I can't believe it did this ?!?! - Posted by Ron M

Posted by Brad Crouch on June 03, 2006 at 21:08:46:


I think you should post this in the commercial forum and look for
assistance from Ray Alcorn. He has a great deal of experience with
large projects


I can’t believe it did this ?!?! - Posted by Ron M

Posted by Ron M on June 03, 2006 at 20:05:56:

I put up my current life savings as a down payment / earnest money deposit on a multi-million golf course purchase. Here is the plan: Since the course is only a few minutes from a major city center, I am intending to convert 9 of the 18 fairways into building sites for 200 duplexes with single car garage/golf cart garage. This will create 400 units which I will sell as condominiums in a 55+ resort-like gated community.

By the time I have paid for sewer, water & driveways, I will have invested additional Million’s for infrastructure. Including all permits, etc, building costs for each duplex comes to approx. $375,000 - $400,000. I intend to sell each unit for $400,000 - $450,000 depending on how the buyer wants their unit finished (i.e. granite counters, tile floors, stainless steel appliances, etc.).

I have run a spreadsheet which indicates that after a 5 year period, the net profit before taxes on this project is in the neighborhood of $80 million. Additionally, the golf course will produce another $1 M in profit on green fees, etc. Other revenue sources will be a restaurant which I will rehab and bring in a successful restaurant owner friend of mine to partner with. The sale of items such as clubs, etc. from a pro-shop, cart rentals, and event rentals (such as wedding receptions) in the banquet room.

Here is my biggest worry. I have hired small contractors and also rehabbed properties myself. I have even been involved in the successful sale of thousands of single family homes, so I am confident I can sell the finished units. However, having never done a complete housing development, I need a step-by-step approach to putting this project together. For those of you who live in the southern half of the U.S.A. the concept will be very similar to the Del Web properties.

Does anyone know of a comprehensive resource that speaks to how to develop infrastructure, work with governmental agencies, whether or not I should get a general contractors license to do this or hire a general, how to raise the capital and prove to the sellers that I have the financial resources to close on the property after I have done a feasibility study, etc?

I look forward to hearing from anyone who can assist me in putting this project together in any way.

Ron M

Re: I can’t believe it did this ?!?! - Posted by Jack

Posted by Jack on June 04, 2006 at 17:51:05:

This is over my head by quite a bit. But since you posted this here, I’ll give you some feedback. fwiw:

  1. Given that I have a similar background to you, I would not be able to sleep at night if I put all my money into such a project. I have made a decision to not do any more deals that will cause me to wake up in the middle of the night, thinking that I may have forgotten something. But that’s just me.
  2. I hope you have at least $3,000,000 in cash reserves.
  3. I’m guessing that the ‘plan’ to subdivide the front 9 of the golf course has already been approved by all the necessary government agencies, but I thought I would mention it anyway.