker, and after him was called Grisartongue. Thus Skallagrim's wealth had many legs to stand on.

Some time after Skallagrim's coming out, a ship put into Borgar-firth from the main, commanded by a man named Oleif Halt. With him were his wife and children and other of his kin, and the aim of his voyage was to get him a home in Iceland. Oleif was a man wealthy, high-born, and fore-seeing. Skallagrim asked Oleif and all his company to his house for lodging. Oleif accepted this, and was with Skallagrim for his first winter in Iceland.

But in the following spring Skallagrim showed him to choice land south of White-river upwards from Grims-river to Flokadale-river. Oleif accepted this, and moved thither his household, and set there his homestead by Warm-brook as it is called. He was a man of renown; his sons were Ragi in Hot-spring-dale, and Thorarin, Ragi's brother, who took the law-speakership next after Hrafn Hængsson. Thorarin dwelt at Warm-brook; he had to wife Thordis, daughter of Olaf Shy, sister of Thord Yeller.

Skalla-Grímr var iðjumaðr mikill. Hann hafði með sér jafnan margt manna, lét sækja mjök föng þau, er fyrir váru ok til atvinnu mönnum váru, því at þá fyrst höfðu þeir fátt kvikfjár, hjá því sem þurfti til fjölmennis þess, sem var. En þat, sem var kvikfjárins, þá gekk öllum vetrum sjálfala í skógum. Skalla-Grímr var skipasmiðr mikill, en rekavið skorti eigi vestr fyrir Mýrar. Hann lét gera bæ á Álftanesi ok átti þar bú annat, lét þaðan sækja útróðra ok selveiðar ok eggver, er þá váru gnóg föng þau öll, svá rekavið at láta at sér flytja. Hvalkvámur váru þá ok miklar, ok skjóta mátti sem vildi. Allt var þar þá kyrrt í veiðistöð, er þat var óvant manni. It þriðja bú átti hann við sjóinn á vestanverðum Mýrum. Var þar enn betr komit at sitja fyrir rekum, ok þar lét hann hafa sæði ok kalla at Ökrum. Eyjar lágu þar úti fyrir, er hvalr fannst í, ok kölluðu þeir Hvalseyjar. Skalla-Grímr hafði ok menn sína uppi við laxárnar til veiða. Odd einbúa setti hann við Gljúfrá at gæta þar laxveiðar. Oddr bjó undir Einbúabrekkum, við hann er kennt Einbúanes. Sigmundr hét maðr, er Skalla-Grímr setti við Norðrá. Hann bjó þar, er kallat var á Sigmundarstöðum. Þar er nú kallat at Haugum. Við hann er kennt Sigmundarnes. Síðan færði hann bústað sinn í Munoðarnes, þótti þar hægra til laxveiða.

En er fram gekk mjök kvikfé Skalla-Gríms, þá gekk féit upp til fjalla allt á sumrum. Hann fann mikinn mun á, at þat fé varð betra ok feitara, er á heiðum gekk, svá þat, at sauðfé helzt á vetrum í fjalldölum, þótt eigi verði ofan rekit. Síðan lét Skalla-Grímr gera bæ uppi við fjallit ok átti þar bú, lét þar varðveita sauðfé sitt. Þat bú varðveitti Gríss, ok er við hann kennd Grísartunga. Stóð þá á mörgum fótum fjárafli Skalla-Gríms.

Stundu síðar en Skalla-Grímr hafði út komit, kom skip af hafi í Borgarfjörð ok átti sá maðr, er Óleifr var kallaðr hjalti. Hann hafði með sér konu sína ok börn ok annat frændlið sitt ok hafði svá ætlat ferð sína at fá sér bústað á Íslandi. Óleifr var maðr auðigr ok kynstórr ok spakr at viti. Skalla-Grímr bauð Óleifi heim til sín til vistar ok liði hans öllu, en Óleifr þekkðist þat, ok var hann með Skalla-Grími inn fyrsta vetr, er Óleifr var á Íslandi.

En eftir um várit vísaði Skalla-Grímr Óleifi til landskostar fyrir sunnan Hvítá upp frá Grímsá til Flókadalsár. Óleifr þekkðist þat ok fór þangat búferli sínu ok setti þar bústað, er heitir at Varmalæk. Hann var göfugr maðr. Hans synir váru þeir Ragi í Laugardal ok Þórarinn Ragabróðir, er lögsögu tók á Íslandi næst eftir Hrafn Hængsson. Þórarinn bjó at Varmalæk. Hann átti Þórdísi, dóttur Óláfs feilans, systur Þórðar gellis.