#111  
Old 02-23-2014, 11:03 AM
Columbia gorge Columbia gorge is offline
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Join Date: Jan 2012
Location: Stevenson, WA
Posts: 94
Quote:
Originally Posted by joecoin View Post
Probably because my brother moved there about 20 years ago. Sorry.
HA! It seems like the problem with Portland started with Everclear. Whatever that whole deal was was like a kill stroke of slow death. We do have a strong community and very good golf courses though. You win some and you lose some.
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  #112  
Old 02-23-2014, 01:02 PM
gradus gradus is offline
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Join Date: Apr 2013
Location: Davidson, NC
Courses Played: 32
Posts: 62
Quote:
Originally Posted by Peterb View Post
I like this plot as it is highly accessible for many people and the location could mean that it just might be profitable.

I was chatting with flabby daddy about this concept. Here's what we'd need:

- a group of investors (or a kickstarter) to come up with the down payment plus closing costs plus the 50k or so necessary to get the disc golf equipment, supplies (concrete tees, wooden retaining walls, steps, etc), and perhaps a simple clubhouse. Obviously if we want a real clubhouse we need a lot more money, permits, water, power, etc. It can be done, but it would require a more significant investment or a loan. I'd probably start very simple and build up through time.

- we'd need to pay at least two people to manage the property at all times, including mowing, running a pro shop with snacks and drinks, and any course maintenance.

- we'd need to come to a price point for a day pass to cover the mortgage/insurance/taxes (estimated at around $3200/month for this place) as well as annual passes for club members. Since we'd obviously make an epic course we'd need to charge at least $10 a head for a day pass, and $250 for an annual membership.

- The monthly income from the endeavor would have to double the amount necessary for the expenses (mortgage, employees, supplies, insurance, taxes) to make it worthwhile. If you could make 12k a month from the place, that's in the ballpark

-Obviously a lot of legal questions would have to be resolved/agreed upon prior to any sort of investment in the property. It is tough, but could be done.

Thoughts?
We'd need to have some
This is such an unproven model with high initial investment (land) that you'd need to reduce/spread the risk. Ultimately this is a real estate deal for your primary investor and less of an operating business investment. Your best bet would be to look at a lease model. A) Find an investor who is interested in acquiring the land and generating an income stream. Tenant leases the property and takes on all operating risk, including the expenses for setting up and operating the course. Tenant credit worthiness, potential collateral and viability of the business model is a major concern. But the primary investor protects downside risk by owning the land, which still has the potential to appreciate in value and be sold for development if needed. B) Alternative. Find someone who already owns land and interested in leasing a portion for a disc golf course.

You could protect the course through a longer lease of 10+yrs and some sort of 'right of first refusal' to purchase the land outright at the end of the term if needed. Would be great to get a longer term lease with favorable terms, but it would be difficult to make it attractive to all parties.

Anything more than this and you're looking to hit the lottery to find someone who loves disc golf, has too much money and doesn't invest it wisely.

Last edited by gradus; 02-23-2014 at 01:05 PM.
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