Frequently Asked Questions

1. How does an individual purchase their ownership?
A Limited Partner can either a) purchase their ownership interest ‘up-front’ via a fully paid-up one time investment for a ownership interest in the ranch or b) ‘finance’ their ownership interest by participating in a mortgage on the property. Any improvements to the ranch will be detailed and presented in the annual operating plan, and approved in advance by the owners. The ranch could have a combination of owners who purchase and a combination that finance their purchase via a mortgage.

2. Can an owner build a home or cabin on the ranch?
Yes; each owner will select and be designated an area on the ranch referred to as their “building envelope” where the owner may construct a dwelling. The location of each “building envelope” will be designated to compliment the ranch and ranching activities and to provide for “quiet enjoyment” for the owner. Each dwelling will be constructed so as to add to the permanent value of the ranch, and be constructed within strict building guidelines to create a common ranch look and feel. An owner has an option to build within their ‘building envelope’; they are not required to build within any timeframe and may choose to not build a dwelling within their building envelope. The dwelling can either be utilized as a permanent residence or for non-permanent use.

3. Why do we have a General Partner and multiple Limited Partners?
The structure of ownership provides for guidance, oversight and operation of the ranch by the General Partner, and cooperative approval by multiple Limited Partners. The General Partner is tasked with reaching cooperative approval of multiple Limited Partners in support of their common and unique interests and activities in the ranch. The original formation of the ranch will detail the common and unique interests of the Limited Partners that the ranch intends to support.

4. Does MyRanchsite own the ranch?
No; the Limited Partners own the ranch.

5. How does a Limited Partner realize a return on their investment?
The ranch will maintain a list of pre-qualified persons who have expressed an interest in, and who have made a holding deposit to secure their name on a list to purchase an ownership interest should a Limited Partner wish to sell their ownership interest. The fair market value of a Limited Partners ownership interest will be determined on a quarterly basis by the General Partner, and made known to the Limited Partner group in writing. The fair market value will include the value of the Limited Partner’s ownership interest and the value of the Limited Partner’s dwelling if constructed. The General Partner will work with each Limited Partner to value their dwelling based on present fair market value.

An existing Limited Partner will have ‘first right’ to purchase other Limited Partner’s ownership interest. Additionally and at any time, an 80% voting of the Limited Partners could authorize the General Partner to sell the ranch.

6. Will the Limited Partner have any additional ‘cash investment’ requirements?
During the formation of the partnership to purchase the ranch, MyRanchsite will provide a “proposed business plan and model” for The ranch. This plan will detail the investment requirements for the Limited Partner group. After purchase of the ranch, the Limited Partners will approve an annual operating plan for the ranch. This plan will detail any additional cash investments by the Limited Partners on an annual basis as proposed within the initial purchase plan.

7. What is MyRanchsite?
MyRanchsite is a Texas Company which:
a) identifies the ranch property to be purchased , develops the proposed business plan for the ranch, represents and organizes the Limited Partner group, and completes the purchase and closing of the ranch,
b) participates in the ranch as a Limited Partner, and
c) operates the ranch for the benefit of the Limited Partners

8. How does MyRanchsite participate?

a) MyRanchsite represents the Limited Partner group in all aspects while negotiating for the purchase of the ranch. MyRanchsite is not a real estate broker; MyRanchsite is a consultant to the Limited Partner group and is employed as a consultant by the Limited Partners.

b) MyRanchsite becomes a Limited Partner owner in the ranch by negotiating for a purchase price for the ranch that is more beneficial than the Limited Partner could obtain if purchasing independently. MyRanchsite may also choose to purchase an ownership interest. As a Limited Partner, MyRanchsite shares the same benefits and bears the same responsibilities as any Limited Partner.

c) MyRanchsite may receive a fee for operating the ranch for the benefit of the Limited Partner group. In return, MyRanchsite is responsible for the management of the ranch, development of the 15-year business plan for the ranch and maintenance of the annual and quarterly operating plans, debt and tax service administration, IRS and LLC reporting obligations, banking administration, project and site contractor, county agricultural exemption management, and general oversight of the ranch security and access. The annual operating plan details these considerations.

9. Are the Limited Partners passive investors?
The Limited Partners may be either passive investors or actively involved in the development and operation of the ranch. The Limited Partner may choose to be a passive investor at times, and may choose to be more actively involved in the ranch at times. Each Limited Partner is encouraged to be as active as possible within the ranch but enjoy the freedom of being a passive investor if they so choose. As an active participant in the ranch, a Limited Partner would choose to contribute time and effort to specified activities on the ranch. For example, a Limited Partner may have unique talents (road construction or fencing), and choose to oversee as the general contractor certain improvement projects on the ranch (construction of 2 miles of surfaced road or 2 miles of improved fencing). Compensation for Limited Partners engaged actively in development of the ranch would be detailed in the annual operating plan and approved in advance by the Limited Partner group.

10. Who is the General Partner for The ranch?
The General Partner for The ranch is MyRanchsite. As General Partner for The ranch, MyRanchsite Operating Company is a 1% owner in the ranch. The General Partner develops and provides to the Limited Partners for approval all annual operating plans for the ranch. The Limited Partners then provide their approval of all annual operating plans and provide those approved plans to the General Partner for management.

11. As a Limited Partner do I have a guaranteed return on my investment?
NO. The purchase of your ownership interest in the ranch is similar to the investment you have made in other real estate, for example your home. Just as it is likely that your home appreciates in value over time, industry market analysis of recreational ranches has shown an appreciation in value over time. It is not uncommon for rural ranch property to double in value every five to ten years.

12. As a Limited Partner, do I always have access to the ranch?
YES.