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