All Forum Posts by: Richard White

Quote from @Mitch Davidson:

@Richard White I'll send you contact info for two local PM lenders that might be a good fit. Welcome to Asheville. And thanks for NOT canceling your plans due to the disaster we've suffered lately. We need folks like you more than ever. 

 Thanks so much, Mitch!

Hello, all. My wife and I have owned and managed STR condos in Carolina Beach and Wilmington, NC, for several years.
We are looking to purchase a restaurant in north Asheville. The sellers were under agreement with another buyer who pulled out when Helene came through (even though the restaurant suffered no damage), so they are looking to close quickly (end of year) and retire.

Does anyone know a bridge lender for a turnkey restaurant asset purchase? The restaurant currently does over $1 million in sales annually, and they’re only open 5 days a week for dinner. The Seller’s earnings are around $300,000 for the past 3 years. The asking price is $375,000, which includes all inventory and FFE. My wife and I can cover $75,000 or so, but we would need a loan for the rest until we can get a SBA 7a after closing. There is no real estate involved; they are on a lease.

My bank is currently looking at how much they can give us for a cash out refi of our rental condos, but we are trying to investigate all options.

Thanks for any advice.

Quote from @Julio Gonzalez:

Glad to have you as a part of this awesome community, Richard! 

Thanks, Julio!

Quote from @Robin Simon:

Quote from @Richard White:

Hello! My wife and I live in Garner. We have owned STRs in the Carolina Beach and Wilmington region for several years, but now we are looking for new opportunities and to expand our portfolio, either in STR, motels, RV parks, or some other area of hospitality. We are looking to connect with investors with similar interests or anyone looking to partner on deals. Looking forward to connecting with the BP community!

Welcome! I would just say that recently in my experience diversifying out from STR into motels/boutique hospitality has been high risk and set some people off path - it can be a very lucrative and good move - however, if you are having a lot of Success with traditional STR - it seems like a lot of people are looking back and saying they wished they stuck with that and expanded with what was already working!

Thanks, Robin, for the insight. It does make sense in some respects. The motel we offered on was utilizing Airbnb solely for rooms, and I think there's good opportunity to utilize STR OTAs and hotel booking sites to bring in customers. I think it works best for small properties, less than 20 rooms, but I've heard some success stories with larger properties. Definitely something that still interests me!

Quote from @River Sava:

Hi Richard, welcome to BP!

I am not too far away in Charlotte. Happy to chat abot STRs with you especially if you are going to stay along the coastline. 

Thank you! Yes, I would love to connect and talk about your experiences. Staying in the Wilmington area makes the most sense, as we really know that market, but I also have a soft spot for the western part of NC! 

Hello! My wife and I live in Garner. We have owned STRs in the Carolina Beach and Wilmington region for several years, but now we are looking for new opportunities and to expand our portfolio, either in STR, motels, RV parks, or some other area of hospitality. We are looking to connect with investors with similar interests or anyone looking to partner on deals. Looking forward to connecting with the BP community!

Hello, all. My wife and I have owned 4 STR's since 2017, and downsized to 2 in 2021. My W2 job was going well for the past few years, but recently have been large gaps in steady work. I'm looking to branch out our investing portfolio while also being able to move away from the W2 income, but I'm not sure if we should stick to STRs, or move into LTRs or other. We have access to personal capital through equity and recently offered on a boutique motel that we were going to manage initially, but couldn't come to agreement with the sellers.

I'm not looking for "get rich quick", but rather pursuing an area to allow livable income now while investing for the future. I've looked into motels, RV parks, mobile home investing, etc. I have no experience with flips or BRRRs and don't want to use all my equity for low cash flow right now either. Any advice would be more than welcomed as to areas to investigate.

Thanks so much for any thoughts and looking forward to learning from the BP community!

Investment Info:

Condo buy & hold investment.

Purchase price: $155,000
Cash invested: $40,000

Our Cabana condo in Carolina Beach operates as a STR through Airbnb, VRBO, Booking and Google.

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

I purchased my primary residence in Carolina Beach in 2009 and rented back to the sellers for the first year. Also rented the ADU for a year and then started with both on Airbnb in 2016. We were very successful with these rentals and decided to expand in 2017.

How did you find this deal and how did you negotiate it?

We used a good friend who was a local agent to help find and analyze the properties.

How did you finance this deal?

Commercial loan through a local bank with 20% down.

How did you add value to the deal?

We updated the unit cosmetically through paint and furnishings, as well as consolidated the kitchen and added more living room space. We also provide beach rentals in the summer for all of our guests.

What was the outcome?

We have been one of the top rated Airbnbs on our island since we listed in 2018 and have grown that success to include co-hosting for other buyers.