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.