All Forum Posts by: Jeff Kovac

no problem Abram Ylitalo, I would think that someplace along the coastal areas you could locate a supply of containers for sale as they hit their useful life. Do you have a source for containers, a yard to work on them and a way to unload them when they arrive?

Thanks Brandon Turner, Ill do that.

Hello Abram Ylitalo, and thank you for your service. I've read about container living and have also seen it in rural Alaska. Not to pretty but very durable in the bush. Protects your belongings as well. You can close the doors and walk away, 1 big bear proof box. Have you considered looking at the remote cabin market or remote workforce housing and storage markets. I would recommend looking at small, stand alone units for living quarters and mixed use - office/living etc. These are sometimes subjected to extreme use and conditions and the construction of a container may help to minimize damages from traversing rough terrain etc. Containers may be a little narrow for this but you may be able to overcome that item with some creative thinking for the internal layout.

Cabin market is sales while remote uses are typically rental driven.

If you have more questions I would be glad to help where I can.

Regards,
Jeff

Brandon Turner, as for what will happen when its over, that is any bodies guess, however, there are always areas with in a Boom that will attract and hold, population and commerce. If these can be located and invested in, the opportunity for long term growth is very possible. The areas and communities that were hit the hardest were those areas of the initial focus. I have talked to city planners and they are making every effort to understand and project the needs that will be present after the smoke clears. Those projections are the reference for their decisions relating to the speed and scope of current growth. SFH, Multifamily, office, retail, commercial - its all showing. One more interesting dynamic is that many of these planners have ties to local families and care about their communities. This is allowing many smaller communities to build a plan that will work for the long term.

An interesting side note is that there was no zoning in much of western ND before the boom. People came in and built anything anywhere. Truck Shops beside housing developments, RVs parked in the neighbors yards and so on. Those items are still being addressed and will be for some time.

The fact remains that there is still room for investment and development in this boom, you just need to have a pretty sharp pencil.

Hi Brandon Turner, those are the questions of the hour around here. I have worked in several energy plays and, although I have not been everywhere by any stretch, this one is the most intense I have experienced. Each Energy Boom has its own unique set of variables based largely, but not exclusively, on geographic size and location, economies, (regional and national) as well as available workforce. There are also other notable differences at work here.
A very short list is:
1) Limited infrastructure
2) Everybody needs... almost everything and common items are often scarce, creating no end of difficulty and delays.
3) Logistics challenges - In western North Dakota we have a major river/lake system with 3 crossings spread over 150 miles. A second river with only 2 crossing (not close) and 1 National Park System with an Upper and a Lower Unit.
4) But, in my observation, the most interesting aspect is the overall age and reasons that the current workforce is present.
Typically the young will come for the big money and make no mistake, there are plenty here to make their mark, but there is a very large number of men and women that have come save their homes and provide an income for their family located in an areas with slow economies. They come, work their shift and go home. Some will eventually move here and bring family but many will work until their particular goals are achieved and then quietly return home.

Sorry - I guess that wasn't too short after all.

Thank You Karen Margrave. We are purchasing a bit over 1&1/2 acres with all city utilities present. The property surface is flat and ready for construction, it also provides visibility and convenient access from the main North/South & East/West travel routs (they overlap in this area) The area has seen new construction in all of the areas you have listed, as well as 350+ apartment units, 300+ mobile homes, hundreds of spaces in countless RV "Parks", restaurant & retail so feel free to chime in on any and all topics that may apply. Commercial needs are many and w are trying to arrange a feasibility study on the property but there is no one in this market that I have located as yet.

You hit the nail on the head Karen Margrave, Food Fuel & Lodging! All, especially housing, are at a premium here.
Spare rooms - $600-1,000/mo.
Single wide mobiles $800-1200/bed room/mo. (3 beds=$3,000)
Small cabins (1 bedroom-12x24') $1,250-2000/mo.
28' travel trailer (no slide out) $1,200-1,700/mo
RV lots $500-800/mo.
This was mostly an agriculture and tourism area so the roads are taking a beating. Highway, Infrastructure and utility projects are moving along with housing construction coming on full steam. I've talked to the city planner and even if all approved projects are built out, the long term needs of this area are far from being met.
The permanent populations are growing and retail/commercial is now visibly growing.
The property we are purchasing will be commercial and is located on the edge of a quickly growing community.

Hello, my name is Jeff Kovac. My wife and I are Alaskan residents currently operating a small business in the oil fields of North Dakota. Found one of BP’s forums during a commercial real estate search. Checked out the site and joined. I’m now spending less time surfing and more time learning. Thank You to the staff, contributors and frequent forum participants for sharing their insight.

Kind Regards

If I'm able to secure a commercial land lease, are there options for my equity in the ground?

Thinking of pursing a commercial land lease. Is there anyone who can shed some light on risk and reward. I don't have experience in development but am interested in a buy and hold strategy. On the surface, a land lease seems to fit.

Any Thoughts?