Had this over in Starting Out, and figure it would be better suited here.
A year ago, I had a vision for a motorsport facility which has gained significant traction and support from a number of high profile motorsport professionals. Due to the nature of the development, I need a fairly large tract of land - roughly 500 acres for the facilities themselves and another 500-1000 acres for sound buffer.
Given the amount of land needed, I would like to make the most of the extra land and add value to the overall project, as well as the seed investors. Some topics that have been brought to my attention are:
-timber sales, soil mining, solar power generation (solar farming)
As of now, there are two separate tracts of land with potential opportunity in two separate states in the SE (USA) I am looking at. As part of the land purchase, I feel it would be best to present all of the revenue generation options upfront for each property before starting geological, environmental, and civil surveys.
I would appreciate any insight on creating value post-purchase, identifying suitable revenue options, forecasting, estimation of potential returns during development, key team members to add (engineers, surveyors, etc.), and deal structuring (I am raising funds for the purchase so insight into owner-financing options, etc. would be great).
Thanks for replying,
So I'll expand on this and ask some questions.
One of the parcels we have been looking at (500 ac that is part of a larger 5600 ac tract) was singled out a really good potential site. Very few wetland pockets, some of which actually creates a natural buffer between the road and the site, access from 3 sides, elevation changes of about 70-80 (which is good for this project). Additionally, it has a deed logging road, and has a transmission line touching the property in two spots with 3 phase power.
Today the broker got back to us after we asked about solar power potential and he says the substation is away from the site (about 4 miles). That solar would not be an option.
Question is, with the substation that far away, is the getting power to the site even feasible? Or simply not budget friendly? My initial thought was to contact the utility provider to see if they would like to place a substation on the land after we purchase, yet realize that suits my needs probably more than theirs.
Depending on where you are located, mineral rights may be a possible. In any event, make your offer for the land and any and all mineral rights owned by the seller. If they say they do no own any, then tell them it won't make any difference, you are just asking for any they may own. Many do not know if they own any minerals. I did this on a small farm in WY and found out that I also got about 640 acres of fee coan the owner did not know he owned. Leased them for a signifiant amount of money. When I sold the farm, I reserved the coal rights and any other minerals that I may own.
Open storage may be an option in areas that you do not need. Corners are good for that.
@Ryan Toth what happened with your venture? Still looking for sites? Did you close on this deal?
@Chris Martin thank you for posting. I did in fact find a piece of property that was well suited to the project. It was not my first choice however accomplishes many of the goals and reduces the overall project cost significantly. I have another thread on it however I have yet to close, so it's still out there.
Sounds like you may have some insight. Feel free to drop me a line
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