My wife and I are wanting to buy a property that could be a wedding venue. I’m curious what type of financing would be best for this activity.
It would likely be rural 2+ acres with a barn.
There is one that came on the market in our area for 1.3 but that includes furnishings, website, social media accounts etc. This one seems like a business purchase not just a real estate transaction. One major benefit is that it already has 50+ bookings through 2022
The other alternative would be buying a property and building/renovating.
What type of LTV can I expect on something like this?
Another option outside of traditional commercial loans would be to look into the SBA loans for purchasing an existing business.
@Derek Meyer Mason is right. If you can't get a traditional commercial loan, SBA would be a good choice. You might even be able to do a USDA B&I loan, depending on the address of the property and whether it is located in an eligible area. LTV can be as high as 85-90% for those types of loans. IMHO it is always easier to finance the purchase of an existing business since it has a historical financial track record, which will eliminate a lot of the guesswork for starting up a business from scratch. There is a lot less risk from a lender's perspective for an existing business compared to a startup.