All Forum Posts by: Logan Ingram

 I really appreciate the reply and you have given me a lot of things to think about. I am definitely leaning toward the equity sale. 

1) I don’t have personal access to anyone who has done rv park. Just banks and others who know some of the area number$ 

2) why reorient if driveway is 2-way? I would think it would block the intersection. 

3) all spots will have all hookups (30/50, water, sewer). Lake front lots will be the most expensive and drop in price the further away from the water they are. 

4) was not planning on 2-sided. Location would be rear/middle driver-side. 

5) Not sure what this means (4-phases). All construction will be done at the same time. 

6) there are other entrances to the land and it will not cut any of it off. 

7) thank you for this suggestion. I have struggled with it and have decided to move it per your advice. 

8) bank has already agreed to $0 down (land equity covers) and 18 months interest only (12 month construction and 6 months to cash flow)

9) I have zero interest and zero plans on living there. We will bring someone in. I live 15 minutes away and office 4 minutes away. 

10) the numbers are based on % only because I have no access to real numbers. I have personally tracked and driven through all area parks and counted occupancy for the last 16 months. I show up on weekends, holidays and random week days to county actual occupancy. 

11/12) because of the amount of room we have I am doing ALL 30x50 spots. There are a couple of pull-throughs. 

Evening. I have been pouring over my numbers for over a year now and have it as dialed as I can get it. Its time to pull the trigger but I am not sure on the direction I want to go right this second.

I own the property out-right (118 acres), I have done all my market research, built my construction budget, built my pro-forma and projections and designed the whole thing. I have gotten all the variances and most of the permitting done, and practically have approval for the construction loan, I just MIGHT not have the cash to float construction for 12 months. My options are sell the whole project, bring in an equity partner, or just wait it out and hope I can prove I can float it. The bank is pretty much ready to go, I'm just cash strapped in another project.

I need some help, family. I am seriously considering doing an equity sale to someone who approached me. I have no idea how to structure this thing since everything is speculation at this point. They have asked if I would be willing to do it and I am strongly considering it. I could really use some help and guidance on how to structure this thing so that I am not giving everything up or creating a long-term problem for what is actually a short-term solution.

Any help at all would be greatly appreciated.

Afternoon! 

 I’m looking for any help on how to value a mitigation bank that we want to sell. Articles, calculators, anything would help. We know how many credits we have and we know the market rate of each credit. I cannot find any real info on the internet about how to valuate something like this. We are waiting on final approval as we speak. Its been a 7 year project and we have everything except final approval. 

Are most banks sold just as a bank with the credits as well as the land or do some banks sell only the banking instrument and credits without the land? I already have interested parties, I just don’t know what the real market value of the whole project is. 

Any help would be greatly appreciated. Thanks in advance for any insight.

I dont know your area but I think I can at least give you something to think about. One thing is, unless you are representing the seller I would only concentrate on what you are trying to accomplish for your buyer. I wouldnt worry about the seller being happy with the sale; you are bringing a buyer and they have more than enough power to accept an offer, counter or reject. Their starting price is most likely their blue sky want, not their bottom. Personally, unless you have no desire to learn commercial, I would just try. I wouldn't give someone else that lead, you wont learn  if you never do or try any commercial deals. This could also lead to more deals in the future with the same company, you just never know. I do think we over complicate stuff and worry a lot about offending people when it really is just a business decision, the buyers can walk if they dont like the deal and the seller can walk if they dont like it. If it leads to a sale then really everyone got a good deal. 

Niche commercial is also a little different than homes. Most everyone can live an any given home. Businesses cant do that. There are very specific needs: layout, power supply, docks, ceiling height, office space, etc that they must have in order to operate efficiently. If you cannot find comps in that area, look around other areas that are similar. You don't have to stay in your exact market to know if something is not priced correctly. Now, don't just go pull a comp from somewhere out of the scope of reason, but you should be able to located similar markets and get a general idea of where the seller's price is. Remember, the most anyone will ever do is just say "no". They wont run you out of town for making an offer. If they reject it, just re-evaluate with the buyers and come up with a new number that seems to work. Good luck!

Welcome, Im pretty new too in the Searcy area. 

@Roland Brown, first off, congrats! I think you will do extremely well. I am working on a development in the Houston area right now so this is cool to see from someone else. Will yall be selling lots to the homebuilders or contracting with them to build once you sell the lots yourself? Will you have a big hand in design and layout or are you contracting it all out and letting them use their best judgement? 

I would love to see photos of progress on your work! Its great to get to live vicariously through other's projects and we learn a ton just by watching. 

Investment Info:

Other buy & hold investment.

Purchase price: $155,000
Cash invested: $155,000

118 acres with highway frontage. 8 acre lake. Some mature oak trees. Two access points. One on eastern side connected to the main st in Higginson. One connected to Main St near Highway 167 (Future Interstate 57). Property was allowed to degrade and was/is overgrown with invasive Bradford Pear trees.

What made you interested in investing in this type of deal?

118 acres that close to town, undeveloped with great access to the highway. It was annexed into a nearby city over 10 years ago but the city never provided utilities. It presents a very unique opportunity to detach it from the city limits to remove undue restrictions that have affected the value and use. This will free the property up for multiple uses as well as development types that are not allowed within the city limits.

How did you find this deal and how did you negotiate it?

I have a friend who works at a local bank that keeps an eye out for bank owned properties that could be good investments. The bank took it when the owners still owed $295k. The bank tried to sell it for $299 for a few years. At the time I bought it, it was listed for $199k. I approached the bank (representative) and explained all the barriers to any one buying it for that price: zoning, restrictions, vegetation growth, etc. I offered $150k and they countered at $155k.

How did you finance this deal?

Family money

How did you add value to the deal?

We have brought in machinery and have cleared a good portion of the property as well as access points. I am also in the process of removing all city restrictions by detaching it from the city.

Lessons learned? Challenges?

I would have bought it myself (100% my deal) and done a few things and done a quick sale after some work to the property. I also could have done it all myself and have started an RV/mobile park surrounding the lake.

I should have kept myself quiet about all of my plans and my findings (de-annexation options).

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No. I actually had the agent go and tell others in the area about what I was doing and the bank received a full price offer 5 minutes after they signed my contract. The property had no offers in 2 years. Kind of interesting that they received a full price that quick when I got involved. I would not have told the agent all of my plans.

Morning @Edgar Duarte! I live in Searcy, so not far from NW AR. I have some properties here in Arkansas and have had some in Texas. I am also a licensed agent here in both AR and TX. I had a cabin on the Little Red River near Greers Ferry Lake that I went in with family on. We AirBnB'd it for 2 years and sold it (unwillingly I might add). We did not have an LLC for that property and it was a bit complicated with the family aspect with taxes and income. I have decided to run with an LLC for my investments from now on based on how I want to move money and track things.

I would definitely consult your CPA about which route you should go. There are a lot of factors like personal choices and goals that would play a role in which entity you might want to go with. I'd be happy to help any way I can, feel free to PM me and we can connect.