Seeking Advice on an Over-My-Head Real Estate Opportunity (Boutique Hotel) in Souther

[Bella Gonzalez]

Hello! I've found myself in a unique situation regarding a real estate opportunity in Southern Utah, and I'm looking for some guidance and advice as I'm relatively new to this space and it's a bit overwhelming.

To respect the confidentiality of the deal, I can't disclose specific details, but I'll provide some general information to give you a better idea of where I'm coming from. I've come across a 10-room run-down hotel that's currently in service. The listing price is quite high based on the NOI, and to achieve a reasonable 9% cap rate, the purchase price would need a significant discount of nearly $1 million.

The seller is open to seller financing for half of the purchase price with a 5-year balloon payment. Technically, it could cash flow with a bank loan covering half the price and minimal interest payments to the seller on the seller financed portion, but it's a bit tight. Our post-renovation projections look promising and suggest a great return on investment. Additionally, we have a personal connection with the seller, and the property has been on the market for a while, hinting at potential progress since we first initiated discussions. On top of all this, I'm a designer with big plans for the property's future.
Here's where I could really use some guidance:

1. Finding a Partner: I recognize that I need an experienced partner to help qualify for the loan. How do I go about finding the right partner, while I have networked with some hotel flippers, none are interested in investing in this area of the country.

2. Capital Raising: I need to raise approximately $600k, which is quite daunting since all of our previous deals have been self funded. Any tips or resources for raising the necessary funds?

3. Tackling the Challenge: My husband and I aren't afraid of challenges, but we also understand that this might be a bit over our heads at this point. Do you think we should forge ahead, get a partner, and bet on ourselves for what could be a life-changing venture? Or should we consider other, more manageable opportunities?

4. Passing Off the Deal: Is there a way to potentially pass this deal to someone else if it turns out to be too much for us?

I truly appreciate any insights, advice, and kind words of wisdom you can offer. I'm open to learning and have already gained a lot f education from pursuing this property so far. Thank you in advance!

TL;DR: I have a real estate opportunity in Southern Utah with a unique seller financing offer, but I'm new to this and need advice on finding a partner, raising capital, handling the challenge, or potentially passing the deal to someone else. Any guidance is greatly appreciated!