Rancho said:
Heineken-Ashi said:
Rancho said:
Thank you
And I wouldn't sleep on keeping a driving range. A place to bring my kids that's covered, where we can hit balls, they can play afterward, we can eat. I would be there weekly.
My struggle with the range is the space I'd need - we're targeting 10-15 acres for entire property
And I realized I never answered your question from an investment perspective.
My questions would revolve around how you are modeling the financials and the expected returns. I'd want to see a base case, a best case, and a worst case. I can get nearly 5% in a 10-year treasury right now. So I would need yearly cash flow 6-7% minimum. Could give it a year or two to get off the ground, but would probably need additional CF premium if so. Would want to recoup my original equity as quick as possible. This is an investing environment with the market at historical levels of overvaluation, real estate threatening further decline, bond yields threatening breakout higher. I don't expect the market to return what it did the last 3-5 years for the next 3-5. But I can move in and out of the market in the blink of eye. I can't move out of your investment. There's no guarantee I can't get a better bond yield in a year. And real estate is not investible right now. So if I was throwing my money into an entertainment venture from an unproven developer/operator (not saying that's you, but not sure of your track record), then you are going to have to entice me with either strong yearly cash flow on fairly conservative underwriting, or a path that shows I can realistically get my money back fairly quickly. That would likely include a business plan directly attacking the main money spending demographic in a location that could sustain a slight downturn on consumer spending.
So again, I would hesitate if the business plan was a mile wide and inch deep, like a gimmick golf course, dog park, restuarant. All low margin and high cost/maintenance and dependent on continuous volume from a target market that can go to a dog park for free, has endless restaurant options, and isn't likely to sustain the golf volume. Hence why I think your best bet is to provide a fun, unique, and easy place for families that every member can enjoy.