Monday, July 19, 2010
253.8 acre farm in Chicot county AR
Called Bill Ayres (cell 901-487-8774) Friday about this farm. Bill works for Keith Morris at Farmer's National. Price is $600,000 or $2372 per acre. Farm is on Bill Young road. Bill Ayres said that land like this could be rented out for $140 per acre per year. That sounds high. This farm was being used for catfish ponds, but there was too much foreign competition, so it is being converted to rice. About 2/3 is in rice now.
Tuesday, July 13, 2010
Farmland
Last night after tennis, Bill Carwell said that in Arkansas, farmland was renting for a low of $85 per acre per year and a high of $135 per acre per year. These are rough numbers. He said there was some really high quality farmland that had recently changed hands at $4600 per acre. Bill said that there were all different deals, but that one fairly common deal was to rent land for a low flat rate and then take some percentage of the profit (if any). That way the landlord gets a guaranteed minimum and a chance at more, whereas the farmer only has to pay the low flat rate if it turns out to be a bad year. Bill rents land for 25% of the profit and no base rent. I can't remember if he meant that he leases land TO other farmers or if he leased land FROM other landlords.
He said that it would be hard to buy farmland and make more than 3 or 4 percent on your money. His land is extremely flat. It is either dead level or it slopes 2 tenths of a foot in 100 feet ( I think). It is irrigated. John Brewer's land has been rented to the same farmer for 20 years. It is apparently rented on a percentage-of- profit basis. John would like to rent it for a flat rate, but does not know who to talk to about it. Apparently his current renter does not want to rent for a flat rate. John's land is not flat and is not irrigated. It would be too expensive to flatten John's land.
He said that it would be hard to buy farmland and make more than 3 or 4 percent on your money. His land is extremely flat. It is either dead level or it slopes 2 tenths of a foot in 100 feet ( I think). It is irrigated. John Brewer's land has been rented to the same farmer for 20 years. It is apparently rented on a percentage-of- profit basis. John would like to rent it for a flat rate, but does not know who to talk to about it. Apparently his current renter does not want to rent for a flat rate. John's land is not flat and is not irrigated. It would be too expensive to flatten John's land.
Thursday, July 1, 2010
Calorie counts in beverages
Pepsi 150 calories in 12 ounces or 12.5 calories per ounce
Propel 10 calories in 8 ounces or 1.25 calories per ounce
McDonalds sweet tea 230 calories in 32 ounces or 7.2 ounces per ounce
McDonalds nutritional facts PDF says there are 90 calories in 12 ounces of tea or 7.5 calories per ounce
Generic sweet tea (data from livestrong.com) 5.6 calories per ounce
Dietbites.com says there are 91 calories in 1 cup of sweet tea, which is about 11.4 calories per ounce
1 cup = 8 ounces
Propel 10 calories in 8 ounces or 1.25 calories per ounce
McDonalds sweet tea 230 calories in 32 ounces or 7.2 ounces per ounce
McDonalds nutritional facts PDF says there are 90 calories in 12 ounces of tea or 7.5 calories per ounce
Generic sweet tea (data from livestrong.com) 5.6 calories per ounce
Dietbites.com says there are 91 calories in 1 cup of sweet tea, which is about 11.4 calories per ounce
1 cup = 8 ounces
Monday, May 10, 2010
Trip to Oxford - 7-May-2010
Went to Oxford (Lafayette county) on Friday and saw 3 properties.
First was DeLa Vine II, right off of highway 6 as you come into Oxford from the West. Two story with commercial space on bottom and condos on top. 14,960 sq ft. Asking price is $2.2 million. David Hollinger 662-934-9148.
Next was a big warehouse at 927 Whirlpool drive which was vacant. It is near Ole Miss and whoever was in this before has moved out. Some sort of manufacturing company. Agent is Jones Lang LaSalle company. 422,000 sq ft on 58 acres. Price was not available.
Last was warehouse at 13 Industrial drive off highway 7 south of Oxford. 68,000 sq ft on 5.5 acres. List price is $1.5 million or $22.06 per foot. Colliers Wilkinson Snowden. Preston Thomas 375-4800. Talked to Preston by phone. Last tenant, Toro, was paying rent of $3.5 NNN (triple net). Preston Thomas said that was too high. He said that some one has the building under contract to turn it into a sports workout gym. That person has gotten approval from Oxford authorities to do the conversion. I don't know what taxes, insurance and property maintenance are on the property, but surely they are at least $1.5 per foot per year, so that makes total rent around $5 per foot which is what we used to get at NBC for small spaces. So I agree rent of $3.5 NNN is too high and that owner could only probably get ????? maybe $2 per foot?? At $2 per foot NNN, it shows a much less attractive return than at $3.5 per foot NNN.
Preston also has a retail center for sale in Oxford. It is 100,000 sq ft and is at hwy 7 and University. Asking price is $5.5 to 6 million.
He also mentioned that the "EC" building (Exact Commerce) on South street in Collierville near Shamrock is still for sale. It is 40,200 sq ft total with 5,270 sq ft being office. Price used to be $2.2 million and now it is $1.75 million and owner wants to sell and might go lower. There is a brand new tenant in building who signed a 3 year lease. The new lease provides $3 per foot NNN to owner, which is approx $10,000 per month free and clear.
First was DeLa Vine II, right off of highway 6 as you come into Oxford from the West. Two story with commercial space on bottom and condos on top. 14,960 sq ft. Asking price is $2.2 million. David Hollinger 662-934-9148.
Next was a big warehouse at 927 Whirlpool drive which was vacant. It is near Ole Miss and whoever was in this before has moved out. Some sort of manufacturing company. Agent is Jones Lang LaSalle company. 422,000 sq ft on 58 acres. Price was not available.
Last was warehouse at 13 Industrial drive off highway 7 south of Oxford. 68,000 sq ft on 5.5 acres. List price is $1.5 million or $22.06 per foot. Colliers Wilkinson Snowden. Preston Thomas 375-4800. Talked to Preston by phone. Last tenant, Toro, was paying rent of $3.5 NNN (triple net). Preston Thomas said that was too high. He said that some one has the building under contract to turn it into a sports workout gym. That person has gotten approval from Oxford authorities to do the conversion. I don't know what taxes, insurance and property maintenance are on the property, but surely they are at least $1.5 per foot per year, so that makes total rent around $5 per foot which is what we used to get at NBC for small spaces. So I agree rent of $3.5 NNN is too high and that owner could only probably get ????? maybe $2 per foot?? At $2 per foot NNN, it shows a much less attractive return than at $3.5 per foot NNN.
Preston also has a retail center for sale in Oxford. It is 100,000 sq ft and is at hwy 7 and University. Asking price is $5.5 to 6 million.
He also mentioned that the "EC" building (Exact Commerce) on South street in Collierville near Shamrock is still for sale. It is 40,200 sq ft total with 5,270 sq ft being office. Price used to be $2.2 million and now it is $1.75 million and owner wants to sell and might go lower. There is a brand new tenant in building who signed a 3 year lease. The new lease provides $3 per foot NNN to owner, which is approx $10,000 per month free and clear.
Tuesday, May 4, 2010
De La Vine II - Oxford MS
14,960 square foot 2 story building with commercial space on bottom floor and condos (now for rent) on top floor. Owned by David and Deanna Hollinger. Deanna's office number is (662) 234-1234. Address is 101 Ricky D Britt Blvd, Oxford 38655. David (662-934-9148 cell) said that there are 4 commercial spaces on ground floor which are approx 1870 sq ft each. He has one rented to a lawyer now for $2000 per month which is $12.83 per foot. There are 8 upstairs condos and they are built to be converted easily to commercial space if and when time is right. He is leasing these condos now because they are hard to sell. He is leasing for approx $750 per condo. So potential income right now is 4 x $2000 = $8000 downstairs and 8 x $750 = $6000 upstairs for a total monthly revenue of $14,000. That's $168,000 per year. $168,000 per year minus 8% vacancy and collection loss ($13,440) = $154,560. If expenses are 40%, then NOI is $154,560 - $61,824 = $92,736. So at a cap rate of 9%, building is worth $1,030,400 or about $69 per foot. It is priced at $2.2 million or $147 per foot !!!!!!!
Hollinger has the original De La Vine off Jackson (??) near an Applebees and some hotels. It is only one story.
Hollinger has the original De La Vine off Jackson (??) near an Applebees and some hotels. It is only one story.
Monday, April 12, 2010
Funds I learned about on Morningstar
VPCCX - Vanguard Prime Cap Core
VDIGX - Vanguard Dividend Growth
HABDX - Harbor bond fund - bought $100,000 of this today (12-apr-10) for Nickey Getwell Mini
VDIGX - Vanguard Dividend Growth
HABDX - Harbor bond fund - bought $100,000 of this today (12-apr-10) for Nickey Getwell Mini
Monday, April 5, 2010
sold vanguard total bond fund
5-April-2010
Today I exchanged the approx $77,000 that I had in the Total bond fund (VBMFX) in my personal account into two new bond funds.
VFICX - Intermediate term investment grade bond fund
VWEHX - High Yield Corp bond fund
I did this because I discovered that VBMFX is heavily invested in US Government securities and US mortgage backed securities. I do not want to invest in the US Government and also want to get a higher yield on my money. 40.1% of the VBMFX fund is invested in Treasury/Agency funds and 31.4% is in Government Mortgage-Backed funds. That's almost 72% of the entire fund!!!!
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