Loon Lake PresentationLoon Lake Presentation

Loon Lake Area 51Loon Lake Area 51

The HomesteadsThe Homesteads

The Homesteads at Loon Lake

Added Value for FC InvestorsAdded Value for FC Investors

►Survey! (13 parcels 22.3 to 22.6 acres)Survey! (13 parcels 22.3 to 22.6 acres)►Run Power & Phone (10,000 ft @ $5.00 ft)Run Power & Phone (10,000 ft @ $5.00 ft)►Drill a well or two Drill a well or two ►Sell properties $40’s to $80’s rangeSell properties $40’s to $80’s range►Budget approx. $75,000Budget approx. $75,000►Time frame 3 to 4 monthsTime frame 3 to 4 months

Value addedValue added

► Unimproved LotsUnimproved Lots

► Average $42,500 netAverage $42,500 net► Total $550,000 netTotal $550,000 net

► FC min $440,000FC min $440,000

► Improved LotsImproved Lots

► Average $58,000 netAverage $58,000 net► TotalTotal $754,000 net$754,000 net

► $204,000/$75,000$204,000/$75,000

► $2.72 return on every $2.72 return on every dollar invested.dollar invested.

Projected CostsProjected Costs

►SurveySurvey “paid prev yr” “paid prev yr” $11,500$11,500►Power Power $40,000$40,000►PhonePhone “intial bid 4K”“intial bid 4K” $9,000$9,000►WellWell $7,500$7,500►State Highway accessState Highway access $500$500►CCR’s & Utility ease.CCR’s & Utility ease. $500$500►Utility accessUtility access $10,000$10,000

Well Lot 13Well Lot 13

ComplicationsComplications

► Survey OKSurvey OK► Run power & phoneRun power & phone

Need hwy access Need hwy access completed for 911 completed for 911 addressesaddresses

County won’t issue 911 County won’t issue 911 unless you pay taxes in unless you pay taxes in advance for 1 yearadvance for 1 year

Hwy dept needs access Hwy dept needs access easements in placeeasements in place

► Utility access not Utility access not acceptable to Power acceptable to Power and phone companyand phone company

► Power and Phone Power and Phone company won’t/can’t company won’t/can’t work together plowing work together plowing the lines in “must dig the lines in “must dig our own trench” our own trench” rebated $7,000 from rebated $7,000 from Power Co.Power Co.

Complication Cont’dComplication Cont’d

► Power Co. becomes total Power Co. becomes total nightmare! Too wet, too nightmare! Too wet, too rocky, etcrocky, etc

► Raked two miles of ditch Raked two miles of ditch and picked rockand picked rock

► Not good enoughNot good enough► Had 20 loads of sand Had 20 loads of sand

delivered from a company delivered from a company out of Spokaneout of Spokane

► Rock pit 3 miles awayRock pit 3 miles away► Power Co. “not sure if Power Co. “not sure if

that’ll do it”that’ll do it”► Power Co. “line is in the Power Co. “line is in the

phone co. will install soon”phone co. will install soon”► Power & Phone line Power & Phone line

crisscrossed thousands of crisscrossed thousands of timestimes

► Power Co. warns of metal Power Co. warns of metal thefttheft

► Find contractor to fill in Find contractor to fill in ditch “almost done”ditch “almost done”

Almost done!Almost done!

► Need the 6 new Need the 6 new access’s black topped access’s black topped “too busy but will get it “too busy but will get it done”done”

► 33rdrd extension from extension from Highway dept….Highway dept….

► Black top installedBlack top installed► Access’s inspected and Access’s inspected and

approvedapproved

► Wood cutters move in Wood cutters move in and start and start cutting/dragging dead cutting/dragging dead wood “leave 10lbs of wood “leave 10lbs of aluminum cans behind aluminum cans behind for me to recyclefor me to recycle

Actual CostsActual Costs► SurveySurvey $11,500$11,500► Hwy PermitHwy Permit $500$500► Easement/CCR’sEasement/CCR’s $500$500► Access work 1Access work 1stst $15,000$15,000► Access work 2Access work 2ndnd $8,100$8,100► PowerPower $33,000$33,000► PhonePhone $9,000$9,000► SandSand $1,150$1,150► CAD side deliveryCAD side delivery $2,775$2,775► Well drillingWell drilling $16,400$16,400► Asphalt access’sAsphalt access’s $13,400$13,400► Fill ditchFill ditch $3,900$3,900

Total Project CostsTotal Project Costs

►$115,225$115,225►$40,000 over budget$40,000 over budget

Lessons learnedLessons learned

► Project took 13 monthsProject took 13 months► Land appreciated 20% during developmentLand appreciated 20% during development► FC road engineer saved meFC road engineer saved me► Contract road engineer threw me under the busContract road engineer threw me under the bus► Don’t develop out of your network areaDon’t develop out of your network area► Have project in full swing in April “NEWA” WXHave project in full swing in April “NEWA” WX► Start several projects and allow ample time.Start several projects and allow ample time.► Double projected costs to cover all the unknownsDouble projected costs to cover all the unknowns

Expected OutcomeExpected Outcome

►Three lots closed @ $73,500 net $220,500Three lots closed @ $73,500 net $220,500►Anticipate remaining lots to close @ similar Anticipate remaining lots to close @ similar

priceprice

►10 lots @ $73,500 = $735,00010 lots @ $73,500 = $735,000►TotalTotal $955,500 net$955,500 net►Value added $405,500/$115,225Value added $405,500/$115,225►$3.51 return on every $1.00 invested$3.51 return on every $1.00 invested

QuestionsQuestions