All Forum Posts by: Ryan Toth

Andy Krzanowsky very true. It is not a new concept by any means and the best facilities include the social element. I plan to host Cars & Coffee type events as well. Charleston while not necessarily known for a huge car scene has a very active C&C event and is right up the road from the Kiawah Concours held annually. Due to our great weather and coastal environment, there are quite a number of collections nearby. This was confirmed during my discussions with Hagerty. Salt water, storm threats, and a snow-bird lifestyle are the driving force behind the need.

Originally posted by @Scott Meyers:

Hi Ryan, 

We have put together Syndicated deals like this and do joint ventures all over the country.  If you want to message me offline, we can chat about what it might look like and how to achieve this. 

Thanks Scott, I drop you a line shortly.

Originally posted by @Brad L.:

While focusing on the car enthusiast niche is a good idea backed by tons of demand, I worry that your facility would be a bigger target for criminal activity if it's labeled as a car storage facility. 

At a car enthusiast storage facility, each unit would have a very high perceived value, potentially giving criminals the idea that their golden ticket can be found behind any door.

Originally posted by @Karyn T.:

Will insurance be an issue??

 Not really. Hagerty has a product designed specifically for commercial car storage and will even market our services to their clients as our coastal environment presents a huge risk to existing collections.

Hi BP,

We would need to fund the venture, however, I'm not sure how it would be classified. As of now I am awaiting a geological survey to be completed and verification zoning is not an issue (which it shouldn't be). 

He is a veteran and has a good relationship with our local CU, however I think we may need to be a bit more creative. Just not sure how to pitch the idea...

PS-not sure what happened to my text there.

Thoughts?

@Chris Martin thank you for posting. I did in fact find a piece of property that was well suited to the project. It was not my first choice however accomplishes many of the goals and reduces the overall project cost significantly. I have another thread on it however I have yet to close, so it's still out there.

Sounds like you may have some insight. Feel free to drop me a line

David Dachtera while I don't operate one of these, there are several flex space offerings here in Charleston. Besides the local Chamber offering a free work space, they also offer conference rooms and catering at reasonable daily rates. As part of their package, if you have an active Chamber membership, you're able to use the working space (some tables, chairs, lounge area with projection TV, coffee and soda refreshments. There are no computers but I think there is printer copier available. Some of the other spaces I have seen around town charge by the hour and another does monthly rates. Those offer private "offices", or cubicles to work from and some personal support from business consultants and experienced startup teams focused on raising money. Personally, I like the idea of charging a flat membership fee monthly, allowing some free use of the space, and charging for more advanced services like catering, private conference rooms, consulting, tax and accounting etc. If you were savvy about it, you could provide remote office workers and startups all the resources they would need to get off the ground at what would feel like very low rates. The membership is also good because by nature, people like to feel apart of something rather than simply paying rent. Good luck! Ryan

Hi Alan Firth . Welcome. I'm in Mt P as well. I'm relatively new to RE as well so shoot me a line sometime. Ryan

Regarding the seller finance component- I read capital gains tax is a big advantage. What other perks should I be pitching? Also, is there any method to pulling out potential equity or using the appraisal to fund a down payment for the owners and add some funds for improvements?

@Percy N. unfortunately these facilities don't often come on the market. There are probably 10 in the country right now, however the majority are ovals or dirt tracks. Quite different markets of course.

I suppose the closest to an actual comp would be the recent sale of Miller Motorsports Park in UT to a Chinese investment group. It went for $20M. However it was 500+ acres and a well known facility with a number of sanctioned events and a variety of configurations. Per the appraisal there are a number of comps for the land parcels themselves (two) however the rock base for the track eclipses those numbers itself as the area is quite rural. 

 I do have the financials for the last four years. And have picked them apart. Since I based all of my projections off the 2014 numbers, I had to look at them closely. I probably have about 10-15 different financial scenarios. In my professional life, I am tasked with evaluating business performance so this comes quite naturally to me. As an example, there is a lot of excess spending, so I cut that and saved almost $150k. That's where most of my net revenue comes from in Yr 1 as I didn't adjust pricing or volume simply to stay on the conservative side.