3 year Financial Partner for 2M and 3M Bed and Breakfasts

3 year Financial Partner for 2M and 3M Bed and Breakfasts

Member since 2018 · 50 posts · 39 votes

I own 100 buildings, most of which are 1-4 units. Many of them are encumbered by a low ltv loan to a friend who helped me get started. I've agreed not to pay him back for 5 years.

I also own a few bed and breakfasts and million dollar STRs.

I am looking at acquiring two bed and breakfasts whose prior owners did not keep good records or shut down because of Covid. 2M and 3M sale prices. I know I can acquire them, get them running well, and SBA 504 refinance them in 3 years. Banks are saying no to me on initial acquisition. I am looking to find a low doc capital source to acquire them with a three balloon. I can bring about 100k for each deal to the table and some second positions on my other properties.

How would I go about finding someone to partner on these?

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Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes
2y

A Cross Collateralization loan would be the way to get this done, since you have a lot of equity, you may not even need to bring any cash to the table on this

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  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    Have your terms together on what type of return youre looking to get.....I would pitch this at a REIA meetup and funds....

  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    I can help you find them possibly

  • Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes
    2y

    A Cross Collateralization loan would be the way to get this done, since you have a lot of equity, you may not even need to bring any cash to the table on this

  • Cliff BennerBusiness Member
    Accountant · Denver, CO · Member since 2020 · 392 posts · 183 votes
    2y

    could you do a lease option to purchase it and do all the work, then "refinance" it with the purchase in a few years? This is what I was thinking about doing to use little upfront as a down payment. 

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  • Jared RineBusiness Member
    Lender · Sacramento, CA · Member since 2009 · 1k+ posts · 277 votes
    2y

    @John C...where are your properties?  Depending on location or even not, it sounds easiest to find a lender who would possibly cross/wrap enough of your other properties to get what equity is necessary to take down the new B&B purchases.  I do this stuff all day in CA; just didn't know where you're purchasing and where your properties are. 

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