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.

Asked on 9/29/04, 1:57 pm

2 Answers from Attorneys

Andrew May May Law, PC

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.

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Answered on 9/29/04, 5:49 pm

Kenneth J. Ashman Ashman Law Offices, LLC

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;; [email protected]

The information provided by Ashman Law Offices, LLC (“ALO”) is for general educational purposes only. No attorney-client relationship is established by this communication and no privilege attaches to such communication. ALO is not taking and will not take any action on your behalf and will not be considered your attorney until both you and ALO have signed a written retention agreement. There are strict deadlines, called statutes of limitation, within which claims or lawsuits must be filed. Therefore, if you desire the services of an attorney and decide not to retain ALO on terms acceptable to ALO, you should immediately seek the services of another attorney.

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Answered on 9/29/04, 6:13 pm

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