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

We are on the home stretch

1/31/13 Thursday

          The last day of January. So we are in the home stretch to gather investors for the RV park. Have till the end of February to purchase the property but don’t want to wait till the last minute. That would not be smart. Lots of work to do and no time to waste but I will still make time to minister at the jail. Need to cut some more firewood. Fired up the wood burner last night as it went down to 29 degrees but today will be in the 60’s. There are lots of phone calls to make for sure. When the lawyers said I need to have investors lined up before I create the corporation that surprised me. I thought it would have to be the other way around. That’s why I talk to lawyers and will confer with an accountant because they know way more than I do and we are careful to do this right.

          It is exciting and scary, all at the same time. But there is no question this is a good viable business. All the lawyers and for that matter everyone I talked to agrees that it is not only a good plan but that now is the time to move, to take advantage of the sever housing shortage and provide for some of the hundreds of people moving here for the many good paying jobs. Mostly though, I am confident that this is something God is putting together. One of my favorite scriptures is proverbs 3:5. It says “Trust in the Lord with all your heart. Don’t lean on your own understanding of things. In all your ways acknowledge God and He will direct your paths.” The next sentence is good too where it says “Don’t be wise in your own eyes”.

          So today I will be focused on the RV park. Plenty to do for sure. Talk to me, tell me what you think and make any suggestions you have on how we can do this better. If you want to be a part of it and only have a hundred dollars to spare that will be fine. I know the lawyers want me to only have big money people involved but I want to make this available to everyone. My email is bobcarver2@yahoo.com and I will release my phone number to those who ask so we can talk.  Won’t post it here because we all know what kind of a mess that could cause if the world had my cell phone number.

Met the attorney. Let's do this folks. Time to move

1/30/13 Wednesday Business plan on the first post. Be sure to read it.
 

          Today is a wonderful day, as is every day I wake up. I understand deeply that we live in a world where evil is rampant and spreads like a dark fog, ever growing and infecting all it touches. But I also know that there is light which shines brightly and where the light is darkness can’t abide. It is my desire to be a light in this darkness and to help others come into the light of the love of God but to do that I must fight the darkness. Jesus said “And this is the condemnation, that the light has come into the world, and men loved darkness rather than light, because their deeds were evil. 20 For everyone practicing evil hates the light and does not come to the light, lest his deeds should be exposed. 21 But he who does the truth comes to the light, that his deeds may be clearly seen, that they have been done in God."

          There is much to do, as there always is here on the farm and in the other areas of life we have. Gracie kitty just crawled on my chest as I lay here with the laptop and decided to start “grooming” my beard. Makes typing a challenge. We love our animals and they love us. The heartbreak of losing our puppy, Maisey, is still raw and I miss her every day, as does Cherie also. The other three dogs we now keep very close at hand and they spend much more time inside.

          We talked with the attorney yesterday. I am constantly learning and in learning will understand better and correct ways to do things. It was to be a half hour meeting but in reality  we talked with the attorney for almost an hour and a half. Great conversation that helped me understand what we need much better. I had the concept that what we needed to do was create the corporation and then sell stock to investors. Wrong!!! If we created a class C corporation that had a public stock offering then it would work that way but the last thing we want is a C corp. What I understand now is that I need to get investors lined up and then we create the corporation with them as partners or shareholders. I’m not sure that the word shareholder is appropriate. The corporation will either be a Limited Liability Corporation (LLC) or what’s called an S-Corporation. They both cost about the same to set up and the main difference seems to be in how taxes are done. Even after talking to the attorney I’m not totally clear and he said that this required an accountant to explain and set up. We won’t be selling stock like a corporation on the stock market has, the investors will be sharing in the corporation as partners.

          The one thing that both attorneys suggested is that I don’t want a lot of investors, that it would be better if I just found 2 or 4 big money guys to do this with. The consensus is that the more people we have involved the more likely we will find a “sour grape” who can make life for all difficult. Patrick (the first attorney we saw) used the term “unsophisticated” in reference to the small investors. I have many thoughts regarding this and will share them with you along with inviting everyone to tell me what you think.

          First thought is this. We live in a world of imperfect people and thus will always have problems. Nothing goes smooth as glass, especially when money is involved. Greed is an evil that can poison the purest heart and of course greed revolves around the acquisition of money. We have had “friends” who are wealthy. These friends helped us in many ways but when they looked at our oil well lease tried to get us to sign over the mineral rights and give them full authority over the well. It caught us by surprise and when I refused they suddenly became very unfriendly. (That’s putting it mildly)

Inside the old store in the back room

         We have watched a show called “Shark Tank” where people petition a panel of millionaires to invest in their ideas. The name “Shark Tank” is entirely appropriate and one of the investors glories in his greed, bragging about how greedy he is as he works to convince those asking for help to surrender most or all of what they have to him. The rest of the panelists are less aggressive and more willing to help the petitioners profit along with them. The point is that they all enjoy making money and there is nothing wrong with that but I have seen much in life and wish to avoid the pitfall of having an investor who is more concerned about himself than in helping everyone to succeed. We just watched a program on PBS about Henry Ford and saw there the problems that came from investors and greed.

 More inside the old store. Plenty of room

          So does that mean I am going to worry about it, to allow fear to rule? No, not at all, but it does mean that I will work hard to make sure that we are all on the same page, that we all understand we are in this together and that success comes when we work as a team. Our prayer is that God will bring in the right people, the partners who will be an asset instead of a liability. I choose to trust in the Lord in this but also understand that I play a key role here. My job will be to organize, coordinate, and make sure everything is done. I am the planner, designer, and will be the cheerleader too. Communication is the key. A big plus is that this role is one I am familiar with. My first successful company had a telemarketing room with 25 stations that ran several shifts. Telemarketing can be a depressing and frustrating occupation so I worked to create a positive upbeat atmosphere and also tried to stay on top of the internal politics that always exist when a group of people stay together. The corporation will be a little different from that but the principles are the same.

          Thought 2 – While I understand the concept of keeping the number of investors small to reduce the possibility of conflict and strife there is another side of this coin. I have been poor and I have been worth over a million dollars, and now I am poor again, according to the standards the government use to rate such things. Even though I no longer have all the material things that came with success I consider myself to be one of the richest people in the world. This is because I am alive after being dead, I have my mind back after the severe brain injury that left me like a child, and I have my faith in God back. Most of the people I minister to are poor folks struggling to make ends meet. The investors who have $25,000 or more to put into a project like this are not hurting at all. While it will be nice to find just a few people who can finance this entire operation the possibility exists that this might not happen. I told the lawyer that one way or another I will do what it takes to make our dream a reality, even if that meant I had to find thousands of small investors.

Some of the land from the fence opposite of the old store. You can see the interstate 

         But regardless of how that works, what I know is that for those who are living life on the tight side of finances the opportunity to invest seldom comes along. The lawyer suggested a $25,000 threshold to invest, that if someone can’t come up with at least that much to not accept their money. I understand where he’s coming from but my heart is to help those struggling, to make available to them the same opportunities those who are well off have. Considering that the attorney needs to draw up an investor agreement for every person who hands us money I can see the problems and expenses that would come with having hundreds of them to do but there is a way we can do this. One of those ways is to set up a trust and the trust is seen as a single entity even though it may be made up of hundreds of small investors. The trust then would purchase and own a percentage of the corporation. The corporation pays the trust a percentage of the profits earned and that is divided up to the participants in the trust based on the size of their investment.

          I’m not going to worry about people getting upset, I am aware that this can always happen. All of this is based on trust, and this is the key. You, the investor, have to trust and believe in me, my ability, the RV park concept, and the soundness of the business plan in order to hand me a check. Then I must trust you, that you understand the risks involved and that you will work with us all as we do what it takes to achieve the goal of creating a viable, and profitable, business enterprise.

          We will have an accounting firm to audit the books on a regular basis. There will be a board of directors who will take part in and vote for all major expenditures and activities. I plan on releasing a weekly or monthly newsletter that details what we did, what we spent, and what we plan on next. I will always be available by phone and you can drop by and see what’s happening anytime you want. Both lawyers said that I would need to become a paid employee of the corporation and my rate of pay would be determined by the board of directors.

          Part of what needs to be understood, especially by the small investors, is how the money will be handled and how you get a return on that investment. For the small investors I am aware that a thousand dollars is like a million. For those who don’t have much life is fragile and something like a car breaking down can be catastrophic, putting them in a position where they might not have food to feed their family. Then they are suddenly scratching to survive and if they had money invested in this project they would call to get it back. This is the kind of situation Patrick warned me about so here is how it works. I regard all who are in our life as family. Jesus said we are to love our neighbor as we love our self. The money our investors send us is not going to sit in a bank drawing interest, it will be spent building this business. If we can help those who have run into dire straits we will but legally that money is tied up in the corporation and if it paid for a backhoe to dig a hole we can’t fill in the hole and get the money back. When we get things built and start renting out spots to RVs then there is cash coming in. That cash goes to pay the bills first. There will be operating expenses, electrical bills, insurances, and other things. At first there won’t be much profit but once things are all built and spaces rented that will change. Then we will start paying dividends to the investors.

          How long will that take? With the old store and property on the interstate I estimate we can have it up and running in two months, and maybe even sooner. How long till you get your money back? That is harder to answer. Let’s say you invested one hundred dollars. We plan on two phases as we build this business. Phase one is to get the property on the interstate and have it up and running as quick as possible. Phase two is to build the bigger and better park on the farm land. Much depends on how much money we raise. If it is only enough for the first phase then we will focus on that and work to find investors for phase 2 after it is up and running. Your hundred dollars buys you part of the company so the cash is now converted to real estate. The dividends are a percentage of the profits made that will be issued probably every quarter. The board of directors meet and will decide that.

          Here is the basic math. 12 RV spots at $450 a month will bring in $64,800 a year. That would be the quick set up for the property on the interstate. 50 spots at $550 a month will bring in $330,000.00 a year. Understand that the price at the big RV park on the farm land will be higher because there will be double wide spots, a yard and fenced area, laundry, showers, clubhouse/game room, restaurant, and trees. Spaces like that are currently renting for $650 to $1000 so $550 is a fair and highly attractive price. When we have a total of 100 spaces built then the RV park can generate $660,000 a year. Considering that nationwide RV parks average a 20% to 30% profit margin there lots of room to make money and it will be stable steady and constant. Some will be able to retire on such an investment.

          I have to go now. There are people at the jail who need to hear that Jesus loves them and then I need to fire up the tractor and do some work with the dirt here. After that I must make lots of phone calls as we work to make this happen. Remember, God is good and life is what you make it.