Nothing good comes easy

and that holds true for this project. Seems to be all kinds of roadblocks but we finally got them figured out. The title company would not warranty the deed because of a question on the .22 acre strip of land that borders the property. Took several lawyers to figure that one out as it essentially is a clerical error made in 1953 and passed on by the succeeding purchasers of the property. So now we push forward once again. Much has changed in the year we have been working to make this happen.The area is developing fast, with a hotel being created with roll off storage buildings that are going for $99.00 a night. They are plenty busy these days. I drive past every morning and some they are full. Lots of opportunity available these days, you just need to reach out and grab some for yourself. This is what we are making available to you. As we build this company there are several ways you can get involved. You can buy into the corporation and thus become a partner with us, You can make a straight investment with an agreed to return on the investment by a specified point of time. Or you can sponsor a housing unit and/or RV pad. With that we will manage the maintenance and finances involved and you would receive a percentage of the monthly income. It would be like having someone build a home and then manage it for you.

Here is something I created as we look for partners in this venture.

Seeking Business Partners and Investors

The November issue of Texas Monthly and the question they ask is the same one I am asking of you “You Want In?”. I encourage you to get a copy of this magazine and read it, for it contains well researched stories of fortunes made, fortunes lost, and it tells of the regrets of those who missed out because of fear, lack of confidence, or other reasons they chose not to get involved.

I am a businessman who has extensive experience in creating companies and helping others build or fix their businesses. I know how to make money and see opportunity everywhere I look. I am also a Christian and desire that everything I do will glorify the God who loves us so much He sent His son to die in order to grant all who believe the gift of eternal life. There are some who say “Don’t mix religion with business”. If that is how you feel there is no point in reading any further because God will always be at the head of everything I do.

Proposed Project for "Interstate Oasis"

We are talking about a million plus dollar project here so there is some serious money involved. At the risk of scaring potential investors away I will say that making money is not my primary goal in creating this enterprise. My desire is to help people, to provide badly needed housing and resources to assist them in building a successful life as they come into the area, seeking jobs and the opportunities this oil boom offers. But in the process we will make money, lots of it.

Investors generally are looking for either a quick payback of their money or a long term deal that will create a reliable source of income that will provide for many years in the future. I offer both with this venture. First let me present a concise overview of what we intend to do and how this will be structured.

One of the big needs created by this oil boom is for housing. Right now there are multi-million dollar hotels, apartment complexes, and housing developments being built as rapidly as supplies and manpower can allow. In all booms prices of everything skyrocket and that is certainly true today. Land values have quickly gone out of sight. This venture revolves around the 75 acres of farmland we own near interstate 20 and the opportunity we have to purchase an old store building on the interstate at exit 151.

Here is a proposed sequence of events – some will happen concurrently.

1.    Purchase the property on interstate 20

2.    Create a limited liability corporation (LLC) to be the legal entity that provides the structure required to correctly manage the funds and administrative requirements of building this great enterprise.

3.    Begin building infrastructure for RV park, short term housing, camp sites, and associated support buildings

4.    Install RV pads and build housing

5.    Market property and begin making money

Time to include some basic math for this venture. 200 RV spots renting at $500.00 a month can generate $100,000 dollars each month for a yearly potential of 1.2 million dollars. The 16’ X 32’ pre-built single bedroom housing units I propose to place on the interstate property and the farm are available through several companies and can be purchased for $27,000. These homes come finished out with bathroom, hot water, and a kitchenette. I am of the mindset that we can buy the building shells and finish them on site for half that price, with two bedroom units costing only a few pennies more. These unique homes can easily be rented for $1000 or more a month, based on current rental rates in the area, and 50 of them could produce $50,000 a month. That adds up to $600.000 dollars a year for only 50 units and we have room to place far more than that. These small efficient homes will easily pay for themselves in 2 years. Adding support services such as laundry, restaurant, and a store to supply needs and wants will generate supplemental income.

 A Bit of Property History

          It was January 2013 when I first found out that the old store on I-20, right down the road from our farm, was available for sale. This was an opportunity I had been praying about for years, even before I worked for the man who had owned it. He passed away late 2012 and thus the property is available. I had a business concept all worked out and presented it to many friends. A few of them agreed to invest in the idea so I made an offer on the property. When it came to actually purchasing that old store we had a title company look at it to warranty the deed and that is when we discovered the title was “cloudy”. This slowed things down quite a bit.

          After eleven months we have finally received legal advice that gives us confidence to move forward on purchasing the old store at mile marker 151 on Interstate 20. The title to the property was cloudy due to a clerical error made in 1953 when someone mislabeled a little .22 acre strip of land shown on the survey map. That strip was called “tract A”. All of the subsequent buyers of the property over the next sixty years showed tract A on their deeds and left out tract B, which is the main body of the property and contains the store itself so the clerical error was passed along with no one noticing.

          The property lines have been recognized for those sixty years and are clearly evidenced by the existing fence and even more striking is the fact that the land the old store is on is dramatically higher than the surrounding farm land. This is a result of the farm land being constantly plowed and suffering erosion from wind and rain.

          In addition to that is the fact that there was a house on this property that rested on both the .22 acre strip and the main body of land along with the water well, which is on the edge of the .22 acre strip and supplies water to the old store through underground piping. This house was leased, then sold, and moved off of the property. This clearly illustrates that the questioned strip was always considered a part of the property despite discrepancies in the legal description.

          Now that we have assurances that this can proceed without fear of legal issues I am pushing forward. Unfortunately some of the investors we had lined up have experienced changes in their situations so are no longer able to participate. Ten months is a long time to wait. That means now I must once again present this opportunity and seek partners for this venture.

                  Options and Ideas for Property Use – Now and in the Future

          Buying the old store is a safe bet for several reasons. First of all the corridor along I-20 heading east from Midland is being rapidly developed so property values have already skyrocketed. One option is to purchase this strategically located brick building that has a steel roof and convert it to provide housing and rent it out. This would quickly turn it into an income producing property with little needed in the way of further investment. It contains two bathrooms and one shower currently. There is plenty of room in the approximately half acre space to provide space for RV’s and/or campground type cabins for rent. This would create an easy and quick source of income with the property that could help bring a quick return on investment.

          In my mind a better option would be to turn the old store into a new store. This will take some work as it would require shelving, building a counter, and to do it right a cooler section to house soft drinks and frozen items. Eventually it would be an ideal location for fast food type service but I would work towards that slowly as that decision will bring health department regulations and rules to understand and abide with.

          My ultimate goal for this property is for it to be the gateway to the development on our farmland just a mile or so up the road. With its strategic location on the interstate, at an exit and on ramp, it provides an ideal location that affords both high visibility signage and easy access for potential clients to interface with us and sign in for services we can provide through the Oasis RV park, campground, and short term housing. It can do this while remaining a store.

         

          The purchase price for the old store and the land it sits on is now $35,000. My original offer was $45,000 but I reduced it because of the title issues. We need to move on this aspect quickly. I have already been approached by one of the companies developing along the interstate regarding selling my land. I explained I desired to develop it and create an income generating business and they said they would consider partnering with us.

          My original plans have evolved. That is because as I researched what others in the area are doing and looked at the current market and needs, I have learned better ways of approaching this. Originally my concept was to create an RV Park and that is still part of the plan, but other ways exist to address the primary need of housing for this area.

          The option of building "man camps" are one of the ways housing and related services are provided in many parts of the country that are experiencing similar oil booms. These can house anywhere from 200 to 3000 or more people. I have looked into these operations and there is no question that they can be incredibly lucrative. Unless an interested and experienced operator approaches us, I think it will prove wiser to approach building this enterprise in a more conservative manner.

 

          There is a lot of work to do and research that needs to be accomplished. One of our investors asked a good question. He knows I am working full time managing an office furniture store for an elderly couple, who got into a bind when they purchased it as an investment. He asked me if I thought I would be able to find the time to properly focus on this project. I assured him I could, that I would make the time, however as I pondered his question and examined my responsibility I realize that I can’t do this by myself, I really need some help. This needs to be a group effort. There are companies converting shipping containers into housing and we want to explore that too.

          We are talking about building a company, which is something I am familiar with. This will require finding people with various skill sets who can work together and achieve goals. I am looking for investors as well as partners who are willing to get involved and work with me to accomplish something we can all be proud of. Some investors will not want to get deeply involved and that is fine because they won’t have to. Some will be hands on folks but the reality is we will need to employ those who have the particular abilities needed to accomplish each phase of this venture.

          This project will proceed in a step by step manner. First order of business is to obtain the interstate property. That by itself is a safe real estate investment. Putting in RV pads and building housing can be done at a pace regulated by the level of funds available, with each pad or housing unit becoming an income generator as soon as it is finished. It can be done one pad or building at a time or with greater resources a larger number at once.

           Email or reply if you want in. There are billions of dollars flying around the Permian Basin right now and plenty of opportunity to be had. Just takes a little gumption to do it and we are making a safe path to do so now. Look forward to seeing what hard work and foresight can create.

        

Thank you,

Bob Westbrook

                        

                                  

         

Good news folks. We have finally got the survey work done so that means we can proceed with purchasing the property. The print that the surveyor drew up will be sent to the title company and they then should warranty the deed. Now we must gather those who agreed to invest with us in this and determine what funds are still available. One of the investors has had some financial needs show up during this long wait to get the title cleared so he will not be able to participate at the level he had indicated at first. That is how things go and I completely understand. What I know is that God owns all the wealth of the universe so I am not concerned. When all is said and done this will be something that we will be able to say "Look what God did". I look forward to the miracles to come. This old store will be a place of ministry. We have learned of a need to start what is called a "Recovery Group" in Martin County, which is similar to AA only it is bible based. We know that God has all kinds of plans for us and for this property. I hope to start a bible study group that can meet in the building and of course we have much work to do to create a store that can serve the needs of the thousands who drive past every day. That will require getting all the stuff a store needs. Shelves, coolers, counters, cash register, and more. This is fun for we don't have any money. Watch and see what the Lord will do.

Yay!!!! Progress at last. We found a surveyor to help clear up the title and after some prodding he promises to get this done by Tuesday the 16th. This has been a long process and not as simple as we had hoped, but any job worth doing is worth doing right. Lord willing the property will be ours in a week. But that's when the work really starts. We must move the Septic system and level out the lot, then dig trenches for all the plumbing and wiring for each RV spot. Turning that building into a store will also take some doing. There is lots of equipment to buy. Unfortunately we may have missed out on an opportunity as we just learned of a small restaurant/store, similar to what we want to build, that had closed it's doors after selling the property to an oil company. That's Ok, God will provide. Step by step we will get to the goal.

Ok, here is the latest. The deed is indeed cloudy. We found a survey company to go ahead and determine the boundaries as listed in the deed. He said he would get back with me today and let me know when they could get to this job. He did not call so I will call tomorrow. Everyone is busy with the oil field bonanza and making lots of bucks but that leaves less time for small people like us. In my busy day I forgot to follow through on calling the land owner but will do that tomorrow as well. So we will get there, just not as quick as I would like.

Always little problems

There is a discrepancy in the title. The previous title said "Plot A" when the guy who sold it to the one I'm buying from had purchased it himself. But on the title when he sold it to the current owner says "Plot B". Probably a typo when it was printed but these things have to be clear. Plot B might be somewhere else altogether and we want to make sure everything is done right. I am so itching to get started working on this but must practice patience. I do want to say that the ultimate goal is to build a 200 space RV park along with a Man Camp on our land a mile or so up the road. A man camp is simply a housing area for workers that provides bunk space along with facilities to feed them. It's the kind of thing that can be rented to corporations or to individuals on a bunk by bunk basis, like a hotel room. There is tremendous need and potential here. A 200 space RV park can generate a million dollars or more each year and the man camp could equal that as well, depending on the size and number of sleeping quarters.

We have plenty of room, 75 acres sitting here waiting to be turned into gold.

Things are moving along well. A title search is being done to insure everything is free and clear. Then we will purchase the property. I am anxious to get moving, want to jump in a back hoe and start digging trenches and leveling out the property. There is so much potential here. This store is a gold mine waiting to be developed and it's ideal location next to the interstate at an exit opens up a world of travelers to provide for. Lots of tourist trade possible along with an outlet to sell produce grown on our farms as well as locally grown. We look forward to seeing what God has in store.

Talked with a guy with a new RV park that just opened between Midland and Odessa. They have 100 spots built and all but 30 or rented out. He said his phone rings so much he wants to throw it up against the wall. They are still building a laundry and shower facility and have Wi-Fi internet available. The rent is $500 a month and they are currently building more spaces to rent. The math is pretty easy on this. 100 spots at $500 a month equals $600,000 a year. I would love to find additional investors to put in a man camp, basically a mobile home park that operates like a hotel with the mobile homes designed as sleeping quarters along with food service and a recreation relax area. There is good honest money to be made and very little question regarding viability of the concept. The oil boom proceeds and now there is the new shale oil that is being tapped into. Reports are that the shale oil rivals what Saudi Arabia has.

The invitation to join us is ongoing. It takes money to make money for sure and I am in a perfect position to do that with 75 acres of land strategically poised near the interstate.

It's coming down to the wire. Looks like we have enough to get the property. I meet with another investor tomorrow who has agreed to come on board. We will find out what that means when we meet. He is very involved in many things and has great knowledge of such things as real estate and creating corporations so I am grateful for his involvement. There are others who are positive about the whole concept but have not quite committed to get involved. I suspect that their seeing others involved will provide a sense of security for them and perhaps then they would feel more comfortable helping out. Regardless, this is a God thing, as everything in my life should be, so I won't worry and maintain my faith that whatever happens will be for the good. It's easy to talk about faith and trusting in the Lord but when it comes right down to it practicing this is much harder. We look forward to what God has planned and look forward to saying "See what God did!".

Getting the property is just the first step. There is lots of work to do and details to work out. I will be busy for sure. Leveling out the property, moving the septic system, and installing electric along with water are first priorities

This picture is an inside view of one of the rooms. There are two bathrooms and one of them has a shower. We plan on obtaining a coin operated washer and dryer along with a wi-fi internet connection as this will enhance the benefit of renting an RV spot here.

Things are moving forward

This is an RV park in Odessa. It's been there 30 years and is much like what we want to create, with trees, picnic areas, and room. 

 

          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.

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.

 Here is one of the rapidly thrown up parks along the highway. I talked to the owner and he told me of the mistakes made, things we will certainly avoid.  

          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.

          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.

a simple 1 page plan

A good friend suggested I write a shorter and more concise business plan to assist in finding the investors we seek to join us as we create a thriving business, so here it is.

When opportunity presents itself it is the ones who not only see the opportunity but put forth the effort to take advantage of it that succeed. Opportunity has presented itself.

There is a tremendous oil boom in West Texas now and thousands are coming here to find work because the rest of the country is in bad shape. As a result housing is not just in short supply but not available. Corporations are building what are called “Man Camps” to house workers and front yards are being bulldozed to quickly make spaces for RV’s to be parked. Prices quickly escalated for all housing. $40.00 hotel rooms go for $120.00 and $700.00 a month apartments now rent for $2000.00. Monthly rentals for RV spaces that used to be $250.00 are now as high as $650.00 and I heard one report of one thousand dollars a month but have not confirmed that. 

Consequently there is a need and the ability to fill needs is the key to business. A property on the interstate just became available and I have obtained the first option to purchase it, though there is a time deadline of the end of February to do so. The property has a 1500 sq. ft. commercial building on a little less than 1 acre of land. There is a water well and septic system already installed and room to place at least 12 RV spaces. The property can be purchased for $45,000. 12 spaces at a fair price of $450 a month will  generate $64,800 in 12 months. There is little question we could charge more but I like to be conservative in my estimations.

The septic system needs to be moved for it is closer to the water well than state regulations allow. Electric service and plumbing needs to be installed along with the property being properly leveled. I estimate this can be done for $20,000 or less and I am capable of doing most of the work. The building needs some cosmetic work such as painting and patching the interior and eventually windows installed where they had once been. 

This property is on the interstate at an exit and there are 26,000 vehicles a day that drive past so it is a prime location to service the needs of these many travelers in addition to those renting RV spaces. We will install coin operated laundry facilities, improve the existing shower, make Wi-Fi internet available and with the installation of coolers and freezers can safely foresee a thriving convenience store type business that will greatly increase the revenue this property generates. 

Understand that this is just the first phase of a bigger plan to create an RV park/campground using a portion of the 75 acres I own within sight of the store. A hundred RV spots along with camp sites, restaurant, and facilities to service the renters will generate at least $600,000.00 a year with a profit margin that can exceed 30% based on national averages of existing RV parks. Details can be seen on a website located at www.investorsrv.blogspot.com  

We are currently signing up investors who will partner with us in this opportunity. Contact me, Bob Westbrook at 432-488-7346 or email at bobcarver1@yahoo.com