I need aquisition money for a nearly 10,000 sq ft building housing nine apartments and a running bar with a closed restaurant portion which we will restart around 4-5 months of aquisition. Building is being sold for $165,000 but appraisal value is around $250,000. The building is in a great location, has had some recent updates, and needs only around $100 for rehab. (Yes, only $100, for a couple of replacement floor and ceiling tiles in one spot, due to an overflow in the above apartment). The apartments are always rented with a waiting list, the revenue for them is app. $4,000 per month; the bar is only open infrequently due to owners declining health but still brings in app. $5,000 per month (could be doubled with longer hours, especially after food section is reopened); the food section, within about 4 months could gross around $30,000 per month; added would be the occasional rental of the second dining room, and the split share of the games. Which translating into terms of usable cash after expenses (minus loan repay-unkown variable until loan and terms are actually set), the amount is roughly $15,000, and from what info I’ve already learned about the whole “alternative financing options”, I would probably only need about $3,000 of that for the monthly mortgage payment. The problem comes with my credit, I have good credit for the last 20 months, but my credit score is only 552 due to some items on my reports-most of them mine for medical bills due to an illness, some medical for my children for medical, and some of them my ex-husbands-but in my name since I used to have perfect credit-so I have to pay them. I can provide a downpayment if not too high and does not require seasoning. Since for the past three years I spent my time going to college part-time, taking care of my elderly mother, and home schooling my son, I have no tax returns, and my income has to be stated since it comes from a couple of part-time off the books avenues. My health has been been better for a while, my son is out of school, and my mothers condition is stable, so now since I have come upon this exceptional opportunity and my calendar is open I can devote as much time as needed to this business, even though with the revenue it is and can be producing, it would still be extremely profitable with just hiring additional employees. In addition to the two bar people already employed there, I already have a couple of possible options as far as experienced kitchen help; and I have bartending, waitressing, cooking, cleaning, books, tax, and manager/owner experience myself.
If any people or entity can help with this or know someone who can, I would greatly appreciate your ideas or info.
The owner is patiently waiting as she would really like to see my family take over-we have met several times as well as calling her periodically and have developed a good relationship with her and her family, but we would really like to do this deal as soon as possible so both sides can move on to do things they need to do. Thanks.