Wedding Venue Financing

10 Replies

Good afternoon BiggerPockets,

I have found a property in North Carolina that I am wanting to turn into a wedding venue. I am having trouble trying to find a way to finance the property and renovations wrapping those into one mortgage. Hopefully someone here can help me with some way of figuring out how to finance this property. 

Thanks for your help

Darius

Are you going to operate it?  If so you should be able to talk to a lender that has experience with construction-to-permanent financing.  Specifically those that deal with SBA would probably be best.  If you are staying in Indiana and going to operate remotely this could get difficult.

There are many ways you can make this deal.  You can ask for a construction loan, a SBA loan, or you can buy the property normal home financing and then get a refi for getting the construction work. The possibilities are pretty vast. 

I would probably still do construction financing for the initial phase on the whole property and the reason being is that it is interest only for that time.  This will help with your cash flow until you put the property into operation.  Once you start generating revenue you can refinance into term debt and better afford the higher payment of principal & interest each month.

On a different note, the property sounds like it serves a couple of purposes (home and business) you may be able to mix and match some financing options at various stages to achieve the best result.  This would depend on the structure of the property itself but you should talk to a couple of local bankers to get their opinions.

Originally posted by @Darius Burke :

Good afternoon BiggerPockets,

I have found a property in North Carolina that I am wanting to turn into a wedding venue. I am having trouble trying to find a way to finance the property and renovations wrapping those into one mortgage. Hopefully someone here can help me with some way of figuring out how to finance this property. 

Thanks for your help

Darius

 Darius

After reading some of the threads and getting more information, here's where I think you're having issues.

  • You are living in Indiana and wanting to start a business in North Carolina.
  • The property will be owner occupied
  • It's your wife's business
  • Property needs renovation to retrofit it to your new business

Moving a long distance to start a new business is not something banks like.  Your wife will have to have some strong financials to justify the move.

Owner occupied precludes the likely funding source, SBA

The property needs renovation, so you'll need to finance that as well which pigeon holes the loan further.

Here's what I think would be a solution:

If you can swing the move to North Carolina and income qualify, get an FHA 203K loan to purchase the property and do the renovations. It would have to be owner occupied, but that should not be a problem. The issue I see is income during the transition period to NC.

Stephanie