Hello BP,

I have an opportunity for a unique property that doesn't really fit into traditional lending portfolios and I could really use some advice for developing a creative acquisition strategy. 

Background: In 2011, I had the thought to open a DIY auto garage after realizing my personal automotive efforts were being hindered by a lack of space, tools/equipment, and personal know-how. As a District Manager for Hertz Rent-a-Car, it was easy for me to understand the renting of time. This process eventually led me to "car condos" or higher end storage units for higher end or classic vehicles. I found the land in the areas convenient to the desired target market to be expensive and had to look at land outside of those areas. While doing so, I realized in order to maintain the desire to store their vehicles in a unit outside of a 5 mile radius, I would have to provide my customers with a compelling reason to visit the site. Since these folks are car people, it made sense to offer some sort of driving experience. 

I concluded that the best way to do this was to combine the DIY garage and social club concept with the car condos and a driving experience at a track. Since I already had some industry contacts after two years of research studying tracks, country clubs, and even equestrian facilities (I have a list of 4,147 private country clubs; 169 private equestrian communities; 866 ski centers & resorts and 23 private automotive clubs that include at least one road course), I found a underperforming road course and go-kart track not far from my original intended location (within a 2 hr drive). This was optimal as I found I could purchase the existing facility, upgrade it, and introduce new revenue streams for less than 1/3 the cost of building a new facility which would require a huge amount of investor capital. 

After another year of attempting to raise money, negotiating with the owners, speaking with engineers, architects, industry specific professionals, and revising my plans, I feel as if the purchase is within touching distance - yet still so far away and could use some assistance from more experienced investors.

Basics: The track needs some updating as do the grounds and facilities. However, the track and facilities appraised in 2013 ~$6M. It is currently cash flowing and profitable yet marginally. Using the P&L from 2014, I developed projections simply by adjusting current pricing (marginally) and cutting excessive and wasteful spending. My net projections for Yrs 1-5 are : $81k, 258k, 725k, 778k, and $1.13M, respectively, including a balloon payment in Yr.5. These do not include any additional revenue from the sale of car condos on-site or overnight accommodations nor the two major event organizers (Formula E & Formula Drift) who have welcomed discussions on having an event at the facility should I manage to wrap things up.

My plan and the area I need help: I believe the facility could be purchased for $2.75M (which is roughly 13x the 2014 EBITDA). I suggested to the ownership seller financing and asked if some of the existing ownership would be interested in rolling over a minimum of $500k for improvements and marketing. These would be considered with the right deal structure. I would also need to source another ~$500k to complete the first phase of renovations and initiate the marketing plan.

In summary, I need to develop a plan that secures the facility and allows for sufficient operating capital to meet the sales targets either through a creative seller financing package, an asset backed loan, or by some stroke of luck finding a partner who sees the vision. 

I'd love to hear the thoughts of the greater BP community and welcome feedback, advice, and constructive criticism openly.

Thanks, Ryan