Loon Lake Area 51

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Loon Lake Area 51

  1. 2. Loon Lake Presentation
  2. 3. Loon Lake Area 51 The Homesteads The Homesteads at Loon Lake
  3. 7. Added Value for FC Investors <ul><li>Survey! (13 parcels 22.3 to 22.6 acres) </li></ul><ul><li>Run Power & Phone (10,000 ft @ $5.00 ft) </li></ul><ul><li>Drill a well or two </li></ul><ul><li>Sell properties $40’s to $80’s range </li></ul><ul><li>Budget approx. $75,000 </li></ul><ul><li>Time frame 3 to 4 months </li></ul>
  4. 8. Value added <ul><li>Unimproved Lots </li></ul><ul><li>Average $42,500 net </li></ul><ul><li>Total $550,000 net </li></ul><ul><li>FC min $440,000 </li></ul><ul><li>Improved Lots </li></ul><ul><li>Average $58,000 net </li></ul><ul><li>Total $754,000 net </li></ul><ul><li>$204,000/$75,000 </li></ul><ul><li>$2.72 return on every dollar invested. </li></ul>
  5. 9. Projected Costs <ul><li>Survey “paid prev yr” $11,500 </li></ul><ul><li>Power $40,000 </li></ul><ul><li>Phone “intial bid 4K” $9,000 </li></ul><ul><li>Well $7,500 </li></ul><ul><li>State Highway access $500 </li></ul><ul><li>CCR’s & Utility ease. $500 </li></ul><ul><li>Utility access $10,000 </li></ul>
  6. 10. Well Lot 13
  7. 14. Complications <ul><li>Survey OK </li></ul><ul><li>Run power & phone </li></ul><ul><ul><li>Need hwy access completed for 911 addresses </li></ul></ul><ul><ul><li>County won’t issue 911 unless you pay taxes in advance for 1 year </li></ul></ul><ul><ul><li>Hwy dept needs access easements in place </li></ul></ul><ul><li>Utility access not acceptable to Power and phone company </li></ul><ul><li>Power and Phone company won’t/can’t work together plowing the lines in “must dig our own trench” rebated $7,000 from Power Co. </li></ul>
  8. 15. Complication Cont’d <ul><li>Power Co. becomes total nightmare! Too wet, too rocky, etc </li></ul><ul><li>Raked two miles of ditch and picked rock </li></ul><ul><li>Not good enough </li></ul><ul><li>Had 20 loads of sand delivered from a company out of Spokane </li></ul><ul><li>Rock pit 3 miles away </li></ul><ul><li>Power Co. “not sure if that’ll do it” </li></ul><ul><li>Power Co. “line is in the phone co. will install soon” </li></ul><ul><li>Power & Phone line crisscrossed thousands of times </li></ul><ul><li>Power Co. warns of metal theft </li></ul><ul><li>Find contractor to fill in ditch “almost done” </li></ul>
  9. 16. Almost done! <ul><li>Need the 6 new access’s black topped “too busy but will get it done” </li></ul><ul><li>3 rd extension from Highway dept…. </li></ul><ul><li>Black top installed </li></ul><ul><li>Access’s inspected and approved </li></ul><ul><li>Wood cutters move in and start cutting/dragging dead wood “leave 10lbs of aluminum cans behind for me to recycle </li></ul>
  10. 17. Actual Costs <ul><li>Survey $11,500 </li></ul><ul><li>Hwy Permit $500 </li></ul><ul><li>Easement/CCR’s $500 </li></ul><ul><li>Access work 1 st $15,000 </li></ul><ul><li>Access work 2 nd $8,100 </li></ul><ul><li>Power $33,000 </li></ul><ul><li>Phone $9,000 </li></ul><ul><li>Sand $1,150 </li></ul><ul><li>CAD side delivery $2,775 </li></ul><ul><li>Well drilling $16,400 </li></ul><ul><li>Asphalt access’s $13,400 </li></ul><ul><li>Fill ditch $3,900 </li></ul>
  11. 18. Total Project Costs <ul><li>$115,225 </li></ul><ul><li>$40,000 over budget </li></ul>
  12. 19. Lessons learned <ul><li>Project took 13 months </li></ul><ul><li>Land appreciated 20% during development </li></ul><ul><li>FC road engineer saved me </li></ul><ul><li>Contract road engineer threw me under the bus </li></ul><ul><li>Don’t develop out of your network area </li></ul><ul><li>Have project in full swing in April “NEWA” WX </li></ul><ul><li>Start several projects and allow ample time. </li></ul><ul><li>Double projected costs to cover all the unknowns </li></ul>
  13. 20. Expected Outcome <ul><li>Three lots closed @ $73,500 net $220,500 </li></ul><ul><li>Anticipate remaining lots to close @ similar price </li></ul><ul><li>10 lots @ $73,500 = $735,000 </li></ul><ul><li>Total $955,500 net </li></ul><ul><li>Value added $405,500/$115,225 </li></ul><ul><li>$3.51 return on every $1.00 invested </li></ul>
  14. 24. Questions

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