Tuesday, May 27, 2014

Tons of work to do

There is a ton of work to do to get this place going. Two main areas, each with a long list of needs, require attention. First is to get the yard ready for cabins and/or RVs. We need to relocate the Septic tank away from the water well and then we need to level this place in preparation for trenches for electric, water, and sewage lines. Then we bring in caliche and pack it down to provide a surface for structures and driving. There is a lot of dirt to move so we are praying to find a backhoe to use.

Inside the building there is drywall and plaster
repair work to do in preparation for painting. I need to cut a hole in the ceiling and install one of those drop down stair things so we can get up there to rewire this building. The future electric needs exceed the wiring in place. We plan on installing a commercial kitchen along with large coolers for soft drinks and stuff.

One of my previous companies, "Corporate Liquidation" introduced me to the advantages of purchasing at auctions. I called it "Stealing legally" because I could purchase things for pennies on the dollar value of each item. Cutting costs effectively is a foundation of building a business so when the time comes we hope to find things like coolers and commercial kitchen items at auction. For that I need a cash source and my source for all things is God through lots of prayer. So pray with us folks that He bring the right people into our lives to help us get this ministry together. Considering the huge amount of work that needs to be done requiring a backhoe and dump truck I will be looking to find a steal of a deal on one at auction. It is not just the store location but the 50 or so acres we plan to develop on the farm. Plus I can see a business side of owning the dump truck and backhoe because there is a huge demand for such items and an operator of them in this oil boom. Shoot there are business opportunities all around us here.

Speaking of that we are looking at something called "papercrete" as a building material. Currently the newspapers around here have to pay to dispose their leftover newspaper in the landfill every week. Come to find out it can be converted into a type of brick and formable plaster like building material that is strong and durable, along with being lightweight. I can get the newspaper for free or may even be paid to haul it off and add a little Portland concrete and I have a low cost building material that enables me to build our cabins at a great price. Still have some studying to do on that.

Here is where I started digging the hole needed for the septic tank by hand. I don't sit around waiting  for miracles, I work as we pray for help.

I am also studying aerobic septic systems for the Oasis. These cost a little bit more than standard septic systems but the advantages are well worth it. I am a firm believer in spending a little bit more now to spend less in the future. With the aerobic system the water is reclaimed and can be used to water plants, grass, or anything else. Water is like gold out here in the desert and we need to be wise with its use.

Wednesday, May 21, 2014

Wow, this is happening


We now have control of the store.

                There are lots of things happening these days so I thought it would be wise to give you all an update on the progress made and thoughts on the directions we plan on going. I resigned my position as manager of A-1 Office Furniture effective the last day of April. This will free me up to focus on the needs of the Oasis project.

                There are two aspects of this project. One is to create a place of ministry and the other is to create a business that will address many needs that exist in this area. Having two separate goals might cause some concern with those involved or considering becoming involved with the Oasis Project. There are some who say you should not mix business with religion so it will be important to make sure things are clear regarding this.

                I am not “mixing” religion and business, these will be operated as separate entities. But you have to understand I graduated from Bible college and was ordained into the ministry in 1980. A precept I try to live by says “Whatever you do, in words or deeds, do all to the glory of God”. God is first and foremost in my life. Does that mean I can’t be a successful businessman? Of course not. God has blessed many in the Bible with great wealth and success but with that comes equally great responsibility, along with a danger. That danger has pride at its core and with pride comes many problems. Jesus said to “Seek first the Kingdom of God, and all these other things will be added to you” regarding material things.

                Let me explain what I have in mind when it comes to ministry. There is a great need in Martin County for a bible based alcohol and drug recovery group, kind of like AA. I hope to use part of the Oasis store building to hold these weekly meetings in. Then there will be the spiritual needs of the hundreds of people coming to the area and using our facilities for housing. For them I hope to hold bible studies, provide a pathway to God, and help them get involved in local churches.  There are always times when people need some spiritual counseling or just someone to talk to and that is ministry. That’s it. That is what I am thinking when I use the term “ministry”. No big fancy plans, just helping people out. What may eventually grow from that I can’t say and won’t worry about. This is God’s project.

                Now we will talk about the business end of things and I will outline a basic plan of action. The application for being registered as a limited liability company has been filled out and sent in to Austin. I have no idea how long it takes for that to be approved and sent back so we are waiting now. When it does get approved then we can apply for a federal ID number, resale certificate, and then open a bank account in the LLC’s name. The official name we applied for is Martin County Oasis. When I checked that name was still available. Once we are a legal entity with the proper documentation we can start getting serious. We will need to create and establish credit for the Oasis that will be needed to purchase material and commodities required to build the business. Some of that credit can be established based on the credit history of the owners and investors of the LLC.

                The current assets of The Oasis consists of the property on I-20, which includes nearly a half acre of land and an 1800 sq. foot brick building, a 2004 Ford F150 pickup I purchased at auction, some tools bought for refurbishing the building, and about $13,000 in cash. Future assets can include up to fifty acres of my land to be developed. I have had several people contact me about the possibility of investing in this project and will carefully consider that after consultation with the current investors. The type of LLC we are registering is called a Series LLC. We did this with future investors in mind. With a Series LLC the Martin County Oasis LLC will be the parent company under which we can create as many other LLCs as we need. With this arrangement we will be able to segregate an investor or group of investors to the particular area they are interested in. For instance a group of investors may only be interested in financing the cost of putting in ten cabins. We will establish an LLC specifically for that group and those ten cabins will be their project. There are other advantages to this arrangement that I can cover at a later time.

                There will be two types of investors, long term and short term. The short term investors will have a set amount of cash and desire a quick turn around time for their investment, something like five or so years where they get their investment back with a profit. The long term investors are more interested in providing a source of income for the years to come, where their investment sits intact and they reap the benefits through dividends paid as long as the funds remain in the investment vehicle. We intend to be able to facilitate both types of investors.

                Here is the plan. First we want to prepare the half acre store site for cabins and/or RV spaces. This will require leveling out the area and to do that right I need to rent or find a backhoe but till then I will use a back blade on my farm tractor. There is a spot where a house used to be that has the remnants of the old cesspool that is caving in. This will take some work as it is concrete and won’t be easy to break up. Hopefully a backhoe can do the job.

                Once leveled then I need to dig trenches for water, sewage, and electric lines. Much of that may need to be done by hand because of the underground fiber optic cable that runs near the fence line. Then we will install the water, sewage and electric lines with access points for each of the ten spaces where they can be hooked up to the cabins or RVs. The septic tank needs to be pulled out of the ground and moved to a new spot at the corner of the property farthest from the water well. Another job for a backhoe or some serious use of muscle. I think we would be wise to but a catch tank at the top corner of the property to hold the sewage from the five spaces on the back fence line. It will then be directed to the relocated septic tank.

                When all that is done then we can hook up the electricity and put on the correct connections. We are hoping to bring in caliche to create a good surface for vehicles to drive on and RVs or cabins to rest on. Right now the best price I’ve found is about ten grand but I am sure we can find a better price and do a lot of the leveling and compacting ourselves. We have ordered a bigger transformer to be installed that will be capable of supplying the electricity needs of these cabins, RVs, and the store. Our desire is to be able to have cabins and/or RVs on the property as soon as possible for that will start generating cash flow.

                You notice I say cabins and/or RVs a lot. My research clearly shows that cabins will generate a much higher revenue stream than RVs. We visited an RV park and man camp Sunday. It is only a month old under the new owners. The man camp is in the process of being built now with about eight mobile homes visible. Despite only being open a month all 150 RV spots were full with a waiting list. This park is getting $500 a month for each RV spot if contracted for three months. The monthly rental is $600. That means they are generating $75,000 every month and that works out to $900,000 a year. Not bad cash flow.

                But how does that compare to cabins? Right down the interstate from the store, just a few miles on the way to Midland, is a new enterprise called “Horseshoe Lodge”. It currently has 34 small cabins, that look like storage sheds and are only 300 sq feet each. They are set up as hotel rooms with a bed, bathroom, and a kitchenette. His sign says the rooms rent for $99 a night but what I heard is that he rents monthly at $89 a night. That works out to $2670 a month and with 34 units $90,780 a month or 1,089,360 a year. Over a million a year is not bad for 34 cabins.

                What I plan on doing is to get cabins twice the size of those little sheds down the road. We have been doing a lot of research and have found several possible options. One of the best values we found is Hawk Buildings out of Clyde Texas (near Abilene) and a 16 x 38 steel cabin will run around $23,000. We need to get good mattresses, a television, and other amenities. I am a long term planner and what we know is that there is a huge building surge as companies rush to meet the needs of this oil boom. Hotels are flying up as quick as they can be built along with RV Parks, apartments, and houses. What will eventually happen is that there will be a saturation point where there will be more housing available than needed. When that occurs these people, who are making good money, will have more options, choices, and can be pickier regarding where they stay. That is why I want to invest now in higher quality structures that will help us stand out in the crowd.

                The cabins that will be placed at the interstate property will be highly visible and a form of advertising to the 30 plus thousand  people who will drive past daily. It will be important to make a good impression there. Understand that the interstate property is just the start, the seed if you will, of our long term development plans. I have 50 acres that I plan to make available for this. We can easily fit 100 cabins and 150 RV spaces on that property, along with a community center, supply store, restaurant, swimming pool, and recreation facility in that area. And we can do it in a way that is roomier and not at all crowded like many of the facilities I have seen. The initial need is for worker housing but what will happen is that as these people come here from all parts of the nation and find the jobs they seek they will start bringing family here. Then they will be looking for better housing and a community they can fit in with. We will keep that in mind and as the Lord wills and makes possible we hope to be able to meet those needs too. 100 cabins renting at $2000 a month will bring in 2.4 million dollars a year. That is a price lower than current rates. I don’t desire to gouge and would rather offer prices that are lower and fairer than the competition. Greed is not a good thing and flexibility is advisable.

                Now to the store building. By itself the potential of that store is tremendous. Its placement at exit 151 on the interstate makes it a prime real estate property simply because of the traffic flow. We can sell ice, water, soft drinks, and candy and do good. But we can do much better with a little work. There is a lot of work to do to bring it up to speed. Right now it is a brick building with a steel roof that needs a lot. The windows in the front were boarded up decades ago and some of the wood sills are rotted. The exposed wood surfaces on the roof are also in bad shape and need to be replaced or repaired. Inside there is a lot of cosmetic repair work to be done. Plaster walls to be patched and holes in drywall to be fixed. The wiring is old and not up to our plans so that must be attended to. Both bathrooms need updating. Currently the building is plumbed for propane. I personally am inclined to go all electric but it may be smart to retain some of the propane for a possible commercial kitchen or winter heat. I don’t know enough about that to decide so am welcoming suggestions and ideas regarding this. For that matter I would greatly appreciate any feedback regarding any aspect of this venture because I am just smart enough to know I don’t know as much as I would like.

                We want to make the front room the convenience store area, with coolers, shelves, and all that kind of stuff. The room behind it will be a place to sit down and eat a sandwich or burrito but also where we will hold recovery group meetings and bible studies. The third room at the back of the building is where the kitchen will be. In addition there is a side area that was a porch that has been roughly enclosed. This area is where we plan to put the washers and dryers that we will have available for the renters of cabins or RV spots. Eventually we plan to have a commercial kitchen that can provide food to go for the many workers in the area. I see supplying worker needs as a huge market and foresee a line of trucks stocking up for the day early every morning, getting ice, water, food, and lots of hot coffee. And they will hear about Jesus in the process too.

                So that’s where we are at today. This is something I have prayed years about and we can see the hand of God as things happen we thought could not. I have been called a fool and laughed at for dreaming big. We appreciate your prayers and invite all who feel inclined to consider getting involved. Thanks for the encouragement and prayers.

Bob and Cherie Westbrook

Saturday, March 1, 2014

When all looked lost and hope was gone, when the owner said "You have till Friday or I will sell it to someone else", when a "friend" called me a fool and laughed at my dream, telling others we knew I was an idiot and not to help or even listen, God stepped in. Suddenly, in a day, everything came together. Now we own this old store. Now we have much work to do. Instead of RV's I am planning on putting in small one bedroom houses that can be delivered on a truck. Two miles west a business has storage building size buildings he rents as hotel rooms by the month. Gets $2400 a month for each one and with 28 on the lot so far that equals $980,000 a year. We can charge a fair $1200 a month for the buildings that are twice that size. Meantime I am working on getting a Parole Department approved Recovery Group (Bible based AA) started there. Ultimately this will be used to help people and to tell of the Love of God.

Monday, December 30, 2013

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

                        
                                  
         












Monday, April 29, 2013

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.

Sunday, April 14, 2013

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.

Wednesday, March 27, 2013

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.