Explaination

The purchase price and improvement expenses for each tract are calculated based on a flat, average price/cost per acre. In reality, these values for each ranchette within a tract will vary based on a variety of factors, including but not limited to:

  • road frontage
  • water features
  • flood plains
  • pipelines
  • permanent equipment (oil pumps, storage tanks, etc.)
  • specific improvements on selected ranchettes
  • other geographic and access restrictions

We select projects based on our sales projections for all ranchette sales in a tract, understanding that some ranchettes will value higher and lower than others. As a result, there may be one or more ranchettes in a tract that sell for less than the combined average purchase price and improvement expenses, resulting in negative returns for specific ranchettes.


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