Your help wanted for ways to fund residential hotel project

[Olivia C.]

I’m exploring different ways my project could be funded. Below is a draft of some rough ideas.

Thank you for your input and comments!

I’m exploring different ways my project could be funded. Below is a draft of some rough ideas. I’m not looking to maximize profits. This is a way to help seniors while I make some profit.

Thank you for your input and comments!

PROJECT

Buy existing hotel and renovate to residential hotel for elderly poor. Property owners lease to non-profit which operates it. Good, safe, location. Owner later sells property to non-profit. Not Section 8 housing.

FUNDING IDEAS

I fund using Infinite Banking method.

I or my corp fund down payment and get loan for rest.

Tax and govt fee reductions are solicited.

Property is owned by investors and leased to a non-profit which runs it.

Can annual dividend be paid? Any dividend paid out to be considered part of 6%-10% ROI. Project could be funded entirely from investors.

Get investors to fund corporation for 5 years at 6%. Interest payments monthly or quarterly. At 5 year end, corporation gets loan and investors are repaid. Investors are invited to become part owners of corp with no voting rights.

I take on investors to fund renovation and start up. I pay them back in 2 - 2.5 years. This reduces my initial start up cash layout and encourages others to build similar properties.

Bond used for start up. Investors buy bonds, I pay back at set time with interest.

I fund using Infinite Banking.

I fund using a combination of Infinite Banking and commercial banking if I can’t afford sufficient life ins plan to cover.

Apply for grant(s)

SBA loan

Do credit unions issue business loans of this type?

Lease to own agreement: term possibilities

Non-profit buys me out over 10 years at 6% with monthly or quarterly payments.

My corp funds project and own property for first 1-5 years. Then non-profit buys corp out over 10 years in a lease-to-own agreement.

Non-profit could pay balance off early after x years with no prepayment penalty.

Max amt of prepayment to principal has annual limit until proper anniversary reached.

# of years & interest rate can change.

Note: Commercial construction loan rates: 5.25% for 15 year fixed as of Feb 2017.

FUNDING METHODS NOT TO BE USED

>Community Development District Plans (CDD)

Building to be in blight area so new business/building to help lift area from blight. Not safe.

>Tax Increment Financing Plan (TIF)

Assumes new bldg will pay higher taxes. Hopefully not in our case!

>Commercial real estate syndication plan

Involves building / renovating then selling the property.