Realcent.org

toomuchcopper wrote:I have read over most all the documentation.

My main concerns (without getting into if there is silver worth mining or not) is the access.
1. the property appears to be very steep and in a ravine of sorts...
2. Is there an actual right of way on these roads that would give you the right to widen them for truck access, what would that cost and is it feasible? Seems like you could spend a couple hundred grand just making roads to access the sight, if the severity of the terrain would even allow a road to be made.
3. What is the permitting process for such a venture....EPA considerations, State govt, fed govt, town bylaws, etc.etc. and what is the cost of permitting a venture like this....I know in VT, you could never do it, Just to open a gravel pit, it costs over $100k just to do the studies neccesary to get the permits.
4. comparable sales, someone else mentioned this but there must be some comparable sales, the RE agent should be able to provide any and all comparables. I am sure that his commission on this deal is 6-10% so he should be able to spend a few hours getting some info for you.


just some thoughts for you....

These are all good questions. That is why I recommend we use the "Buy & Hold" strategy for this investment. I do know that patented claims have less gov't hassles than unpatented claims.

Yes, the roads in the area are public right of ways. Old army 6x6 trucks with dump beds can negotiate these roads the way they are.

The Idaho state gov't is helpful to companies extracting resources to improve the Idaho economy. The Feds have a policy since Nixon started the EPA, of hindering resource extractions. When he closed the gold window, he put up federal lands, parks, wildernesses, etc. as collateral for the federal debt.

I asked Kevin the RE Agent about comps and how the owner came up with the $1.8M asking price. His reply:

"Coming up with comps is tough. I would say he came up with the asking price based on the amount of silver he believes is in there and on future values. I discussed the mine with Herb yesterday and one thing that came up in conversation was whether or not he was willing to carry paper. He would prefer to get cashed out, but would carry some for a short period (1-2 years). Let me know what you think."

If there is any thought of obtaining a loan on this property, there would have to be an appraisal done. The appraisal would HAVE to have comps to support the value. Personally, I would want to see an appraisal of the property by a licensed appraiser to help determine value before maing an offer. It would seem to me that 1.8 million is a random number based on speculation. NO ONE in there right mind would buy property based on the fact that silver MIGHT rise in value.
I am not trying to be discouraging here but being a veteran real esate investor and a licensed real estate agent myself, I do have a tiny bit of experience on this subject.
based on the fact that the price is based on the amount of silver and the price of silver, then if the price of silver was $17 then the property would only be worth 800-900k....and if silver goes to $70 then its worth 3.6 million???? I honestly find that a little hard to stomach that a property can be valued like that. But, I do not have any experiencee with mining claims and it very well could be that this is how they are valued.

So, let me ask this question.....if silver doubles and your share value (lets say 1k) doubles with it then you have doubled your money to 2k but you would have to sell your share to get the profit, how hard would that be to do? If you bought 1k worth of silver eagles and silver doubled you simply sell them and take your profit without hardly any work at all. My point is, where is the big upside to the venture....is it that you are hoping that there is a lot more silver there than what they are valuing it at? If so, how do you ever determine that until it is mined?

I think the idea is great, its fun and exciting to think about being part owners of a silver mine, heck I want to own a silver mine too. I am just not sure if its a good investment.

http://listings.sellidaho.com/idx/3724/ ... D=98457195

http://www.magicvalleyrealty.com/land-s ... mit=Search

http://www.goldandsilvermines.com/all.htm

http://www.goldminershq.com/stores/claims1.htm

http://www.realestatelosangeles.com/16U ... 9925/MRMLS

http://www.mlmines.com/real-estate/list ... =5&limit=5

http://www.icmj.com/properties.php

http://www.us-silver.com/s/NewsReleases ... Mineral-...

oops...posted same twice

Pretty interesting discussion.

Why wouldn't/couldn't you just lease or rent the rights to the minerals on the claim to another group that is already set up for mining? Maybe this idea has been brought up already, but it seems to me, is a far better option than a bunch of investors attempting to learn how to mine this themselves.

For my investing dollar, I would want this claim to be worked. There is no point in letting it sit. If I wanted to simply invest in the price of silver, I'd take my investment dollars and head to the buy it now section of Realcent. Right?

IF this is actually something realcenters want to do - why not do some research and maybe buy a more reasonably priced claim? I know nothing of mining, or claims, or the rules involved in owning, buying, selling or working the land - but is this particular claim rare? Do these surveys reflect that this claim is in the top 10% of claims being currently worked or offered for sale? 30%? 50%?

Sounds to me that the logistics of the location have, to this date, prohibited someone from working the claim - and only now that silver is gaining is it realistic to start mining it. Is this correct? If so, then we would be taking on far more risk depending on the future value of silver. What if this claim cannot be worked for profit if silver falls below $X.XX? Be real interesting to know what it would cost to work, and what price silver would need to maintain to stay profitable. Could be just real expensive hunting land!

That all being said - I do like the concept. Would certainly be fun to do something like this collectively amongst this group. Count me as moderately interested.

I have spent several hours researching claims and the buying of claims. It seems to me that in a lot of cases, if a company is going to spend the MILLIONS of dollars to start mining an area..... they come in and buy every mining claim within a 5 mile radius and they then own everything to do whatever they need to do.....
perhaps another approach would be a corporation that bought small claims....if you bought 10,000 claims at 1,000. each you would only have one mil invested and have 10k chances to be in the right area that a company wants to invest in. If we are in this for a buy and hold wouldn't it make more sense to be somewhat diversified in to different geographical areas and not have all your eggs in one basket? just a thought....

This is a very interesting idea. I would love the thought of realcent owning a mine. It seems a rather risky proposition though for people who have little idea what they are doing. I am definitely interested.

Snake42 wrote:This is a very interesting idea. I would love the thought of realcent owning a mine. It seems a rather risky proposition though for people who have little idea what they are doing. I am definitely interested.

Most investments are risky ideas for those who don't know what they are doing.

One of the questions I will pose:
Why do we as a forum with under 1000 members, have to buy a 2 million dollar mine?

DeanStockwell wrote:One of the questions I will pose:
Why do we as a forum with under 1000 members, have to buy a 2 million dollar mine?

It's not a mine. It's a mine claim (no equipment). A mine is very expensive to run.

I'm not meaning to stomp on Idahocopper's offer but... All this exuberance is really funny. It makes me want to offer a claim in AZ. Maybe take a commission.

If you want to form an investment pool that speculates on the price of silver, than why not try something with less overhead?

1,000,000 will buy a lot of leverage to deal with liquid assets. A mountain top mining claim, with a 25 year old assay report, with mining claims all around it and primitive dirt roads, no equipment?

You all are willing to put up thousands of dollars each?

I respect you guys greatly and I would invest with you all. But you seem to be letting this offer run your investment decisions.

You all are backward engineering the process.

If you do form a corporation, I will be rooting for you though ,and I will hope my instincts are wrong. I love to see good people get rich.

Please be careful.

Ditto Eric's response, my first reaction was "Oh, hmm...sounds great on paper, but, this could lead to complete havoc and division in RC if anything goes wrong not to mention the failure of the venture. I like the creativity and unity, but be careful!

Roadrunner wrote:Ditto Eric's response, my first reaction was "Oh, hmm...sounds great on paper, but, this could lead to complete havoc and division in RC if anything goes wrong not to mention the failure of the venture. I like the creativity and unity, but be careful!

yeah those are basically my thoughts. But if shares were cheap Id buy a few just for fun.

Roadrunner wrote:Ditto Eric's response, my first reaction was "Oh, hmm...sounds great on paper, but, this could lead to complete havoc and division in RC if anything goes wrong not to mention the failure of the venture. I like the creativity and unity, but be careful!

If things go wrong? Of course things will go wrong. Even if this is a success, things will go wrong.

Any investor with a mature attitude will understand that. It's not put your money up and collect later.

It' put your money up, put more up..deal with a problem , a laywer. put more money up... deal with the unexpected.

Argue fight, work it out.. and if it's a good deal then cash out (which is also going to cost money).

I dont want to be negative here but I think Theogy is right.

I think if you want a silver mine then buy what you can on the stock exchange. If its the silver your after then buy silver. If its the forested land you are after buy some or even a cheaper fix, go camping. I think its risky to mix all three together. I still think its a cool idea.

The more people comment, the more I worry about this idea, although it is very interesting.

.
if you don`t have it in your hand you don`t own it.

who has that kind of money anyway.



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I don't really like to throw a bucket of cold water on this. But RealCenters do not have enough money to attempt a project this size. It was certainly worth my efforts; and worth the time it took for the thoughtful considerations of the many, to come to this conclusion. Thank you for everyone's participation.

I think the potential upside of a silver mine (in general) is the possibility of 100x or 1000x returns on each person's investment. A mine is one of the few investments with that potential. Of course, like any investment, there are no guarantees, only potential.

I think this group is solid enough to attempt some kind of project together. The problem is to find an appropriate project for the money available, and the interest given. Since only I have the details of all the pledges, I will caution everyone to only consider projects in the $50,000 or less range.

As of Monday morning, here are the Idaho mine stats:
There are 31 interested persons. 14 with High interest; 16 with Medium interest; 1 with Some interest.
17 persons have given some indication of the amount they have to invest, with many qualifiers.
So far we have "soft pledges" totaling $230,700.
14 persons indicated interest without indicating any amount.

IdahoCopper wrote:

Corsair wrote:Are you just going to assume that he won't take anything less than $1.8M? If you have some serious interest (which it looks like Realcent does), you could tell him about that and see how low he'll go. If he's getting that old, one million or one point eight million isn't going to make much of a difference.

I agree that we would offer less than $1.8M. That is one of the factors that make it impossible to determine a share price at this early stage.

So far, the RealCenters have offered "soft pledges" only equal to 12.65% of the asking price. We cannot make a serious offer at that level.

Over the next week, more pledges will come in, and perhaps some heavy-hitters will step up and want controlling interest in the venture.

I have some contacts with significant money who are aware of this opportunity and they may want in. I won't know their level of interest for a few more days. Other RealCenters reading this should also be spreading the word, and giving the link to this topic to their contacts with significant investment potential.

We can do this.......a group this size definitely has the potential to gather less than $2M for a good investment like this.

The main point is WE ARE BUYING SILVER. Just because it is still in the ground does not change that FACT.

No, you are buying into a hope that there is enough silver in the mine to cover the 1.8 mill and than some.

highroller4321 wrote:

IdahoCopper wrote:

Corsair wrote:Are you just going to assume that he won't take anything less than $1.8M? If you have some serious interest (which it looks like Realcent does), you could tell him about that and see how low he'll go. If he's getting that old, one million or one point eight million isn't going to make much of a difference.

I agree that we would offer less than $1.8M. That is one of the factors that make it impossible to determine a share price at this early stage.

So far, the RealCenters have offered "soft pledges" only equal to 12.65% of the asking price. We cannot make a serious offer at that level.

Over the next week, more pledges will come in, and perhaps some heavy-hitters will step up and want controlling interest in the venture.

I have some contacts with significant money who are aware of this opportunity and they may want in. I won't know their level of interest for a few more days. Other RealCenters reading this should also be spreading the word, and giving the link to this topic to their contacts with significant investment potential.

We can do this.......a group this size definitely has the potential to gather less than $2M for a good investment like this.

The main point is WE ARE BUYING SILVER. Just because it is still in the ground does not change that FACT.

No, you are buying into a hope that there is enough silver in the mine to cover the 1.8 mill and than some.

Highroller, I couldn't agree more with you.

Folks let's remember the old adage, if it sounds too good to be true....you know the rest.