Paraclete XP for sale

[likearock 1]

http://www.loopnet.com/Listing/16796155/190-Paraclete-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 0]

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 0]

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 0]

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

[likearock 1]

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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.

[VTmotoMike08 0]

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 0]

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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!

- - -
I am not afraid of tomorrow, for I have seen yesterday and I love today.

[grimmie 173]

I wonder what the yearly maintenance costs are?

[Remster 24]

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I wonder what the yearly maintenance costs are?

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

Remster