Herefords.US":hi5mbtj5 said:
At only $2700 an acre, I'll bet the new owner can subdivide the ranch, get 100% return on his initial investment within 5 years, and still have some of the ranch left, plus keep a healthy share of the mineral interests.
But that's assuming our economy doesn't tank completely ...and it starts raining soon. :cboy:
George
George, it is 10,000+++ acres. How much money do you have to have to build the roads, the streetlights and the underground utilities to divide that sucker up into ~8,000 to 10,000 square foot lots? Nobody buys big lots any more because of the grass cutting expense. The last number I saw around here was $20,000 an acre (the on-site sewer treatment system costs big $$$$). Of course most of the people around here in that business (including several friends of mine) went broke in the last four years too. If you started with just 1000 acres, at ~4 homes per acre that is 4,000 homes that you would have to build and market before you could move to phase two and that is a lot of home sales for a rural market to absorb. In this real estate market, finding financing for something like that is probably impossible.