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    2 Replies Latest reply on Apr 1, 2010 6:36 PM by TheSoloGuide

    buying a historic motel

    kevin81416 Newbie
      My partner and I got the incredible opportunity to run a historic motel in the town we live in. We live on site in a great apartment and have full run of the business. The current owners live in diffrent cities and want to sell the motel.

      • I have talked to them about buying it from them but my partner and I don't have any money for a down payment. The current owners have 35%/65% partnership right now. One owner is a older lady who ran it for 40 years and now is fighting cancer and has no more interest in the business whatsoever. The other owner is really just an investor and doesn't want to spend the time and money on the motel anymore.*

      • I thought of a mini management buyout but haven't found out much information on the subject yet. I don't know any investors or anything like that. The current owners are really wanting to work something out with us so we can purchase the motel from them. I just want something to bring to the table also.*
      • If anyone has any ideas or opinions please I would love to know them. thank you very much*

      passionate and pressured in colorado.......
        • Re: buying a historic motel
          smiling Newbie
          maybe that is woth to do so.
          • Re: buying a historic motel
            Tracker

            Kevin:

             


            Do either you or your partner have experience in this industry?

             


            The answer to this question will play a big role in whether this business truly is an opportunity for you and why an investor may be interested in backing you.

             


            If you and your partner have solid experience in the industry, you have a better chance of convincing the current owners to do a seller carry back, whereby they act as the bank and you pay them back (i.e. buy them out) over a specified period of time. In this scenario, you may be able to secure a loan or find an investor that is willing to back you for the down payment instead of coming up with the total purchase price on your own.

             


            It will help if you have clean credit with good scores (700+) and show some financial stability of your own as in other income that will help cover your personal bills if there isn't enough profit in the business to pay you a decent paycheck and cover the repayment of the loan.

             


            I hope this helps for a start.

             


            All the Best,

             


            Doug Dolan

             

            The Solopreneur's Guide

             

            http://thesologuide.com/