Background: I live in a small town of about 30,000 people in Northern California. In the surrounding cities (of a 40 mile radius) there are approximately 580,000 people. I have been decorating for Halloween for many years and over the last 7 years have had a home haunt that is manned by our Boy and Girl Scouts Troops. All money made is split between the 2 groups and used for outings and activities for the kids. We have had nothing but positive feedback on our haunt (some people saying that it is better than Six Flags, Pirates of Emerson, the haunt at the local fairgrounds, etc.) We have decided that we would like to go pro with our haunt as it grows bigger and bigger each year. I don't know how much longer the city will turn their heads and allow us to continue at my home. My home sits on a one acre lot as do the 4 other houses on our street. Everybody on my street is cool with it. I just worry that as it grows problems may arise that would affect my neighbors and that is not something I am okay with. I have been on this forum almost daily since I discovered it last Aug. or Sept. I have read nearly everything posted since that point and have asked numerous questions. I have purchased Allens book and read it in its entirety.
On the next street over from my house there is a home that is 2,064 square feet and sits on almost 3 acres. To the right of the main house is a shed-like structure that is 16' by 21'. It houses the well for the property in one small corner but is nicely constructed and could be used for whatever. There is a large pool out back (which is currently empty), and a huge warehouse structure out back which is approximately 40' by 60'. I believe there would be no problem being able to put a haunted house on this property as the other occupants on that part of the road are as follows: Brownstone Gardens (owner occupied but they have beautiful grounds where people get married and have receptions), Fairview Heating and Air Conditioning (owner occupied and run the business out of a warehouse on the property), a church (there is also a home on the property where the pastor and family live), and a home for severely disabled children.
Near as I can tell with everything that I have read, no bank is going to loan money to start up a haunted house business. One needs to have the capital to start their venture or they will have little chance of success (at least that seems to be the general consensus on this forum).
The house I have described above has been badly abused. The main wiring was cut in the box and many other wires and breakers destroyed. I have already had an electrician come out and look and he quoted $20,000 (on the high side) to fix the electrical damage. The carpets and linoleum have been ripped up, destroyed, or totally removed. The counter tops in the kitchen and bathrooms are there but all the sinks have been bashed out and plumbing needs to be repaired. It needs paint, there are no kitchen appliances, and there are a few broken windows that have been boarded up. Three years ago when the property values out here were soaring this was a beautiful house that sold for $1.5 million. It is listed today for $343,000. According to my real estate agent and mortgage broker, because of the condition of the house, no bank will loan money to purchase this house because it is not in "move in" condition. They said these types of houses must be purchased for cash, renovated, and then sold or refinanced by the bank. She also said that it probably could be acquired for as little as $300,000-325,000 since it would have to be a cash purchase. It is also a foreclosure and bank owned.
Herein lies the problem I need HELP with: Before the stock market "crash" I had the funds to purchase this property outright, but along with everyone else I have lost my "ASS"!!! I do, however, still have enough funds to do the renovation that are required and would have some money left over. My idea was to see if there was an investor that may be interested in putting up the cash for the purchase of said property and I would pay for the renovations. I believe that all renovations could be done quickly and we would be able to open in time for Halloween 2009. At the end of one year from purchase, I would be able to refinance the property (as it would be in livable condition) and acquire a bank loan to repay the investor the original purchase price and 15% of that price (i.e. loan of $325,000 plus $48,750 interest).
Question: Is there anyone that knows of investors that might be interested in this type of investment, either on the forum or otherwise? I have heard of "angel investors" and have done some reading with regard to these type of investors. Does anyone have any experience or knowledge with this sort of investor? Is this a feasible idea or is this yet just another one of those "wild hairs up my ass?" I need all the help I can get here with regard to this situation and would appreciate hearing from anyone who can give me input, help me make an informed decision or just tell me its "CRAZY" and give it up!!!!!
On the next street over from my house there is a home that is 2,064 square feet and sits on almost 3 acres. To the right of the main house is a shed-like structure that is 16' by 21'. It houses the well for the property in one small corner but is nicely constructed and could be used for whatever. There is a large pool out back (which is currently empty), and a huge warehouse structure out back which is approximately 40' by 60'. I believe there would be no problem being able to put a haunted house on this property as the other occupants on that part of the road are as follows: Brownstone Gardens (owner occupied but they have beautiful grounds where people get married and have receptions), Fairview Heating and Air Conditioning (owner occupied and run the business out of a warehouse on the property), a church (there is also a home on the property where the pastor and family live), and a home for severely disabled children.
Near as I can tell with everything that I have read, no bank is going to loan money to start up a haunted house business. One needs to have the capital to start their venture or they will have little chance of success (at least that seems to be the general consensus on this forum).
The house I have described above has been badly abused. The main wiring was cut in the box and many other wires and breakers destroyed. I have already had an electrician come out and look and he quoted $20,000 (on the high side) to fix the electrical damage. The carpets and linoleum have been ripped up, destroyed, or totally removed. The counter tops in the kitchen and bathrooms are there but all the sinks have been bashed out and plumbing needs to be repaired. It needs paint, there are no kitchen appliances, and there are a few broken windows that have been boarded up. Three years ago when the property values out here were soaring this was a beautiful house that sold for $1.5 million. It is listed today for $343,000. According to my real estate agent and mortgage broker, because of the condition of the house, no bank will loan money to purchase this house because it is not in "move in" condition. They said these types of houses must be purchased for cash, renovated, and then sold or refinanced by the bank. She also said that it probably could be acquired for as little as $300,000-325,000 since it would have to be a cash purchase. It is also a foreclosure and bank owned.
Herein lies the problem I need HELP with: Before the stock market "crash" I had the funds to purchase this property outright, but along with everyone else I have lost my "ASS"!!! I do, however, still have enough funds to do the renovation that are required and would have some money left over. My idea was to see if there was an investor that may be interested in putting up the cash for the purchase of said property and I would pay for the renovations. I believe that all renovations could be done quickly and we would be able to open in time for Halloween 2009. At the end of one year from purchase, I would be able to refinance the property (as it would be in livable condition) and acquire a bank loan to repay the investor the original purchase price and 15% of that price (i.e. loan of $325,000 plus $48,750 interest).
Question: Is there anyone that knows of investors that might be interested in this type of investment, either on the forum or otherwise? I have heard of "angel investors" and have done some reading with regard to these type of investors. Does anyone have any experience or knowledge with this sort of investor? Is this a feasible idea or is this yet just another one of those "wild hairs up my ass?" I need all the help I can get here with regard to this situation and would appreciate hearing from anyone who can give me input, help me make an informed decision or just tell me its "CRAZY" and give it up!!!!!
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