Moving Forward

3 replies [Last post]
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Joined:
12/30/2012

We have found partial financing assistance via a fraternity brother who works for a community development bank.

Two issues have arisen out of this.

1) Bank only lends up to the amount the local government appraises the property (not the real estate value or business value) because this all tax related. So for the inn that meets all our needs except income to value, this means the property is appraised at $350K. 1st year would be a lose due to start up costs, but after that, would make profit using the $350K and 10 year running average occupancy and income.

2) Property owner and realtor have failed to respond to questions from us and the bank.

So we are off to find another property.  Another state we are looking at use the real estate "value" and any recent sales price to help calculate the property taxes. Our banker says he can help us get funds out of state/transfer lending package to another CDB.

Madeleine's picture
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Joined:
09/29/2011

We had to walk away from a B&B that wouldn't tell us anything. 2 of them. One handed us photocopied pages of their check book and told us to figure it out for ourselves. Another was closed for the season and left without giving the broker the stats. They kept telling the broker it was all in the house and they were 1200 miles away and if someone wanted to buy the place, come back in the spring. (OTOH, the broker kept telling US that the paperwork was 'on its way'. She did that for 3 weeks until she finally had to tell the truth.)

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Madeleine's picture
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Joined:
09/29/2011

Glad you found the money! Appraisals can be way off so if it sounds too low or too high check around some more. All of that info is in the public domain.

Joey Camb's picture
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Joined:
04/02/2010

I have to say it - its a buyers market - get your finance lined up and bb's will be stacking up to sell to you - so many sellers are just sick to death of time wasters.

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