All Forum Posts by: Brad Hughes

Thank you!   The building may not appraise for what it’s worth because the owner only paid himself 60k per year in rent, instead of closer to $300k per year to help appropriately appraise the value (since there are no similar comps in the area).  

Many banks I talked to can only get us to $3.2mm (except for one that will do the whole $5mm, but won’t give me the appraisal until after close).   Grrr.    

I’ve heard that if we try both the 504 & 7a maybe we can get it done at $5mm.  The business has nearly $1mm in gross revenue ($600k net), so the cash flow is there.   I just need a bank that can help me do the deal and provide me with the appraisal upon completion instead of holding it hostage until closing so that I may use it for last ditch negotiations with the seller if the price is still too high.  

Just not sure where to turn and need to go into high gear underwriting to close before wedding season is over!   Open to suggestions….    

Hi!   I'm looking to speak with a Bank Specializing in BOTH the 504 *AND* 7a loans to acquire a $5mm Luxury Wedding Venue on 30 acres with a vineyard.   All the banks I've talked with only specialize in one or the other and, due to an unusual circumstance, this deal may need a combination of the two loans to get it done.   Can someone point me in the right direction?   Thank you!   -B

Sorry Steph, Kindness begets kindness, sarcasm begets sarcasm.   Enjoy!   -B

I got it the day after I asked the question.   Timing is everything, right Chris?  

Thank you Doug for your kind and helpful reply, unlike Stephanie Sarcasm and other naysayers.   I must not be completely insane, because I currently have have a 30 year, Prime +0 deal with minimal conditions (so far) on the table, so there’s that, mockers.  And I will be splitting the 10% down payment with the seller 50/50 (5 year note at 7%), so I do have a bit of skin in the deal, which is good.  I guess the big question I have is regarding the deposits (liabilities).   Initially the seller didn’t want to include the deposits for unexecuted weddings in the deal, but I want the $500k in cash at closing for working capital/reserves/investment.   Some are saying I should just ask the seller to lower the price $500k and get a line of credit for $500k (which the lender has offered) in lieu of the $500k at closing.   Any thoughts as to what is best?    Thank you!       -Brad.  

My wife and I are first in line to acquire a profitable wedding venue in Illinois. We need creative/quick financing on a $5mm property. We have an NDA, LOI, and a contract, so no questions about the property please.

We have a successful wedding officiant service business with 500k in total yearly revenue (265k NET) AND an 800 credit score.   We are expanding our business into a wedding venue business that has 900k in total yearly revenue (581k NET with addbacks).   

We want our monthly mortgage payment to stay around $30k.  The seller is willing to finance between $500k-$1mm and/or provide $500k cash at closing in the form of deposits on unexecuted weddings for working capital.   

We need a lender who will release the RE/business appraisal upon completion (not hold it until closing) so that we may use it for any further negotiations.  Looking for a 30 year loan at Prime +0, with 10% down (to include seller financing).  

There’s a good amount of cash flow here, so we need a lender who can close quickly with minimal conditions, fees, prepayment penalties, etc.   We need to move on this ASAP.   

Thank you for any advice and referrals you can provide!   -Brad