BiggerPockets

For those that are interested this is an 80 acre development in Tioga, ND, deep in the heart of the Bakken Formation, an oil and gas field that has over 4 Billion barrels of proven reserves. It is being explored and developed by many companies, large and small. Armada Hess, Occidental Petroleum, Enbridge, Marathon, Shlumberger, Haliburton, and many, many oil well field service companies are drilling, fracking, and transporting water, sand, oil, gas and related supplies and equipment all over the Bakken Field. The 80 acre Tioga development is 8 miles from the Hess Gas plant which is hiring 350 additonal workers to enlarge the plant. That is a 2 year process. Enbridge is adding a large pipe line starting 8 miles from Tiog. They need 100 welders for two years to complete this new pipe line. Many oil field works come from out of state and live in camper trailers while they work in the oil field drilling, etc., etc. We are doing a $6.5MM development of 100 new 16ft X 80ft 3 bedroom 2 bath mobile homes and 20 Modular houses, 28ft X 56ft with three bedrooms and two baths. Those houses are for sale on one acre lots with detached oversided 2 car garages. They are on full foundations and are FHA qualified. A buyer can get one for under $7,000 down payment on a 30 year mortgage. I am looking for an equity partner for a large equity positon. The construction financing has been arranged. The investment will be repaid in 24 months and then from the 25th month on, the net, net $120,000 revenue per month would be split between the JV partners. Smaller investments can be made for corresponding smaller equity positions. This is a cash cow with full rentals for over two decades. We are in discussions with various field service oil and gas firms to lease 100 homes for one year leases at $1,500 per month. The mobile home park will be fully rented before we order the houses. Occidental Petroleum is spending billions of dollars in the Bakken as are many other firms to bring out the gas and oil from the very large field. There is a sever housing shortage for a 45 mile radius around Tioga. It is a development that will experience full occupancy for two decades. Please see the below: http://www.latimes.com/business/la-fi-occidental-20101210,0,5711857.story http://www.bismarcktribune.com/news/state-and-regional/article_609e08b2-5493-11df-9b72-001cc4c03286.html http://www.enbridge.com/BeaverLodgeLoopProject.aspx

08:13AM on December 18, 2010 · Stephen Kovacs II