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. 

[Michael Smythies]

Here are a few creative ideas perhaps worth considering: 

Exclusive Wedding Venue:

- Transform the property into an exclusive wedding venue, offering picturesque waterfront ceremonies and receptions.

- Develop different wedding packages, including catering, decor, and coordination services.

- Market the venue to engaged couples through wedding expos, social media, and partnerships with local bridal vendors.

Corporate and Private Events:

- Diversify income streams by hosting corporate retreats, private parties, and other events.

- Market the property as a versatile event space for conferences, team-building activities, and family gatherings.

Accommodation and Honeymoon Packages:

- If the property is large enough, consider building or renovating accommodations on-site.

- Offer honeymoon suites and guest rooms for the bridal party or guests attending the wedding.

- Create all-inclusive wedding and honeymoon packages to attract couples seeking a seamless experience.

Just a few interesting ideas to explore! 

[Don Konipol]

Quote from @Michael Smythies:

Here are a few creative ideas perhaps worth considering: 

Exclusive Wedding Venue:

- Transform the property into an exclusive wedding venue, offering picturesque waterfront ceremonies and receptions.

- Develop different wedding packages, including catering, decor, and coordination services.

- Market the venue to engaged couples through wedding expos, social media, and partnerships with local bridal vendors.

Corporate and Private Events:

- Diversify income streams by hosting corporate retreats, private parties, and other events.

- Market the property as a versatile event space for conferences, team-building activities, and family gatherings.

Accommodation and Honeymoon Packages:

- If the property is large enough, consider building or renovating accommodations on-site.

- Offer honeymoon suites and guest rooms for the bridal party or guests attending the wedding.

- Create all-inclusive wedding and honeymoon packages to attract couples seeking a seamless experience.

Just a few interesting ideas to explore! 

All the above, as well as idea listed in the next post, are GREAT ideas, and could potentially be very profitable, albeit with probable mid to high risk.  However, they are BUSINESSES with a real estate aspect, not real estate investments.  So, they involve MANAGING a business, which is an ability many people, including myself, are not so great at.  I had all the high level graduate school business education to enable me to have all the tools to manage a business, and yet I came to realize I SUCK at it!  But what I am good at is real estate INVESTING and hence changed my career years ago, like 1979.  I believe you’ve got to make a choice; either you run a BUSINESS and if it’s a startup expect to spend 50 hours per week or more at it, or you INVEST in real estate, maybe growing your portfolio to the point where you employ property managers, and concentrate on the acquisition, disposition, analysis, negotiation, financing. tax minimization, asset protection, structure, operation efficiency, expense reduction, revenue enhancement, and strategy of real estate properties.  Two completely different skill sets, time constraints, and knowledge base. But here’s the real question.  You got into real estate so you could be “independent” and not have the constraints of a business “job”. So why buy a piece of property that to make it work you need to start a business and have a “job” running said business?  

If you want “business” income and still have it more real estate investing rather than business management you can either syndicate real estate deals or run a private real estate investment fund.  

Btw, there is absolutely nothing wrong with starting, growing, and managing a real estate business, or any type business; that’s how billionaires are made.  However, it’s not real estate INVESTING, and I believe many may be confused about the difference 

[Julien Jeannot]

I would agree with above post. Sounds like a pitch for a business rather then a passive real estate play.

Maybe an air B&B play if you've got land to add units, but high risk.