All Forum Posts by: Charles Chester

@Paul Moore @Ronald Rohde. First let me apologize for not responding to this sooner. Not sure how I missed it and haven't been on the forum in a few weeks.

There is an existing rail yard about 2 miles from my home. There is approximately 5 miles of track installed. The company recently went under and is now looking to sale. It's been for sale for a few months. (I can't build the track for the sale price)

Their business model, in my opinion, is too labor intensive with high overhead. The company focused on repairs mostly and did not do field services.

The current track as is holds 440 rail cars. Railcar storage in the area can bring anywhere from $10-$20 per day per car.

Obviously there are several variables, but the assets are in place, hiding in plain sight.

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Originally posted by @Wale Lawal:

Welcome to BiggerPockets you are definitely in the right place. Thanks for sharing your background.

Thank you sir. Can’t believe it took me this long to get here.

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When is a market too specialized? I have a somewhat different idea to a real estate investment, that is not discussed much. It would be industrial storage in a sense. I would love to pick anyone's brain that has experience in the industrial space.

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Originally posted by @Ed O.:

Sure. Raw ground and development loans are risky for a lot of reasons. As your focus gets narrowed into an RV park, the risk increases, because if a project like this did not succeed, the number of buyers and demand for it as an REO would be very limited. In terms of risk of development loans - a lot of developments don't survive and usually the loan amounts are fairly large. They're different from a SFR, in the way that a SFR can be simply sold and usually quickly, to a large pool of buyers. A developed piece of ground or one that is partially developed would be a lot more difficult to sell and would likely be sold at a large loss in terms of what the bank has funded into the project compared to what is netted out of a distressed sale.

OP never responded to my question about experience (love it when ops do this @Raj Gada). I'm guessing he does not have experience in this area. A lack of experience for anyone in any sector is also a large increase in risk for the project / deal. Everyone starts with no experience of course and those that have completed deals are a much safer bet than those working on their first.

@Charles Chester if you're wanting to get into this niche, it will be easiest to start with a smaller development and be prepared to bring a good % of capital into the deal by yourself, with partners, or with private $ to help get the bank on board with it.

This is great thank you very much

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Originally posted by @Ed O.:

Have you developed any RV parks? Without experience, it will be difficult to gain a quick approval with a small amount of money in the deal. Lots of risk in raw land and development.

This is the asset class I want to get into, mostly because its my comfort zone. Can you give me a few examples of the risks you mention? As much information as you're willing to provide is greatly appreciated.

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This is what I want to get into as well. I am not familiar with your county requirements but a Professional Engineer (PE) will more than likely be required to stamp all drawings. Drawings such as road details, utility details (i.e. sewer clean outs, hydrants etc) If you need any help with preliminary layouts shoot me a message.

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I would try all the social media outlets as well

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Thank you.

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Good Afternoon BP

My name is Charles and I wanted to give a quick intro on myself. I am pretty new to BP and this is my first post. I am married to a woman far better than I deserve and we have 4 children. I am self employed and operate a small design firm in southeast Texas.

I recently closed on the only investment property I owned, it was a vacation rental property in Costa Rica. Lots of info on that topic if anyone ever needs it.

Recently I have been looking at bringing all the project experience from the oil and gas industry to the real estate world.

I love the forum and appreciate everyone's information. I have been trying to absorb all I can. This is truly a great place.

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All Forum Posts by: Charles Chester

Charles Chester has started 4 posts and replied 29 times.

Post: Industrial Real Estate

Post: First Post & Quick Introduction

Post: Industrial Real Estate

Post: Looking for Lenders/credit unions for investment land loans in TX

Post: Looking for Lenders/credit unions for investment land loans in TX

Post: Subdivision development-Atlanta metro area

Post: How to contact land owner for not for sale land?

Post: First Post & Quick Introduction

Post: First Post & Quick Introduction