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?
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
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
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.
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.