1997 Hotel partnership purchase

[Mike Jacobson]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Crookston.

Purchase price: $30,000
Cash invested: $30,000

Bought into a partnership of a 50 room Hotel in Northern MN. 4.76%. In 2008, some partners wanted out. I purchased an additional 15% for $150,000. Now with new ownership group the hotel was paid off in Feb. 2018. Now partnership splits the money that used to go toward P & I. Dividends are paid on any profit beyond that.

What made you interested in investing in this type of deal?

Family member was a hotel developer and after begging for years, we were allowed to get involved in this one.

How did you finance this deal?

Borrowed against the equity in our home.

What was the outcome?

Monthly cash flow now.

Lessons learned? Challenges?

The right partners are important. Different people have different goals at different stages of life.