Forums: Skydiving: Wind Tunnels:
Paraclete XP for sale

 


likearock  (D 24640)

Sep 30, 2010, 8:16 PM
Post #1 of 9 (3134 views)
Shortcut
Paraclete XP for sale Can't Post

http://www.loopnet.com/...clete-Dr-Raeford-NC/

$30M sounds kind of steep - from what I hear, the smaller tunnels come out under $10M. That's a big nut to have to carry even at current interest rates.


LDiCosimo  (B License)

Nov 6, 2010, 3:55 PM
Post #2 of 9 (2686 views)
Shortcut
Re: [likearock] Paraclete XP for sale [In reply to] Can't Post

that number could or could not be steep. It all depends on how much the military training contracts that come with the purchase. and how long they last. a little bit of research and a good sales pitch to a group of wealthy investors could make for a great deal.


tdog  (D 28800)

Nov 6, 2010, 7:42 PM
Post #3 of 9 (2644 views)
Shortcut
Re: [likearock] Paraclete XP for sale [In reply to] Can't Post

So, your monthly loan payment for a 6% loan (impossible to get for a $30M business loan, but why not dream) would be $214,929.30 per month. I know a lot of people in real estate and getting a $300,000 loan for a new business is next to impossible. Imagine making a $30M pitch to a bank!

So at $1150 per hour, per their website, that is 6.14 booked hours per day for 20 years to just pay the mortgage at 6%... If electricity is 10% of their operating costs, then you are needing to book almost 7 hours a day. Add in insurance and property taxes, and I am starting to see VERY thin margins.

A reasonable investor paying cash for an investment would want to see 10% return. Now we are needing to book 9-10 hours a day solid.

If someone was rich and wanted a trophy, perhaps they should buy this tunnel. If they want a solid investment, I don't see it happening.


LDiCosimo  (B License)

Nov 7, 2010, 9:05 AM
Post #4 of 9 (2542 views)
Shortcut
Re: [tdog] Paraclete XP for sale [In reply to] Can't Post

I bet they do 10 - 12 hours per day easy. Skyventure tunnels are built to run.


likearock  (D 24640)

Nov 7, 2010, 9:31 AM
Post #5 of 9 (2539 views)
Shortcut
Re: [LDiCosimo] Paraclete XP for sale [In reply to] Can't Post

In reply to:
I bet they do 10 - 12 hours per day easy. Skyventure tunnels are built to run.

You still have to ask yourself if the larger size at XP is worth paying 3 times the price of a smaller SV tunnel. It's hard to see how they would be getting three times the revenue.


(This post was edited by likearock on Nov 7, 2010, 9:51 AM)


VTmotoMike08  (D 30399)

Nov 7, 2010, 12:17 PM
Post #6 of 9 (2495 views)
Shortcut
Re: [tdog] Paraclete XP for sale [In reply to] Can't Post

Every time I've been to paraclete, including weekdays, it has been packed. I bet they fly 12 hours a day on a slow day. When its really busy, it runs literally 24 hours a day for days on end. If you could break even at 10 hours a day then I bet you would make a ton of cash.

But then again, why is the owner selling if its making money?


mbondvegas  (A 49817)

Nov 7, 2010, 1:22 PM
Post #7 of 9 (2479 views)
Shortcut
Re: [VTmotoMike08] Paraclete XP for sale [In reply to] Can't Post

In reply to:
But then again, why is the owner selling if its making money?

Hmm...he will probably walk away with a LARGE LTCapGain....

Beaches...babes...and margaritas?

Or mabye to roll it into another start-up venture...to hopefully turn that one into an established and profitable business...sell it for a gain...and repeat!


(This post was edited by mbondvegas on Nov 7, 2010, 1:26 PM)


grimmie  (D 18890)

Nov 8, 2010, 9:56 AM
Post #8 of 9 (2308 views)
Shortcut
Re: [mbondvegas] Paraclete XP for sale [In reply to] Can't Post

I wonder what the yearly maintenance costs are?


Premier Remster  (C License)

Nov 8, 2010, 10:13 AM
Post #9 of 9 (2297 views)
Shortcut
Re: [grimmie] Paraclete XP for sale [In reply to] Can't Post

In reply to:
I wonder what the yearly maintenance costs are?

I'd guesstimate from a rough Rule of thumb: 10% of capital costs.



Forums : Skydiving : Wind Tunnels

 


Search for (options)