ThuderingWind
Well-known member
- Joined
- Dec 30, 2012
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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.
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.