Donnie ,
Here's a challenge : Figure out what your cost basis needs to be for a $ 35.00 golf experience . How about you start with these parameters.
- $ 1,000,000 operating expenses ( trust me , that's cheap )
- 70 Leased Carts ( not included in ops expense )
- $ 500,000 in Leased Maint. Equip ( not included in ops expense )
- 30% Equity with 10% return on equity
- 70% Debt with 20 yr am and 8% interest
- 5% of Revenue Capital Improvement Fund
- 40,000 Rounds
OK , What do you have to invest in land , permitting , engineering , GCA fees , irrigation source development , bring utilities to he site , construction , grow in , on course structures , CH development , parking lot development , maintenance building development , pre opening marketing , pre opening operations , inventory , operating cash reserves , contingency , ect. .... All before the 1st tee shot gets hit .... Oh , and don't forget ... you've devoted your life to the game , so you can spend 24 months of your life putting it all together without compensation.
OK , What's your cost basis for the $ 35.00 Golf Experience ?