Legal Question in Investment Law in Missouri
I plan to approch investors to purchase a Golf Course
I am going to approach investors to purchase a 230-acre golf course.
This golf course is a 9-hole course, with the other 9 holes laid out ready to be built.
The golf course is possibly valued at 3.5 million dollars, @ 9 holes, with a possible value of 6.5 million dollars with 18 holes.
The company that owns the course is willing to write off the loss & sell it for $650,000.00
My plan is to go in there and market it and build housing / townhouses/condos.
My plan is to get in there and get out in five years.
This course comes with a 10,000 sq ft. clubhouse, 2 swimming pools a full restaurant
A snack restaurant a fitness club, a pro shop, tennis court a hand ball court, 50 golf carts, two giant golf cart sheds, all grounds equipment, a liquor license and possibly a gaming license.
I do not plan to put any of my own money into this project. I plan to secure investor moneys. I would plan to relocate to run this project from marketing to building.
I am looking for a contract to have investors sign before I fly them to see the location.
2 Answers from Attorneys
Re: I plan to approch investors to purchase a Golf Course
You will need a couple of documents to not run afoul of federal and state securities laws. First, you will probably want a confidentiality agreement and non-solicitation agreement so no investor steals your idea.
To receive investor $ you will need a private placement memorandum and subscription agreement. You will probably want to create a limitied liability company or limited partnership to sell interests in. There are also so liability and tax considerations that will need to be explored.
Re: I plan to approch investors to purchase a Golf Course
Your instincts are correct regarding the documentation/contract you will need. The type of investment structure you invision is done all of the time in the purchase of real estate, esp. the purchase of a commercial building. While not extraordinarily difficult, the contract is of critical importance.
-- Kenneth J. Ashman; www.AshmanLawOffices.com; [email protected]
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