GT350R at MSR

[aggie97]

What a joke. Idiots who invest with people like that boggle my mind. Normally PE firms like this that take other peoples money (OPM) are doing it because they don't want to put their own money at risk and want a free ride on carried interest.

Cannot believe anyone was stupid enough to buy TWS to tear it down and build a mixed used development and high-end residential. Just the demo costs, remediation costs, infrastructure costs are WAY higher than other, probably cheaper property in the BCS area. But, what do I know, I'm just a glorified accountant.

LOL! Sorry we've taken the thread OT...

But, I'm just a muddy shoe'd contractor who knows enough managerial finance from college that you don't just "develop" money from thin air and "financing" and THAT is where Real Estate developers get into to trouble because they aren't actually business people who understand the cash side of a business. THEY are glorified marketing people and essentially Bullshit Artists selling an Idea. That idea has to be good enough for the engineers, site work contractor, utility contractor and then the final construction folks to carve off their percentages on the deal and then for the final business/home owners to buy property, move in and prosper. A smart investor works BACKWARDS from those folks numbers which are usually "what are my taxes going to be? and what are my emergency services and insurance costs going to be?" Only if the final customer in the chain can reasonably buy in will the project be successful and for THAT to happen, the land price has to be practically NOTHING, the development costs have to be practically NOTHING and the investment costs have to be available and nearly free in even a GOOD market. Well, the money is nearly free which makes moron investors believe they can make their money back even though item 1 and 2 are not ideal. In this case, the land cost and development costs are 20 times what they should be for a successful project so it's doomed from the beginning. Throw in the fact that the city of CS can't afford to provide ANY services to the site and wants NOTHING to do with incorporation till AFTER the developer pays to build all the infrastructure and there are only so many nails you need to hold a coffin closed.

Personally, it is only a matter of time before those "investors" have enough and ask where the return is and the track is liquidated. My only worry at this point is the property has been broken up partially and may have agreements in place that at some point limit use of the track as a track to protect the parcels that have been sold. If that is the case, the track is likely done for. I just need to get my hands on those sales docs/agreements at Texaslandrecords.com but have a life and have been busy.

[Broncojohnny]

If the track is held in a fund arrangement with a lot of other properties that make a profit the investors will never give a shit. The world is awash in money right now and the development game, at least for the developer, is all about getting that development fee. It is almost impossible to go wrong at the moment because there is always a bigger sucker willing to come in and buy whatever you are building.

It sounds like someone did some very sloppy due diligence on the track if the first couple of feet of soil needs to be remediated. You can sometimes develop industrial property over something like that by putting a cap or vapor barrier on it, that is what they do on some superfund sites. But you'll never get to use it for residential without removing that shit.