Camp Cooley Sells

[cowtex]

Camp Cooley sold for 28 and 1/2 million dollors. Nice round number. Supposidly was an individual but haven't heard yet who that might be.

 

[ALACOWMAN]

more than likely Ted Turner... look out Texas a 10.000 acre petting Zoo in your future :cowboy:

 

[hillsdown]

Heck TB if I had known it was going for that cheap ,I would have suggested going halvsees with you. Your family could take the west wing and mine the east :shock: :lol2:

On a serious note that is not a very good price for all that you get, especially with a million dollars a year guaranteed in well revenue . I would like to know what the operating costs are .

Thanks for updating Cowtex .

 

[VanC]

Camp Cooley sold for 28 and 1/2 million dollors. Nice round number. Supposidly was an individual but haven't heard yet who that might be.

OK, I confess. Figured if I'm finally gonna dabble in cattle I'd jump in with both feet. Expect lots of questions.

 

[sizmic]

I would've gladly given that for it with that kinda well revenue, to hell with the farming it, that would just be a hobby. This is not sarcasm, I really mean it. What a bargain.

Sizmic

 

[plumber_greg]

I would've gladly given that for it with that kinda well revenue, to be nice with the farming it, that would just be a hobby. This is not sarcasm, I really mean it. What a bargain.

Sizmic

So, if you got that kinda money, why didn't you? gs

 

[ga.prime]

I would've gladly given that for it with that kinda well revenue, to be nice with the farming it, that would just be a hobby. This is not sarcasm, I really mean it. What a bargain.

Sizmic

So, if you got that kinda money, why didn't you? gs

Auction was by invitation only. Sizmic probably wasn't invited.

 

[TexasBred]

Heck TB if I had known it was going for that cheap ,I would have suggested going halvsees with you. Your family could take the west wing and mine the east :shock: :lol2:

On a serious note that is not a very good price for all that you get, especially with a million dollars a year guaranteed in well revenue . I would like to know what the operating costs are .

Thanks for updating Cowtex .

HD I dropped the ball I guess...sorry...we could have bought big hats, tall boots and expensive liquor owning that operation. The selling price is a steal considering what they're getting.

 

[TennesseeTuxedo]

I tend to agree with you TexasBred. I was expecting it to go for much much more.

 

[sizmic]

I would've gladly given that for it with that kinda well revenue, to be nice with the farming it, that would just be a hobby. This is not sarcasm, I really mean it. What a bargain.

Sizmic

So, if you got that kinda money, why didn't you? gs

Exactly for the reasons stated by ga prime, if you must know.

Sizmic

 

[hillsdown]

Anyone could bid provided they pre qualified, if you really were interested you just had to submit your financial information to ensure you were legitimate.

Wonder how many were out at the last minute thanks to the economy and the Stock Markets going in the toilet again.

 

[hillsdown]

Heck TB if I had known it was going for that cheap ,I would have suggested going halvsees with you. Your family could take the west wing and mine the east :shock: :lol2:

On a serious note that is not a very good price for all that you get, especially with a million dollars a year guaranteed in well revenue . I would like to know what the operating costs are .

Thanks for updating Cowtex .

HD I dropped the ball I guess...sorry...we could have bought big hats, tall boots and expensive liquor owning that operation. The selling price is a steal considering what they're getting.

YUP ,too bad I heard about the sale so late, didn't have enough time to liquefy my assets . Might have been able to sell a few "flush" cows to some newbies hoping to get rich .. ;-) :hide:

 

[Alan]

Darn, I was just waiting on one of the hundreds of lottery tickets to pay off ...... I COULD HAVE BEEN A CONTENDER!!!

 

[ga.prime]

If that ranch was mine, the first thing I would do is get rid of the exotic animal preserve.

I saw where John Malone bought a million acres of forestland in Maine and now has more land than Ted Turner- 2.2 million acres to Ted's 2 million.

 

[cowtex]

I was told by a person that was there that it started out real slow. People were wondering if anyone was going to start the bidding.

The 1st lein holder got all their money back and the 2nd looks like they are getting most of theirs back.

The owner had a lot of cash in the place. However, if the oil and gas revenues are legit this guy made a heck of a good buy on this place. Unless it never rains again. :cry2:

 

[Brandonm22]

I don't see where you get that this is such a "great deal". As I understand it the ranch has $1.4 million of oil and gas revenue (in a high oil and gas market). If you pay $28 million that is only a 5.3% return on your money invested. If you had a $100 million in net worth that is a respectable return on investment, it diversifies your portfolio lessoning your exposure to the stock, bond, and currency markets and the land is a hedge against both inflation and taxes. 5.2% is not a great return but anything you clear off the cattle (at least another $2 million investment) , hay, and game preserve is gravy. Still if the cow and trophy hunt biz clears $500g a year it would take 22 years (after taxes) to recover your money......really a pretty mediocre return. If you had to borrow the money, a 30 year fixed at 6.2% (property taxes and insurance included) is going to cost you ALMOST $2.1 million a year. In that scenario you would have to clear $700,000 a year on cows, hunts, and hay just to make his minimum mortgage payment a year IF that gas and oil revenue stays the same. Granted if you can get a 30 year fixed at 4.2% the numbers are a lot more workable; but I still think the guy overpaid by 3 to 7 $million.

 

[TexasBred]

OR you could subdivde it into 100-200 acre tracts and get $4000-5000 an acre for it "without minerals". Those with lakes and buildings would bring more..... Better yet, that area has some of the highest producing gas wells in the US. Eleven wells on a place that big isn't much but when gas prices go up you may see a well on every 40 acres.... looks like they've only drilled enough to have each parcel of minerals "held by production". The potential is astronomical.

 

[sizmic]

Brandonm, you forgot to add the equity or the value of the ground and wells in 20 years.

Sizmic

 

[user1]

I don't see where you get that this is such a "great deal". As I understand it the ranch has $1.4 million of oil and gas revenue (in a high oil and gas market). If you pay $28 million that is only a 5.3% return on your money invested. If you had a $100 million in net worth that is a respectable return on investment, it diversifies your portfolio lessoning your exposure to the stock, bond, and currency markets and the land is a hedge against both inflation and taxes. 5.2% is not a great return but anything you clear off the cattle (at least another $2 million investment) , hay, and game preserve is gravy. Still if the cow and trophy hunt biz clears $500g a year it would take 22 years (after taxes) to recover your money......really a pretty mediocre return. If you had to borrow the money, a 30 year fixed at 6.2% (property taxes and insurance included) is going to cost you ALMOST $2.1 million a year. In that scenario you would have to clear $700,000 a year on cows, hunts, and hay just to make his minimum mortgage payment a year IF that gas and oil revenue stays the same. Granted if you can get a 30 year fixed at 4.2% the numbers are a lot more workable; but I still think the guy overpaid by 3 to 7 $million.

True but if a guy has the cash in hand and any income goes to return on investment it's a pretty good deal. Then if he keeps it a few years and the land appreciates in value, theres a bonus there.. Cash is king

 

[Brandonm22]

OR you could subdivde it into 100-200 acre tracts and get $4000-5000 an acre for it "without minerals". Those with lakes and buildings would bring more..... Better yet, that area has some of the highest producing gas wells in the US. Eleven wells on a place that big isn't much but when gas prices go up you may see a well on every 40 acres.... looks like they've only drilled enough to have each parcel of minerals "held by production". The potential is astronomical.

Hey, I fully admit that I do not know if the gas production is maxed out or not. All I had to go on was the information in the ad-video. Maybe you can double that production.....maybe those wells play out in 10-12 years.....I honestly don't have enough information to predict it either way. All I am saying from here is it looks like he overpaid the way that I am running the numbers. That is an awful lot of money to tie up...............and I know a little bit about having most of your money tied up in ground and minerals.