The ranch consisting of 1200+ acres (to be determined by survey) is being offered for sale at $3,950 per acre. The Seller is willing to consider offers less than the asking price. A purchase price of $3550 per acre is likely. The purchase contract would be written with the Buyer as myRanchSite or Assign. Upon completion of the due diligence phase, the contract would be assigned to the limited partnership consisting of nine (9) limited partner owners.
The ownership of the ranch would be:
- 90% Limited Partnership Group (15 LPs of 6% each)
- 9% myRanchSite Limited Partner
- 1% General Partner (myRanchSite)
Ranch Capital Improvement Projects
| Project Description |
Suggested Timeframe |
Budget Capital Investment |
| 1. Site clean-up and preparation for each Building Envelope (per site by Owner *) |
1st 9 months |
$15,000 |
| 2. Electrical and water feeds to dwellings (per site by Owner *) |
2nd 6 months |
$7,000 |
| 3. Septic system / waste water disposal (per site by Owner *) |
3rd 6 months |
$9,000 |
| 4. Wildlife feeders to supplement food sources and setup |
annually |
$15,000 |
Note: * Items funded by each LP owner when and if they choose to construct their personal dwelling. These costs are not included within the overall ranch capital contributions.
Ranch Operating Plan
An operating plan for the ranch would encompass the following elements:
a. Lease income derived from cattle grazing or partnership owned livestock
b. Lease income derived from day ‘for fee’ archery hunting (optional)
c. Lease income derived from pecan grower lease
d. Owners construct modest dwellings per guidelines and at owners discretion and personal expense
Under these plans, each of the fifteen (15) limited partner owners would contribute $35,000 at closing to fund the 10% down payment and closing costs of the loan, and a one-time assessment of $10,000 to fund identified capital improvements. No additional contributions for capital improvements are identified. Additional monies are outlined below for the annual debt service and funding of the annual operating costs of the ranch.
The use of the capital improvement proceeds is shown below followed by an explanation of debt service and annual operating expenses:
- Capital Contribution at Closing: $675,000
- Additional Capital Contribution: none
- Total of Capital Contributions: $675,000
- 10% Down Payment & Closing Costs: ($525,000) paid from above at contract signing and at closing
- Capital Improvements: ($150,000)
Mortgage financing with an LTV of 90% is proposed and available via rural ranch financing sources (Capital Farm Credit, First Ag Credit, Farm Bureau, etc). A 20-year amortization with 7.5% APR is proposed. Each of the fifteen (15) limited partner owners would contribute $25,000 per year for 20-years to service debt financing. The ranch would be owned free and clear after pay-off of this debt.
With the above operating plan, the ranch would not require a full-time manager / employee. Management of the ranch would be under direction of the limited partnership, and under the management of the General Partner. The General Partner would be responsible for the annual and quarterly operating plans, debt and tax service administration, IRS and limited partner reporting, banking administration, and oversight of the ranch manager. The ranch manager would be responsible for the ranch maintenance and upkeep, project and site contractor oversight, county agricultural exemption management, cattle grazing and any hunting on the property, and general oversight of the ranch security and access. The General Partner would be compensated $15,000 per year. Operating expenses for payment of taxes, insurance, ranch utilities, ranch maintenance and upkeep, and other miscellaneous expenses would average $15,000 annually. The total operating plan budget in Year 1 to Year 5 would then be $30,000 annually.
The summary of each limited partner owner contribution for capital improvements, debt service, and to fund the annual operating costs of the ranch follow:
Year |
Down Payment / Closing Costs and Capital Improvements |
Debt Service |
Operating Expenses |
Total |
Year 1 |
$45,000 |
$25,000 |
$2,000 |
$72,000 one time – up front |
Year 2 to Year 20 |
0 |
$25,000 |
$2,000 |
$27,000 paid annually |
Year 21 annually |
0 |
0 |
$2,000 |
$2,000 paid annually |
Ranch Sale or Disposition
The General Partner will establish annually the ‘fair market value’ of the property and present this to the limited partner owners for ratification. At anytime during the ownership of the property, a limited partner may indicate their desire to sell their ownership interest. The General Partner will manage all aspects of the sell of the limited partner ownership interest. The limited partner group, by invitation, will pro-rata have first right to purchase any ownership interest(s) offered for sell by the General Partner, followed by an offering to each limited partner individually. Should the existing limited partner(s) choose to not purchase an ownership interest for sell, the ownership interest would then be offered to a list of ‘pre-qualified partners’ from a waiting list. The General Partner will maintain the waiting list of pre-qualified buyers. In the event that an ownership interest(s) is not sold via this process, the General Partner will advise the limited partners and the ownership interest may be offered for sale to the public. The sell of the undivided interest would be per the existing terms and by-laws as established by the limited and general partner(s).
At anytime during the ownership of the property, the limited partners may via an 80% or greater vote choose to sell all or part of the property and all improvements to the property. The General Partner will manage all aspects of the sell as so directed by the limited partner owners.
Pecan Park Ranch represents one of the best ‘live-water ranches’ in the Texas Hill Country. With 1.5 miles of San Saba River frontage and an absolutely gorgeous pecan park setting, this ranch is truly one of a kind.
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