175 acres with 65 acre lake

im trying to purchase this property and looking for the best avenue commercial loan, hard money, or? currently has 3 million +yards of gravel. that is avalible to mine with all permits in place. any possability that gravel could be used as colatral.? i was thinking about trailer park, rent a lake for a day, trophy fishing ponds, company retreat. it is 3 miles from town of 30,000. 8 miles to the next town of 60,000. 30 miles to city of 200,000+. simple words its not in the middle of no were. i have all the equipment to develop the site. any and all ideas are welcome

asking price 1.8 million
gravel value 12million
the owner is well past retirement and is looking to move his cattle to greener pastures.

Hi Fish,

        The first question I have for you is "Do you intend to run and operate this property as aggregates quarry?"

The property is probable priced as an aggregates operation and the owners are probable asking a lot more than land value!

Now you write that 3 million plus yards of gravel exist on the property. How was this determined (Bulk sampling, trench testing, pothole testing, reverse rotory drilling?) and was a geological report written?

The 3 million yards if mined and excavated would reduce the elevation on 105 acres by 18 uniform feet across the property changing the elevations and potential use of the land! An excavation of 53 acres would reduce the elevation on this acreage by at least 36 feet.

Is there an existing quarry today or was this 65 acre lake the original quarry which was contoured around the edges and filled with water? What is the water table on the property?

Most commercial lenders will find this kind of property outside of the banks expertise and ability to estimate risk! Most aggregates properties are paid for by cash!
An aggregates quarry having been permitted probable prohibits any secondary use until reclamation and remediation has been completed and the mine has been permanently closed.

Is there a reclamation bond posted for the property and was a cost of reclamation and remediation estimated during the permit process?

What is the demand and current supply of sand and gravel in your area? 30 miles is reasonable to truck aggregates! Do you also have sand?

I take it the gravel meets specifications for concrete and base gravel for construction purposes?

The gravel is worth $4 a yard before trucking cost’s are added?

I have some thoughts but let me know the answers to my questions here before I form a reasonable way to acquire this property!

You can PM me and give me a phone number if you have other questions.


Sounds like a vary large project for someone asking for ideas! My suspicion is that if you have to ask, it is probably a bit too big to undertake. However, alot of bigger deals do have components that could help in the acquisition.

Regarding the gravel, you might want to make some inquiries with several companies on what amount you could get for selling this, in the event you purchased the property. You could also make a contingency (if seller accepted this) in your contract that the offer is subject to selling the gravel for $ x amount of your choice. You could then use that money as a substantial down payment to assist in getting approved for a loan.

There is a loan program available that is guaranteed through a federal agency that you could use to buy and develop a mobile home park, an apartment complex including mixed use, and senior multi family housing. This program typically takes 8 or 9 months to close but is a fabulous program with great terms.

Regarding the lake, I’ll just say that one of my most successful mentors from many years ago gave me some advice aobut lakes and pools…that is to fill them in with sand! No water equals no liability!! When you begin to make lots of money and develop a high net worth, you will not want water on your property, except that which falls from the tap.