All Forum Posts by: Dennis Adams

6%.  Though they have forced us up to 8% now in order to have secured the extensions.

Shane,

Thanks for the good advice.  I've already tapped out a couple of those angles, but I'll make sure I'm not missing anything and look into a couple others right away.

Bob,

The current note holder is the group that sold me the building a couple years ago.  They wouldn't have any idea about how to sell the note.  I guess I'll go read up on that a bit now too...  :)

Hi Jilliene,

The primary note is $700k. That is the most important nut to crack. Additionally, I have about $300k in improvement loans that went into the property, plus another $100k or so of my cash. So I guess I am "looking for" a $1.1M loan, but I need at least $700k to remove the immediate threat. Based on a $1.7M value, I guess that's 41% - 65% LTV.

I've looked at a couple crowd funding sites to see if that might work, but haven't been encouraged..  I guess I'll jump on the crowd funding forum here and see what I can learn.  Thanks for the suggestion.

I've done several in that age range.  Since I'm a finance guy by training, the first thing I wonder about your situation is the cost of your time and money.  If you have borrowed money at a high interest rate (perhaps with a balloon payoff in the not-too-distant future), you need to attack this thing VERY differently than if you are buying it with a cheap conventional loan and you'll be living in it.

In either case, be disciplined about your scope.  Old houses can suck you dry if you fix everything that occurs to you.

Business is starting to boom at Alberta Abbey in NE Portland.  We're signing long-term agreements with established performing arts groups.  Our renovations recently concluded with the completion of our new bridal suite.  Our full-time tenants in the building are enthusiastic to be part of a vision that has become reality...

But our efforts to refinance have come up empty.  We've gotten close with lenders of all types, but our unique business model and short operating history have always derailed us in the end.  We are on our second extension with the current note holder and they just want their money.

There's no more time to begin yet another long loan process.  We fear any hint of foreclosure or bankruptcy, believing that either one would destroy our bookings and reputation.  It's frustrating because we have never missed a payment, have about $1.7M in asset value, have about $7k per month in free cash flow, and everything is on the rise.

I would like to hear from anyone who has advice about how to get out of this tight spot.