This program is fully implemented and is acquiring property.
The pace at which we expand will depend on many factors including time to analyze and design strategies.
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In the next few years Chimorel and Warren will be acquiring approximately $50,000,000 worth of property in the greater Columbus area and in other major US cities.
As this acquisition program proceeds, we will establish a Property Management company. We will establish acquisition programs in major U.S and eventually world wide cities. Chimorel anticipates acquiring or developing large scale recycling centers, plastic reclaim plants and recycling industrial parks.
Chimorel’s mission is to support individuals and organizations in solving problems and achieving goals, as well as, to enhance each nation’s viability, one life at a time. This rather ambitious mission will create many adventures, which you are invited to become part of. There is both a nonprofit and a for profit side to our activities. The for profit side is designed to support the nonprofit and to protect the nonprofit from UBIT.
Below we offer a glimpse into projects we have been involved in, as well as, lessons learned. We have acquired a few more properties than those shown and we have not acquired many more properties than those shown.
The Chimorel Sanctuary
Chimorel acquired 10+ acres in Delaware, OH, in 2021. Significant renovation is underway. A four phase development program is planned. We anticipate an AirB&B, Wedding Venue, Birthday Parties & other Events; farming activities like vertical hydroponics, aquaponics, vermicomposting, greenhouses and more. Program activities planned include health and wellness, a labyrinth, meditation walks, a variety of adventure activities, recycling, fund raising and other events.
You come to the Chimorel Sanctuary to find peace, inspiration and empowerment imbued with a sense of adventure. While you are here you are encouraged to make decisions that can enhance your life and change the world.
Lessons Learned: When you acquire property there frequently is a lot of renovation to do. But you already knew that didn’t you. You are looking at a picture of the Chimorel Sanctuary.
32 Units at North 4th & Eighth
In 2007 we began to renovate 32 units on the corner of N 4th St & 8th Ave in Columbus, OH, under a management contract. To say the least, this area was a very tough neighborhood. We participated in Stop the Killing rallies. We were in frequent communication with the police from this neighborhood. This effort was our first re-entry into property renovation in some time.
We provided transitional housing for individuals. We helped ex-offenders, homeless individuals with some source of income and others. We provided work experience, job search and housing. If someone had no job, they could earn a place to stay by working 75 hours each month through our Work for Rent program.
They were expected to earn at least their first month’s rent before moving in. A waiting list was in place for motivated individuals seeking work and a place to live. They participated in our tenant’s council, making decisions about sanitation, security, building the community, helping other participants find jobs and taking steps to change lives. They signed a comprehensive Work for Rent lease and could be locked out if they didn’t actually earn their keep.
The seller did not keep his agreement. He could not get an obstinate partner to agree to anything. When he stopped paying the mortgage, the property was managed by a receiver who refused to make a plumbing repair in the middle of winter. Long story short, the property became a vacant lot. The first picture is similar to the original property. The second set of pictures is what eventually happened to the vacant lot.
Lessons learned: Understand who really owns the property you acquire. Get the investments you need before you step in.
Picture a vacant lot, then dream a little.
The pictures below show the units actually built on the vacant lot.
12 Units on Bryden Rd
In 1973 we acquired 12 units on Bryden Rd in which we established an “accredited institution” for pre-delinquent youth. This program was established through an $80,000 LEAA grant. It served four youth placed by Franklin County court. It had the potential to serve 48+ youth who would have been placed by the Department of Youth Services; however, after being assured we would receive youth, we were then denied youth because there was already a “group home” serving about 12 youth on Bryden Rd. This property came with a significant donation from the owner’s, a group of dentists. After running our program for two years, the property was sold at a profit to an investor who actually put one of our youth to work rehabbing the property.
Lessons learned: Get commitments in writing. Acquire property where the conflicts don’t get in the way of the program. Make a profit on property you acquire.
The top picture shows two of the three four unit buildings of the actual property. The bottom picture shows the third four unit building of the actual property.
4 Units on Bryden Rd
In 1977 we acquired an old mansion on Bryden Rd for $12,000. This property had been converted into four units. After acquisition we achieved full rental of all four units and sold the property for $18,000 on a land contract. The new owner did not manage the property well, the tenants left and the property deteriorated. We took the property back and got a court judgment for an additional $7000 in damage to the property. The judgment was collected by seizing a plot of land near Lancaster owned by the purchaser. After a divorce to his first wife, Warren moved in, partially renovated the property and resold it for $25,000 again on a land contract and collected monthly payment for many years. The new purchaser finished renovation. The Zillow value on the property currently is $290,000. This is the actual property.
Lessons learned: Solve the problems and make a profit. Property can appreciate significantly.
2 Doubles Near Ohio Avenue
She was 85 and in extremely poor health. Her family was desperate. We bought two vacant and vandalized doubles for $5000 and paid her approximately $63/mo. We cleaned up and mowed the lawn, screened the windows, cleaned out the debris and did some minor repairs. We sold the property once on land contract for $12,000. This buyer never got serious and we took the property back. We sold the property a second time to an investor for $7000. The property was later resold to a neighborhood development program for $25,000, which rehabbed the property.
Lessons learned: You can do good and do well at the same time. Bigger profits are better than small profits, but a time consuming property sells for what it can get at the time.
Anticipated Investments
We are currently looking for Accredited Investors and property to acquire in order to implement several programs: our Warehouse Auction program, Transitional Housing program, I Got a Job program, Work for Rent program, Rent to Own and similar programs.
These programs will seek large and small warehouses, multi-family housing, apartment and condominium complexes, individual homes and certain strategic businesses to provide housing, work experience, training, employment and fund raising opportunities.
Future, investments might also target plastic reclaim plants, recycling centers, industrial parks including a variety of material recycling processes, greenhouses, food processing, agricultural and related ventures. These efforts are anticipated for the long term horizon.
We anticipate registering certain security offerings and providing investment opportunities to the general public in the future. At this point we will only talk to accredited investors about investing in our unregistered investment opportunities.
We seek to develop relationships with Realtors. Warren has been and may again be a Commercial General Contractor and a real estate agent.
Real Lessons Learned:
Investigate each property carefully. There are always potential problems. Deal with as many problems as possible before getting involved. When problems come up after you are involved, solve them and create opportunities as you go. Yes, make a profit, but also do good.
During the time of some of the property acquisitions described above, Warren had a troubled marriage which kept him from turning lemons into lemonade. The lesson here is solve your personal problems before taking on big projects.
We have evaluated hundreds of properties. We currently have a database of over 200 potential acquisitions and receive potential properties to evaluate periodically. Because our current focus is on the Chimorel Sanctuary, we are not presently evaluating new acquisitions; however, we anticipate developing an investor pool and will begin to evaluate and acquire more property as time allows in the future.
Below we show just a few properties we have evaluated, which we did not pursue. We provide a brief evaluation and provide the reasons why we did not acquire the property.
Equestrian Farm
Cheryl called saying she was exploring this property for her Ranch. I called my realtor and we ‘explored” this beautiful horse farm. I put together three proposals, any one of which would have made this acquisition workable. The seller’s realtor wanted a straight cash deal and eventually sold the property for approximately $750,000. One of our proposals would have given the owners as much as $1,850,000 and would have included rent with requirement to purchase and renting the existing horse barn for a period to build a down payment. A second proposal would have involved a donation of the property and a Special Project which could have generated a little more than $1,850,000 for the owners.
The primary lesson learned on this property was that if the realtor or the owner is not flexible, walk away. Warren spent quite a bit of unproductive time on this property.
Frebis Avenue
On paper this property looked like a cash flow bonanza. Digging into the rather sketchy financials, however, revealed that the cash flow was shaky at best. This owner was flexible, but wanted a premium for his flexibility that could not be supported by a stable realistic rent. The property was in a high crime area, had two recent fires and looked trashy from both the outside and inside. We made an offer based on what the existing rents (for more than six months) could support and walked away. The difference between $400,000 and $650,000 was not sustainable.
Livingston Shopping Mall
This shopping mall could have been acquired for approximately $1,200,000. On a square foot basis it was a very good deal. It would have taken six months, perhaps more than one year, to complete the renovation and build our recycling program to the place where this property would become sustainable. The realtor was flexible, but the owner was not. We did not make an offer.
