white pine
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Hello!
We are looking at a 19 acre property with 1100 of lakefront which includes an old inn which has been shuttered since the 1980's as well as an 8 unit motel which was open in 2008. This place is special to us, we stayed there for years, had our honeymoon there, got to the point where we went up to help open it in the spring and we actually tried to buy it from the po in the 90's. At that time I discovered PAII and bought lots of books which I studied, wrote a business plan and ran it past our accountant. We have been involved with historic remodels before, and although I always say never again, we usually do. Older, not much wiser. Although we have discussed price with the current owner, we have not made an offer yet.
The previous owner has passed and the new owner ,who inherited it , has it for sale. He knows us and is willing to work with us on finance. We are cautious. So far we have talked with the county: building inspector, health dept., septic installer, food service, and have had our architect and contractor look at the place. Because it is on the National Register of Historic Places, we also met with the state historic architect and reviewed our proposed remodeling. It appears that with the remodel, we would be eligible for a 30% tax credit. Oddly, instead of being discouraging, all of these people are supportive. The building inspector even offered to come through "off the record" to give us some ideas. Turns out the septic person knew the property well and his mother even baked there back in the day.
Anyway, our accountant suggests that we form an llc to hold the property with another llc with a lease agreement with the holding llc to run the motel. Possibly a third llc for the inn when it becomes available. What ownership organization do you recommend?
We are looking at a 19 acre property with 1100 of lakefront which includes an old inn which has been shuttered since the 1980's as well as an 8 unit motel which was open in 2008. This place is special to us, we stayed there for years, had our honeymoon there, got to the point where we went up to help open it in the spring and we actually tried to buy it from the po in the 90's. At that time I discovered PAII and bought lots of books which I studied, wrote a business plan and ran it past our accountant. We have been involved with historic remodels before, and although I always say never again, we usually do. Older, not much wiser. Although we have discussed price with the current owner, we have not made an offer yet.
The previous owner has passed and the new owner ,who inherited it , has it for sale. He knows us and is willing to work with us on finance. We are cautious. So far we have talked with the county: building inspector, health dept., septic installer, food service, and have had our architect and contractor look at the place. Because it is on the National Register of Historic Places, we also met with the state historic architect and reviewed our proposed remodeling. It appears that with the remodel, we would be eligible for a 30% tax credit. Oddly, instead of being discouraging, all of these people are supportive. The building inspector even offered to come through "off the record" to give us some ideas. Turns out the septic person knew the property well and his mother even baked there back in the day.
Anyway, our accountant suggests that we form an llc to hold the property with another llc with a lease agreement with the holding llc to run the motel. Possibly a third llc for the inn when it becomes available. What ownership organization do you recommend?