Wednesday, February 06, 2013
This is the kind of park we want to build. Nice with trees, picnic area, and we will have more room for each space than this
Things are moving forward with the RV park and store. Of course nothing moves as fast or as easy as I would like but it is moving forward so that is great. We have some commitments that almost cover the cost of purchasing the property and others who expressed a desire to be involved but they are bigger money people and won’t make a firm commitment until lawyers and accountants all have their say on the matter. They could easily finance the whole concept but I am sitting here a little bit in the dark as there has been no dollar amount presented. I am confident we can get the property and in fact have the word of one that he will make sure that happens. But we still need to make the improvements needed to support 12 RV’s and I estimate that to cost about $15,000. We need to move the septic tank, level off the property, bring in caliche, dig trenches, and install electric service along with plumbing for water and septic. I have talked to a few but still find that an awkward thing to do. It would be easier for me to ask someone I didn’t know, a stranger, than ask those we call our friends. I better get over that. I am not asking for a handout, I am asking for investors who will not only get their money back but make a nice profit as well. In reality I am asking folks to let me give them money, to put some in their pocket. Kind of like “Give me a hundred dollars and I will give you one hundred fifty back”. How much the investors get back I can’t promise but there is no doubts that this can and will be quickly profitable.
Part of the questions we’ve been asked have to do with that aspect of the investment. Until the lawyers, investors, accountants all have their say I really don’t know exactly how the corporation will be structured. If someone offering say, a hundred thousand dollars, needs this structured a certain way so it works best for their taxes or something, then I want to accommodate that. There are three scenarios possible and perhaps all three of them will be done along with other ways to do this.
One is where investors put in X number of dollars and own 50% of the corporation. That money is used to buy and improve property and it starts to bring in revenue. They then get 50% of the profits and will keep getting that for life. They will always own half the business and thus have a say in what we do and how we do it.
One of the quickly thrown up parks. Talked to the owner and he told me of the mistakes he made. We will certainly do better.
Scenario two is where investors put in X dollars and own a percentage of the corporation as their security. The investment is treated as a loan that is paid back with an agreed to profit and when that is all done their ownership of the corporation is considered sold back to the corporation. The lawyer called this a “Note”.
A friend suggested something similar to that yesterday. He called it a “Back out” investment so I will call it “scenario three”. The investors contribute X dollars and get a big chunk of the profits at first, in a sliding scale I guess. Their percentage of the profits would decline each year till in the end it is all paid with an agreed to reward for their involvement.
I like to keep it simple. We have the chance to build a good business that will make great money. I am not greedy and would enjoy helping others make money. My desire is to provide for my wife, and serve the Lord. I love Cherie dearly and she has sacrificed much to be my wife, surrendering freedoms and accepting a life that has been at times very uncomfortable. Then the most important thing for me is to bring life to people who are dying. There are thousands of people here who do not know God and are trapped in lifestyles that have bad endings if continued. There are many who do know God but need help and guidance. This is my heart. I have been rich, owning 3 companies with hundreds of employees, and I have been poor, wandering homeless and carrying all my possessions in a garbage bag. We all must die and all will answer to God for what we have done with the gift of life we have all been given. What do you think God cares about? He loves us so much He sent His son to pay the price for all the wrong we have done so it is pretty clear to me what He sees to be of value. The business will be a way I can focus on what is important as it will pay the bills and allow me to focus on helping others. With the RV park we will have the opportunity to reach those who come to stay through bible studies and just being their friend.
The parking lot at Walmart LOL, lots of potential for us. No question about the need for the RV park and being on the interstate makes it a pretty safe bet
I suspect that there will be some who find this uncomfortable and perhaps would worry that my faith would get in the way of the business. There is the thought out there that religion and business should not be mixed as it will only cause problems. I reckon it would be good to talk about that. If my belief in the living God offends someone then I think it would be wise not to accept their money. That belief in God means that I understand I must account for what I say and what I do. That belief in God means I believe in being honest, hardworking, loyal, and that I need to love and care about all around me. All of these things are vital parts of running a business. Money must be accounted for, work needs to be done, and caring for those who purchase your product has the pleasant side effect of them liking you and trusting you will have their best interest in mind. This enhances your reputation and that reputation will spread far as those who have been served well relate that experience to others.
But there is a legitimate concern regarding how I relate my beliefs to others, and that I will address. I don’t force my religion down anyone’s throat. I don’t preach “At” people. I don’t believe in making others uncomfortable as that does more harm than good. A copy of our story will be available for any who wants to pick it up. When my book gets published that will be available as well, for free to those who we know. It will be sold in bookstores and online but I am not writing the book to make money, but to tell of the love and mercy God has shown me.
I talked to a farmer, one of the potential investors. Called him yesterday to ask about farm stuff. “How much money do you make per acre on a good year?” I asked. Now this guy farms big time, something like 10 or 20 thousand acres. His answer was some years they might clear $20 or $30 dollars an acre and some years he might lose that much. For him that works out to making or losing $300,000.00 a year. “We’re not comparing apples to oranges” he said, referring to our plans for the 75 acres we have. He grows cotton and peanuts primarily and has all the big machines needed, some that might cost $500,000.00 each and the cost of that along with other expenses are worked into his figures. If we made 30 bucks an acre that would only work out to be $2250.00 for the entire farm. I still desire to build a farm with this property but the reality here is a harsh one and one I need to recognize. Farming at that scale is simply not practical.
When I compare that to the ability we have of producing $70,000.00 gross revenue from just one acre of land it is a no brainer. Ten acres can generate $700,000.00 a year, or more. The national average of 20 to 30% profit margins on that revenue includes the cost of building the RV parks and all expenses to run it. We are talking about paved roads and all kinds of big expenses. Considering most of these initial building costs come from conventional loans with 20 to 30 year payoffs the profit margins could be dramatically higher because I can do much of the work myself and most of the parks we have investigated have caliche roads and pads, which cost far less that asphalt or concrete.
But it is exciting to say the least. We are so looking forward to the future available to us, through the help of our friends and partners. How blessed we are and how we are anxious for the opportunity to say “Look what God did”, for when it is all said and done that is where the credit goes. Come join us. The invitation to be a part of this goes out to you all, big or small there is plenty of blessings to go around.