Homes Abroad the UK's leading guide to Holiday Homes Abroad

  • 1
  • North Dakota
Price £30,041
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Property Description

In the Western section of North Dakota there is a small town defying the laws of economics in the current US recession.

Williston, North Dakota is going through an economic boom due to the ‘Bakken Formation’ oil fields. With more oil in reserve than Saudi Arabia and the UAE combined, the pressures from this rapid growth are evident.

According to recent reports there could be as much as 24 billion barrels of oil in the Bakken
Formation.

The Project

Workers from all corners of the United States are coming to Williston to secure stable well paid jobs of
$80,000 - $100,000 + per annum. A side issue of this influx of workers is a need to shelter them. Many of these men and women are sleeping in tents and cars and the number grows weekly

Currently an immediate demand for more than 1,500 beds exists.

A solution has been designed and produced in the form of the Mini Motel. Each room will be 26’ 0” x 12’ 8” (331sq ft) and will be fully furnished with beds, sofa, table, shower, wash basin, toilet, TV, microwave and WiFi connectivity. Occupants will get all the home comforts of a full size hotel/motel room. Demand has driven room rates up to $125 per night for single occupancy. We will charge
$100 per night for a single room. Higher rates will apply for multiple occupancy. The units are priced at $47,000 per single room or $900,000 for an entire 20 room Mini Motel.

The Projected Income / Expenditure

Type Single Room 20 Room
Mini-Motel

Notes

Cost Price $47,000 $900,000 Price Per Unit or Block
Gross Annual Rent $32,850 $657,000

Based on $100 per night at 90% occupancy for 365 days*

Annual Expenses $14,783 $295,660 Hotel Management, Internet Advertising

Pre-Tax Net Profit $18,067 $361,340 Gross Annual Rent

*Rents for a single room in the region range from $135 - $180 per night.

That equates to a massive 38.44% return on your investment for a single 1 unit year, and 40.14% if you buy a block of 20 units.

Possible additional expenses not included in the Pre tax NET figures shown above: -

• Federal and State Income Tax
• CPA (Accountancy) Fees
• There may be nominal repairs, although not in year 1 as there is a 12 month guarantee on everything
• An extended warranty on the building and electrical goods, at a cost of $450 per annum per room is available. This is entirely optional.
• There may be a requirement to re-paint every 18 - 24 months, but this is a nominal cost under $1,000. All units are fully insured.

The NHH ‘Mini Motel’ Room

Each Mini Motel contains 20 self-contained suites. These will be charged by the day and rented to workers for 4 week periods at a time. Rent must be paid in advance with both a 4 week notice required and a security deposit taken.

Each suite is self contained, secure and fully furnished. All have the following durable features:

Double, Queen or King size Beds. Multiple occupancy commands a higher rent rate.
Sitting/Bedroom
En-suite Bathroom
Microwave
Flat Screen TV with cable
WiFi Internet ready
Lockable dead bolt door
Lockable screen window
Heat Thermostat
Smoke, Carbon Dioxide Alarms
Fully insulated for extreme cold
Rent includes all Utilities, Cable/Wi-Fi costs, VOIP Phone (calls charges extra), cleaning.
Breakfast and Evening Meals available at additional cost

Investors benefit from our reduced costs when buying a complete 20 room block

Hundreds of oil workers are currently living in ‘Portakabin’ style rooms or even in converted shipping containers.

If they can’t find accommodation in one of these rooms they will sleep in a tent, their car or a caravan/RV. Not ideal living conditions in the bitterly cold winter months, just 50 miles from the Canadian border.

Cold and crowded accommodation is not
what these workers need.

The ‘Mini Motel’ offers a cosy, comfortable and secure alternative.

Product Profile

A ‘value-added’, technologically-advanced, pre fabrication home building system with active focus on lean and green related projects

The inception the ‘Mini-Motel’ came from years of research of the modular field. A concept of producing housing units in the same manner that the car companies produced automobiles was the beginning of the system built housing concept. After months of planning, incorporating experts in the field of lean manufacturing and plant engineering, the concept was perfected using high quality building materials, ‘just-in-time’ delivery solutions and experienced quality assurance personnel, this concept was ready to be implemented.

After the concept was perfected, quick and affordable housing methods would lead the way in both single-family residential as well as multi-family units. The ability to react quickly and with a floor plan and process, our system can replace conventional building methods within days at a more affordable cost. Nearly $4.5 million to date has been invested perfecting this concept. The initial investment was used to perfect the designs, process, quality assurance manuals, certifications, leasehold improvements, as well as purchasing and installing all the required equipment necessary to produce as many as 1,600 units per year.

With the present location of the manufacturing plant being in a HUB Zone, it allows for special consideration for federal projects. With the Federal Emergency Management Agency (FEMA) there is an entirely different market in replacement housing and emergency housing, as well as international housing needs that we will be equipped to undertake.

Room Floor Plan

Williston North Dakota
Housing Demand

See the local press articles and videos below regarding the housing situation now and facing Williston North Dakota.

http://money.cnn.com/video/pf/2011/10/20/pf_boomtown_walmart.cnnmoney/
http://edition.cnn.com/video/#/video/us/2010/11/24/bolduan.boom.town.crisis.cnn
http://www.willistonherald.com/articles/2010/07/06/news/doc4c33535735c93584255331.txt http://www.willistonherald.com/articles/2010/09/20/news/doc4c9780a43d271111867487.txt http://www.commerce.nd.gov/news/detail.asp?newsID=819
http://www.nytimes.com/2010/04/21/us/21ndakota.html
http://www.youtube.com/watch?v=nM80uuQSsI0
http://www.youtube.com/watch?v=WLL_-_xf9VU&feature=related
http://www.youtube.com/watch?v=x7vfqyivJ6k&NR=1

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