All Forum Posts by: 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.

Tenants do not read newsletters.  

If you have multiple non-married adults living in a property (like your 4 students), hire a twice-monthly housecleaner for the shared public rooms and add that expense to the rent.

Do not offer this option: just do it.  Your property will be better cared-for and the cleaner can report any serious problems.

Online notarization is valid in a couple of states.  Most states do not as the risk for fraud is very high.  It will be up to the person who decides to accept or reject the notarization.  That person has rules to follow.  In real estate, that person is often the Recorder at a government office like the county courthouse.

I would contact the Recorder of the county in which the property is located and explain your situation.  Ask her/him what is acceptable.

If you are out of the US, you can use a local notary who understands international notary law.  You get the document notarized locally then obtain government certificate(s) for it to be used in the US.  

If you are in the US, you might be able to pay a notary to drive to you.  These are known as mobile notaries.  Travel fee usually depends on distance and travel time but the price could be cheaper than the money you are losing due to the deal being delayed.  Google notary rotary to find an online directory.  The more experienced notaries there are used to driving distances to handle odd situations.

It might be a good idea to have the title/escrow company draw up a single use Power of Attorney for this transaction.  You get the PoA notarized then your agent can sign the rest of the documents on your behalf.

Good luck!

You can learn about the industry by reading a free newsletter delivered via email.

Just google senior housing news and you'll find it.

You'll see who advises the developers, operators, investors, etc.  I would start by contacting those companies.

Search on Google using the words Nelson Nash and Infinite Banking.  Do the same on YouTube.

You'll learn lots.  Look for examples of how the numbers work on YouTube.  I was very impressed.

I also liked the book Bank on Yourself.

This strategy of using whole life insurance with specific riders is a powerful tool.  And like all powerful tools, it must be used carefully.

I suggest having the lawn service be considered similar to a utility and have the tenant pay for it.

Tenants don't want to mow lawns.  In my area, there are more lawns than workers to mow them so it's a scramble every spring to find a lawn service for the season.  

If the landlord has a mower / lawn service on tap and the tenant pays for the service, then the yard is not neglected.

I echo Wayne: no. 

I would consult a law firm with specialists in tax and real estate and create a strategy.  There are structures which could be used to both your and your parent's advantage in both taxes and long term rewards.

I am considering buying hotels and renovating to rooms (with mini-frige and microwaves) that I rent as hotel rooms on a monthly basis to low income women.

My thought is to provide this type of housing but avoid the nightmare of dealing with evictions and putting up with bad tenant behaviour until I can evict.

Since I'm targeting low income women, I"m not looking for terrific returns but I need to stay afloat and make a bit.

If you care to post comments, I would sincerely appreciate it!