funding for a resort

[Jeff Lipple]

Hi Everyone,

I'm purchasing a resort.  Net income is about $85,000 and purchase price is around $850,000.  I have 80% of the financing covered by a bank.  The bank does not want me to do a PPM.  I would like to borrow around $200,000 from an investor as a second position mortgage for 3 to 5 years plus and at sometime in the next few years do a cash out refi with the bank to pay them off.  Has anyone done something like this?  Is there any demand for loaning money in second position or is it seen as too risky and almost unsecured, especially since a resort is much more unique than a standard apartment?  I'm trying to determine if this is something I can likely accomplish in the next couple weeks or if I really just need to bring on a partner to close the deal.  Thanks for any feedback!

[Juan Vargas]

Investors would probably shy away as they won't have any type of "collateral" with this type of lending. It would probably have to be based off a deep existing relationship and trust with you. 

I think your best bet is to bring in a partner as this will accomplish more of an alignment of interest among all parties.