Multi Million Dollar Mansion on the river, in a Wedding venue town

[Kobe McDaniel]

Hello BP Community,

I’ve got a multi million dollar house on the river listed in my investing area. We are a huge farming and now wedding venue town. What would you do with something like this? If bought at list price, the payment on it would be about 25k a month. Let’s hear it! Thanks

[Don Konipol]

Quote from @Kobe McDaniel:

Hello BP Community,

I’ve got a multi million dollar house on the river listed in my investing area. We are a huge farming and now wedding venue town. What would you do with something like this? If bought at list price, the payment on it would be about 25k a month. Let’s hear it! Thanks

Unless you can find a wedding and event business wanting to lease the property on a triple net basis for significantly more than $25K monthly, you would need to operate the event business yourself. Which means you have bought a business and all that entails, with real estate just the “side show”.  And this is much more of a business than a motel, or MHP, of which you could always find a manager of management co to handle day to day.  People often get all excited about these properties; but the truth is that while they may have a greater return than multi family or shopping centers, etc., they are more specialized, with fewer competent administrators available, entail higher risks of vacancy and loss.  Bottom line is it would take a thorough analysis to ascertain whether there is a probably of excess profit enough to offset the additional risk.  
I personally feel that any real estate investment containing the probability of having to manage a business for the property ownership to be a success has much “hidden” risk and involvement.  These include obsolete nursing homes, marinas, small theme parks, coal mines, small airports, and of course event centers.