Margaritaville (I've Bought A Golf-Course!)

[Eskil]

@SteveO - My wife and I were just talking about you the other day. She was asking me if I had heard anything on how you were doing
Thanks for sharing the detailed updates! Sounds like a lot of work but a lot of reward coming your way too..

Also;

We also have filled the golf shop with retail items for sale

Some of the members on here (I'm looking at you @Catalyst and @kamanuci ) have golf products - you guys should talk!

 

[GuestUser450]

I briefly ran a par 3 short course built on hard pan northern arizona grass(dirt). Irrigation issues every day, seed-eating birds, free-golf retiree workers - it was the worst. This thread makes me miss it.

 

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[biophase]

over 50...

Just to put that into some perspective, it was only like 3 years ago right? maybe 4?

 

[phenom4hire]

I guess that explains some of it. I know plenty of soldiers/marines included who aren't that bright so I don't really know what that would have to do with it. Sounds like he just has a good outlook on life and a good head on his shoulders in general.

 

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[Camo & Gold]

Steve O-

While I only read the first page of comments, I am going to school to manage turf grass on sports fields and golf courses. Well not specifically but that's apart of it...

Anyways if you need any assistance in your endeavors feel free to ask, I've worked on 2 golf courses and one of which I interned at a TPC course. I am more oriented on the Research aspect of the industry as I would like to develop my own grasses BUT I still know a thing or two about managing golf courses.

I hope all goes well, there's nothing more relaxing than watching the sunrise or set on a golf course with a nice cup of coffee.

 

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[MKHB]

How many folks here can claim to have owned millions of dollars in apartment units? And then sold em only to go on and buy a golf course?

This outcome personifies a Fastlane destination, AND a Fastlane beginning.

Marked GOLD. My simultaneous congrats to @SteveO as well as an apology -- this is long, long overdue.

Gold??? This should be the first "Brass" thread.

Anyone that sells a portfolio of income generating safe investments and buys a golf course on spec, has got a pair of you know what.

 

[SteveO]

Anyone that sells a portfolio of income generating safe investments and buys a golf course on spec, has got a pair of you know what.

I like to think that I have no fear. But there are clear risks!

Income generating safe investments are not really safe at all. There is not a lot of cashflow in these deals like people think. I was in them for the value-pop. That is where the money is. But it is not always there. The market ebbs and flows and must be timed. That is why I pulled out!

 

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[G_Alexander]

More pics

My brain feels better (when comparing before/after)!

OCD complete. 5S Organization of the equipment looks good, Steve

 

[SteveO]

Got a course map book for sale at the counter?
App for $1.99 that has yardages and helps put their score in the system? (Could use for coupons)
What do you use for online booking?
Got a players club for off peak hours discounts?
Local college professors that would like to use your course as a lab for agronomy, horticulture, turf grass, etc.?
Most colleges with agriculture programs will allow you to send a soil sample, then recommend what to add to get certain things to grow.
Interns from local mechanic school?
Oldest son recommends you download SimGolf and try to put your course in. One of the keys in it is creating points of interest on the course that stimulate conversation.
Good overhead picture / map to put a dot for problems on the course. Might help identify issues and trends.
Add a pin positions map to the carts. Make sure the starter tells them.
Charity golf tneys..... lots of sponsors....

Random thoughts.....

Easy now... too many things at once!

We are working on some of these things but absolute fundamentals are the focus for now.

Thanks.

 

[nath1027]

Not really wasting away though. Too bad that I don't drink alcohol!

My wife and I have just gone under contract to purchase a golf course in Arizona. It is a major decision for us.

We are sitting in the prime situation of having enough income to live off of from our properties. So, it makes sense for us to dive into a business that we love!

It is a full golf course with eighteen holes, a practice range, and clubhouse.

The course is in bad condition with a large investment fund owner that does not seem to understand that you need to put money in to get money out.

There is still a full range of due diligence to be completed but we have done a lot of it already.

Seems that just sitting or goofing around is not in the cards....

Incredible. I'm really excited to sign onto forums Im really trying to take my life to the next level and constantly am getting scammed or into situations purly for profit so I'm very happy to be apart of a source of entrepreneurs such as this.

This has been ver motivational to read, I really hope you get it all sorted and hopefully I can come use the course sometime. People like me could learn a lot from someone like you Stevo.

All the best.

 

[Get Right]

Sorry to bump an old thread but I was just wondering how things are going with the course? I love reading the updates!

I've heard the course is in great shape! I'm scheduled to play it in February.

 

[MJ DeMarco]

Thanks for the update Steve, my well wishes for continued progress on your health challenges.

 

[SteveO]

I drove by Silverado yesterday and people were still golfing. Maybe you can keep it open and schedule groups going out every 30 minutes instead of 15? Or only do singles or two-somes?

We are still sending people out on the course. Many of the snowbirds have left though leaving a large gap in play. Our daily volume has dropped significantly. We are not worried. We will adjust to whatever happens.

If the volume drops low enough, we will send out one person per cart. We may also place a requirement that the flagstick does not get handled.

 

[SteveO]

I am fully licensed as a commercial applicator for the chemicals we use and take all the safety precautions. The lakes are another story. We receive treated effluent water but the water company is well known for cutting corners.

My heart is as strong as they come. I maxed out the stress test last year. I automatically have my heart tested every year due to diabetes. Heart is good though.

 

[ZCP]

And if it doesn't, it will make some nice slides in your next presentation .... can add it to the cat tail list!

 

[SteveO]

This is awesome. I saw your first post and skipped to the end to see whether it was still active.

Now have to get some more coffee and read the other ten pages. ;-)

Friend of mine sold his training & consulting business about 20 years ago for $30M. He was a big golfer and somehow got the idea to start a brand new upscale course in upstate New York. Found open land, hired Jack Nicklaus for $1M to design it, everything. One of my former sales guys was his brother in law and worked the project with him for three years. I still remember him calling: "Hey, we were just up in a helicopter with Jack Nicklaus flying over the property to take photos for the design." It was all pretty exciting.

Regrettably, his deal went completely down the toilet. Big losses. It was an excellent lesson in learning about understanding the market, demographics, regulatory issues, all of it before jumping into something by buying a big chunk of land in the middle of nowhere and hiring someone famous for something you have zero experience doing.

It sounds pretty dumb summarized like that, but that wasn't at all clear back in the day. Live and learn.

Half of our course was designed by Arnold Palmer. The other half was modified by his team. He played a round here many years ago.

Part of our redesign was required due to anticipated green speeds. Back when the course was designed, green speeds were typically 8-9 on the stimp meter. Today they are more like 10-11. We could not accomplish this with the undulations on the greens. The new grass we are installing will work best at higher green speeds. So, we are reshaping to have character and allow for the speed.

It costs a lot of money to build a golf course. Not too many being built anymore.

 

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[MetalGear]

Half of our course was designed by Arnold Palmer. The other half was modified by his team. He played a round here many years ago.

Part of our redesign was required due to anticipated green speeds. Back when the course was designed, green speeds were typically 8-9 on the stimp meter. Today they are more like 10-11. We could not accomplish this with the undulations on the greens. The new grass we are installing will work best at higher green speeds. So, we are reshaping to have character and allow for the speed.

It costs a lot of money to build a golf course. Not too many being built anymore.

 

[Antifragile]

I thought you never hurt any animal, even a bug. But those gophers destroying the course, I can see why!

He didn’t. The trap did.

 

[SteveO]

He didn’t. The trap did.

Time for trap control!

 

[YoungGun]

What an investment you have!
Not only are you starting a business and contributing to a great game, the land is a great asset as well!
Good luck to you.

 

[SenGracic]

Legendary move SteveO !
Congrats on your purchase, I hope we can see some pictures soon !

 

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[Catalyst]

Did you just get a big sale?

Nope, just messin with steveo, green grass accounts are usually only about 10 stocking units and independants usually want to consign , so to put in perspective 200 units went out before breakfast yesterday

 

[MKHB]

@MKHB
"You must be very real estate savvy. This is very exciting, yet complicated endeavor-you got some big ones."

Nope. All the golf balls are the same size...

So you were able to depreciate over 10M of the 15M purchased assets (not including land) at a faster rate?

I am hoping to do a reverse exchange as well.

That's great. I wasn't sure if it was Ancala in Scottsdale, the Havasu Course or the one in Yuma you were after.

Did not want to ask, until it went thru. Small world! That cost segregation spread sheet I sent you was
the one we did for CNL for Ancala, before they sold it to the new owners ( CF/Fortress) the guys who own the hockey team down there).

 

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[MKHB]

I was actually interested in the one in Havasu (36 holes). My wife tends to throttle me back a bit. I have played Ancala before. It is a very tough course! Too expensive for me right now. Most of those courses in Phoenix don't cashflow very well. I need the cashflow to make a transaction like this work.

Well said, most people don't understand that really picturesque courses are not big money makers. I know of no less than 5 Pete Dye courses that are absolutely magnificent but are also in "quiet" receivership stage.

Your course is gonna be a monster.

Can't wait to come down there and play it winter of 2016.

Good luck @SteveO

 

[Bigguns50]

@SteveO ... First...CONGRATULATIONS ! This thread is a BLAST to read. I can only imagine how you feel owning a course !

@ryanbleau ...Many damn good points !

 

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[SteveO]

FWIW, whevever I played golf I always felt like I was bothering everyone else. I was either rushing the people in front of me on the rare occasion I was playing well, or annoying the people behind me. I was always concerned about making sure I was playing fast enough, which caused me to rush a lot of my shots (especially as I normally didn't use a cart to cut down on costs). It got to the point where I didn't want to play much anymore...why go spend 4 hours where you feel like you're annyoing everyone whenever you accidentially shank a ball or miss a couple putts or decide to walk the course for exercise as opposed to renting a cart?

Thanks for the reply and input.

The best way for newbies to play is to go during the off times. If you cannot do that, then pick up the ball when you are 3 over. That is what I tell my beginner buddies that play with me. I have asked the starter to put us in a smaller group since we have new players also. This gives us more time.

Walking the course should not take you any longer than using a cart. Just the logistics of it allows you to walk straight to the greens.

 

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[SteveO]

I apologize if I've missed something, but have you shared any deal metrics? I'd love to hear what kind of numbers you're seeing with a golf course as compared to residential/commercial/industrial real estate, or something like a c-store or restaurant franchise.

Moved to the inside...

 

[Holeshot]

If it turns out that the pipes are also clogged, there are companies that will jet-clean/vacuum pipes. They basically use a super-powered pressure washing head on the end of a hose, along with a vacuum/tanker truck. We've used them to clean out culverts, but they also do septic fields, sewers, etc.

 

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[LibertyForMe]

Bluestone. It's a chemical that kills plant life in a lake. I'd take a look into it, might help keep it from growing.

 

[biophase]

Steve,

Bales of straw can also control algae in ponds, but it sounds like you don't have algae but have more of a mechanical debris problem from years of neglect. What I was thinking was that you could move your water intake to the center of the pond. I'm guessing it sucks from near the bottom and one of the sides now? I guess you'd need to figure out where the water is the cleanest and attempt to put the inlet there.

Is the water clear, or is there muck floating around all the time because the water is moving so much?

 

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