Camp Cooley Sells

[Brandonm22]

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

If you can pay cash and you don't have to turn around and use that equity and this is less than 50% of your total net worth why not just go ahead and do it. I would probably still rather put my fictional $28 million into Brazil if it were my decision.

 

[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.

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.

I assure you they did not pay to0 much for it and your numbers are nowhere near accurate. You're just figuring an annual return of a million bucks on a 22 million investment. I can assure you that gas well have lifetimes of 30 years or more, can be overhauled and keep going. There are some wells in that are with initial production of over one billion cubic feet per month (you do the math on that). Gas will vary from $3 to $12 per thousand. Looks to me like it would hold several hundred wells without being maxed out.

And since you're familiar with minerals check and see what it cost to buy "producing" minerals. That alone would cover the cost of the ranch I'm sure.

 

[Herefords.US]

It's an impressive place. I picked up some ET calves at their embryo barn a few years back.

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

 

[Brandonm22]

I assure you they did not pay to0 much for it and your numbers are nowhere near accurate. You're just figuring an annual return of a million bucks on a 22 million investment. I can assure you that gas well have lifetimes of 30 years or more, can be overhauled and keep going. There are some wells in that are with initial production of over one billion cubic feet per month (you do the math on that). Gas will vary from $3 to $12 per thousand. Looks to me like it would hold several hundred wells without being maxed out.

And since you're familiar with minerals check and see what it cost to buy "producing" minerals. That alone would cover the cost of the ranch I'm sure.

You very well could be right. I have no geological data AT ALL on this property; but if it is so EASY to ramp up the gas production to $3 to $5 million a year, why did the LAST owner lose everything he had???? If it was worth a lot more that $2700 an acre.......why did it not bring more than that? It has been on the market for ~ a year.

 

[cowtex]

My connection to get the selling price, came through one of the lenders. He didn't get the name of the buyer yet but will get it for me .

My guess it probably was someone in the oil and gas know. I don't think anyone was going to pay their asking price( or close to it) knowing it was going to auction without a reserve price.
These trophy places have usually got a little ego envolved. But there are some guys around Texas that sold their company's for huge amounts that could roll the dice for 281/2 million.

Who knows maybe our congress bought it out of their pocket change.

 

[Brandonm22]

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.

 

[Herefords.US]

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.

I wasn't talking about housing developments. I was talking about dividing it into smaller acreages - for horse farms, etc. Most of the roads you'd need to do that are already there. About all you be out is surveying and maybe some fence building.

George

 

[Brandonm22]

That might work well in Texas. The recession really never got bad there. In most of the U.S., the deadest segment of the real estate market is spec macmansions on large acreage lots. People are too scared to tie up that much money in housing (now seen as a bad investment for the first time in my life), they don't want a long commute, people that can easily afford that are reluctant to show out while their friends are losing jobs, and there are thousands of homes like that on the market selling for well below the cost of building the house. Horses are starving because families can't afford to fee them any more and all the rescues are full. Here in the great Birmingham market we took a 9% cut in average home selling price from June last year (and June 2010 sucked). The homes that are selling well are small on even smaller lots. The builders would build 950 sq foot homes on 4000 sq foot lots if the stupid towns zoning laws would allow it, because it's what the market wants. The last guy who tried a gated horse set subdivision like that here cut well over a half mile of roads and utilities built 4 spec homes 3500 sq foot plus, sold (or rented) one, and lost it all to the bank. I don't think the first horse ever arrived. I feel sorry for the one family living down there. Off the top of my head, I can't think of one of those that developments locally that are actively marketing and building new homes, though that was a VERY popular market segment in the 90s. Real estate became a whole different world in 2008.

 

[TexasBred]

I assure you they did not pay to0 much for it and your numbers are nowhere near accurate. You're just figuring an annual return of a million bucks on a 22 million investment. I can assure you that gas well have lifetimes of 30 years or more, can be overhauled and keep going. There are some wells in that are with initial production of over one billion cubic feet per month (you do the math on that). Gas will vary from $3 to $12 per thousand. Looks to me like it would hold several hundred wells without being maxed out.

And since you're familiar with minerals check and see what it cost to buy "producing" minerals. That alone would cover the cost of the ranch I'm sure.

You very well could be right. I have no geological data AT ALL on this property; but if it is so EASY to ramp up the gas production to $3 to $5 million a year, why did the LAST owner lose everything he had???? If it was worth a lot more that $2700 an acre.......why did it not bring more than that? It has been on the market for ~ a year.

Brandon gas companies do the ramping up when prices are best and at their discretion and unless your a geologist you couldn't understand the data if you had it. (Just a fact my man)....the same for drilling...it's done on their schedule. The sale was a "bank sale". Just one step above a sale at the courthouse steps (foreclosure sell). Investors don't ever pay what something is worth. They know what they want to pay and that's pretty much it. In a case like this selling price has very little if anything to do with value. The bank cannot raise the bid....only the other bidders can do that. It actually was on the market for a year, but why buy it when you can just wait on foreclosure and get it for a song when the bank sells it.

 

[Angus In Texas]

I think the thing that most people are missing is that the ranch was not the cause of it's own downfall. It was only being liquidated because the owner lost his rear with other investments and was reorganizing his portfolio which involved dumping the ranch to cover other losses.

Whether you think someone over or under paid for the property as an investment, you must realize a lot of these guys use ranches/acreage as tax write offs against other investment's profits. Not to mention it has a lot to do with the fact that they have the money so why not do what they want.

I have seen tracts of up to 600 acres sell for anywhere between 5 and 10 thousand an acre in the Central Texas area. That is with no wells or potential for wells. All because someone had the money, saw the opportunity to purchase property and wanted to make sure no one else could outbid them. All it has been doing is driving up the price of everyone's property around here and the average person can't afford to buy land to run cattle. Not at $4,000 to $6,000 an acre.

 

[Herefords.US]

I have seen tracts of up to 600 acres sell for anywhere between 5 and 10 thousand an acre in the Central Texas area. That is with no wells or potential for wells. All because someone had the money, saw the opportunity to purchase property and wanted to make sure no one else could outbid them. All it has been doing is driving up the price of everyone's property around here and the average person can't afford to buy land to run cattle. Not at $4,000 to $6,000 an acre.

That's the reason I think the new owner could get a 100% return on his investment within 5 years - if he wanted to divide it up.

For instance, I'd bet that fancy sale facility would get a lot more purebred folks interested in it with a section or two of land going with it, instead of 10,000+ acres.

George

 

[Black Coos]

It is all about how much money you got,There just ain't that much quality land left in the world...It seems to me that it is a great deal...I sure would love to have it....Now if I was tring to pay for it, off it , well that is another story...Land is one thing that nothing else beats....Well maybe gold, silver or a good wife..........But little else....Money , stocks, bond, all cyber or paper with nothing backing them except the owners brains, ( knowing when to buy/sale) ...Land is always King...of course guns and ammo and backbone is also needed from time to time...
There ain't much that I am envious of, Except Land, and Hay at certain time of the year...

 

[TexasBred]

Was told yesterday that Circle X Land and Cattle from Bryan, Texas bought Camp Cooley Ranch. Went to the sale to try and buy mineral rights only but deal was so good they just bought it all.

http://www.circlexbrangus.com/

 

[ALACOWMAN]

great news!! local folks, hope they keep it rolling as a ranch...

 

[TexasBred]

great news!! local folks, hope they keep it rolling as a ranch...

Ws told that was the plan. O&Gas revenue will just about cover cost of operation every year at 1 million.

 

[Angus In Texas]

I wonder if they will be expanding their registered herd now..... good to see someone buy it that hopefully doesn't intend on splitting it up. You don't see many large contiguous tracts of land like that around this area anymore.

 

[DOC HARRIS]

All kidding aside, Guys and Gals, the comments on this thread are funny and legitimate.

If one had the CAPITAL to sweat out the economy downturn cycle, with the required knowledge necessary to successfully manage an operation that Camp Cooley IS, the possibilities are UNLIMITED insofar as breeding, developing and managing a knock-out beef program for the long-term future! We all can dream of what and how we would proceed to develop our aspirations of a Beef Empire, but with the Knowledge and Finances to circumvent the inevitable mistakes we would make, and with the obligatory and dependable employee help one MUST have to succeed, we could burn our BRAND on the rump of the world!

DOC HARRIS :hat: :wave:

 

[TexasBred]

I assure you they did not pay to0 much for it and your numbers are nowhere near accurate. You're just figuring an annual return of a million bucks on a 22 million investment. I can assure you that gas well have lifetimes of 30 years or more, can be overhauled and keep going. There are some wells in that are with initial production of over one billion cubic feet per month (you do the math on that). Gas will vary from $3 to $12 per thousand. Looks to me like it would hold several hundred wells without being maxed out.

And since you're familiar with minerals check and see what it cost to buy "producing" minerals. That alone would cover the cost of the ranch I'm sure.

You very well could be right. I have no geological data AT ALL on this property; but if it is so EASY to ramp up the gas production to $3 to $5 million a year, why did the LAST owner lose everything he had???? If it was worth a lot more that $2700 an acre.......why did it not bring more than that? It has been on the market for ~ a year.

Brandon as I said, gas companies drill then THEY get ready. Not on our schedule. It was listed at about $58 million when it was listed with a realtor. Guess nobody thought it was worth it or had the money or could not get the money. It didn't bring more because everyone was looking for a steal at a "bank sell" knowing that banks typicall are very happy to get 50 cents on the dollar for a property. The people that bought it thought the minerals alone were worth what it brought and I'm figuring they're right. It's not unusual for minerals to sell for much more than surface rights in a oil/gas rich area. They gave $2700 an acre for land that had mineral rights worth perhaps 10 times that much and IF they decided to sell them they would bring that much.

 

[Brandonm22]

All I can say is that it did not bring that when it WAS on the market.

 

[MF135]

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

If you can pay cash and you don't have to turn around and use that equity and this is less than 50% of your total net worth why not just go ahead and do it. I would probably still rather put my fictional $28 million into Brazil if it were my decision.

BRXX