All Forum Posts by: Colter DeVries

Following with the caveat being a portfolio that may have included farm/ranch real estate.
Thank you for posting Phillip

I am regularly using Montanalandsource.com, though this is only for farm/ranch in Montana. I recently had Gore Bolton on my Ranch Investor Podcast to discuss his platform LandIntelligence for transitional/investment/commercial-dev real estate.
If you’re in that space, you can check out

Following.
I’d like to hear the responses as I am also in the dev phase of promoting a ranch real estate syndicate.
Looking forward to hearing your feedback Gerardo.

Ranches encompass vast expanses of land, and limiting them to a single use hardly taps into their full potential. Explore the capacity of land. Here are a few reasons why you need to diversify your operations:

1. Risk Mitigation: Spread risk across different income sources.
2. Stable Income: Ensure steady income throughout the year via multiple activities.
3. Market Reach: Access different markets and cater to diverse consumer preferences.
4. Resource Efficiency: Optimize resource use through complementary operations.
5. Adaptation: Enhance resilience against market shifts and conditions.

If you're a ranch owner, are you open to diversifying your property's potential?

Syndication has become a prevalent strategy in the market, with real estate increasingly embracing this approach. If ranches adopt this investment model, how successful do you think it would be? What syndication model do you think would be best suited for a ranch?

Land inherently appreciates over time, yet actively enhancing its value requires strategy. How do you maintain the value of your land, especially for ranches, amid fluctuating market conditions and challenges?

 @Henry Clark Please check out my Ranch Investor Podcast!

You would love it. Everything you said above fits right in with the discussion.

Also, given your experience in livestock, I would like to hear more about teak plantations in Belize as we can segway from one to the other. That would make for a great episode if you'd be willing to share with my audience!

 I can certainly see where @Chris Seveney and @Carlos Ptriawan are coming from with vesting skin in the game and alignment of interest.
From what I understand of other online syndications of alternative assets, it's fee heavy and little alignment.
What I am hearing is that I should market the 2% hurt money, revenue-share annual management fee, and IRR hurdle rate with 80/20 carried interest better as that is a unique-differentiator from the other pay-for-play platforms.
Not that I am proud to promote this as I wouldn't want to be considered a "discount manager," but the fees are low, both real and relative, and especially low given the asset at hand; 5% placement, roughly 75bps annual (given the revenue share estimates) and then performance at waterfall.
I do not anticipate this being a long-term solution though; only entry for the first launch of beta. I would fully anticipate those fees increasing if demand for the product is proven.
What are your thoughts on this?

 Very useful input @Scott Mac on the difference between 80 LPs @ $50k and 4 at @ $1MM.

My bigger vision is to get to a place with back office overheads, internal cash flows, and technology that would allow passive ranch investing to be available for as low as $500/ea for retail, non accredited investors.

That is the democratization aspect and the vision/values vs execution dilemma I face when testing at $50,000 vs $1,000,000.

Due to the registration being much cheaper, I must go the route of accredited investors only, for now.

My subjective, populist, nationalist, rural Montana beliefs deep down in my bones that still emotionally and personally influence my decision-making-bias is that what we have in Montana is 1-special, 2-should be shared without being too commercialized and gentrified, and 3-is quickly being lost.

With ranches as we all know, and I fully accept, becoming only for the UHNW, part of my core-motivation and driving belief is that technology (online syndication) should present an opportunity in the marketplace to bring in more of the "Average American" to participate, appreciate, and benefit from this asset; not just for it's historical performance, but for its actual tangible benefits (the feels).

Pride in ownership, sense of place, vesting/shared interest in ecology, community, and food production.

First it must be an asset though, one that makes sense in someone's diversified portfolio. In this case, comparable to 10-year AAA bond.

Liquidity would be 10 years; historically the asset has a net Cash on Cash yield of 2% (at best) and appreciates 4-6% annualized. Exit strategy is likely consolidation; I would imagine the highest and best market after 10 years would be 1-5 LPs who would like to consolidate because they know the ranch personally at that point and are generally satisfied with the economic/financial performance.

While this may not be the ideal effect of "democratization," I do see that being the next best option to having 13,000 investors at $500/ea should tech solutions allow for it.

 100% agree on your analysis of Bubba vs Millionaire.

I appreciate you taking an interest in Wagyu as well Henry; before I entered brokerage I had 200hd of black-baldies bred to Full Blood Wagyu bulls. I couldn't make that D2C work for a myriad of reasons on my family's ranch, but I still have immense appreciation for the Beef.

By the sounds of your analysis, my model would be for Bubba; a BYO recreational enterprise. I have no interest in going full fancy concierge service for the ultra wealthy, it's too expense in overheads from labor which is extremely difficult to find in rural MT, and then it just feels like a snobby hunting club which is antithetic to Montana values.

I couldn't/wouldn't do the time share model as well, because again, that comes with higher amenity expectations and people actually have rights to time as real property.

Thank you for the input!