All Forum Posts by: Joshua Mccusker

Justin,  

Thanks for your response.  The seller has already came down in price a good amount to what I consider fair. I have enough money for the down payment and reserves, but not enough for renovations right away.  That is why I am looking for a little capital.  The numbers work fine as is, but some updates would definitely increase income.  I have never worked with an investment partner before on any of my deals, so looking for input on starting points for that.

I am looking to purchase a 19 room motel, and we are looking to raise an additional 100K for renovations.  What would be the best way to do so? Below are some details on the purchase.

- Purchase price = $900K

-additional $ needed for renovations $100K

-Current owners Net Income 150K a year

-My forecast Net Income 250K after renovations

Since our all in would be one million dollars, if we raised 100K would that investor expect 10% equity, also would they expect 10% of net income each year as well? Should I take a management fee from there equity, since I am doing all the work?  I know you can structure a deal how ever you want, but any suggestions on a good starting point for a deal, so we can start propositioning people we know?