Madame Proprietor Melanie from Maine

[Melanie Tucker]

You know how some people say that a person walks in the room, their eyes lock, and they immediately know that that's  "the one"?

Well, that never happens with me with romantic partners.  But it DOES happen with real estate! 

From a childhood where my parents moved us every year, fixing up homes and selling for a profit (riding the RE wave of the 70s), I had an early comfort with and trust in real estate.  They named one place "High Hopes Farm".  Trust me, I learned to spot a diamond in the real estate rough. 

So it's no surprise that, in my 57 years, I have bought and sold ski houses, beach houses, and a string of homes - the most recent sold for cash from a facebook post last Thanksgiving Day.   I occasionally sold in the red 😬 but mostly did well.   My Father used to always say to leave your square of the earth better than you found it.  I can honestly say I have done so - and had a ball along the way. 

A couple years ago I took a leap and bought a home on an island in Maine to open as a summer guesthouse. It was supposed to be a fun experiment - live by the sea and play with scones.  It turned into one of the most magical summers of my life.  And I found out that hospitality is my true SuperPower.   

So in December, I made another leap, and signed a contract to purchase a hotel on the island.  It's a grand dame, 100+ years old, 20-some rooms, with a restaurant.

I've got all kinds of plans for the place - A stand-n-shuck oyster bar. Themed dinner nights.  Eucalyptus sheets and pillow menus. Staff who operate by Disney standards.  An artisan shop selling work by local potters and painters. And Island Experiences like Trap to Table, hand-cranked Ice Cream Socials, Expert Talks, Baking with the Innkeeper, Sunrise Breakfast Hikes, Cribbage tournaments, and more.   But most of all, I plan to bring my exquisite brand of hospitality to the hotel to transform it into a flagship worthy of the island's storied history.  

First, though, I gotta buy the damn thing!

I have been turning over rocks like a madwoman. 

I've created a non-equity Destination Club where Members can get a specially designed suite for a week/month each summer for 10 summers, for a one-time fee.  People gushed over the idea and wished me well, but wishes can't be used as downpayment.  So I offered a 25% Founding-Members special, and am reaching out to painting and birding societies who would love the island. Sign ups are slow.

Plan B is condominium-izing the outbuildings (like the owners cottage) and selling that off for cash. These outbuildings are not needed for cashflow and I already have a home on the island, so they're dispensable. This could bring a great little cash infusion.  But banks - especially the SBA - don't like the idea. 

Plan C is a financing-up with the banks, and backing their 50% with an SBA 504 loan of 35%.  But the SBA is slow (4-5 months) - we are supposed to close March 30th but ideally we'd at least close by May 1 so I could be ready for the summer tourists on Memorial Day weekend.  This is not workable on the SBA timeline. And some of their non-negotiable rules are tough to work with too. 

Plan D is strict bank financing which is quicker, but that's a lot more risk for the bank without the SBA loan on board. 

Plan E could be a minor investor.  I am keen on running the place and I imagine a minor investor would be happy to avoid daily housekeeper drama.   A well-balance shared ownership is figureoutable. 

Plan F could include seller financing, private unsecured loans, selling a kidney (just kidding).  

And just this afternoon, a lease to purchase plan was tossed into the ring.  Not sure what that might look like. 

I would surely love people who've been around the real estate block to chime in with ideas, support, inspiration.   What am I not thinking of?   How can I make this deal work?

Unless they're dire, save your warnings please. Because I can see it in my minds' eye.  I just have a hunch that I am supposed to be in that hotel.  And just FYI - last summer when much of the hospitality industry was gasping for air, I was running at 87-92% occupancy at my new guesthouse, with one guest comparing my hospitality to "kintsuji", the Japanese art form of mending broken pottery with gold.   They said that's how my guests felt when they left me... as though they'd been filled with gold. 

So I am like a freight train of HELL YEAH on this project.  And eager to sink my teeth into the hospitality.  

Got ideas?