How to acquire a $6 Million loan to purchase a golf course?
Saturday, May 23rd, 2009 at
12:03 pm
I am in my 20s and would like to move south and buy an established and already profitable golf course that operates all year long. Is it possible to get a loan of this size from a bank, or any institution, with little money down? Also I would be possibly splitting this with 1 or 2 close friends.
Asked by:Kevin
Tagged with: Golf Course • Money
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you must apply with a business plan in hand
First of all you must have experience at running a golf course. very few people, private investors nor institutional banks or investors will lend any amount of money to someone that is not accustom to running a golf course.
You need a detailed business plan and the type of entity that will be running the golf course like a corporation either profit or non-profit.
Business loans are not normally 100%, 50%-60% is the norm. The lender want to see some of your money on the table. They are not gonna pay for a risky venture that they might have to take over.
You should consider working at a golf coarse as a manger or some sort, or applying for a position that will lead to you being in a management position shortly. You have to pay your dues before you can reap the harvest. So plant your seed, get the experience,understand the business and other inside information that you need to become successful in the area you want to be an expert in.
Saturday duffers are not seasoned enough for a lender to invest that kind of money in.
I hope this has been of some use to you, good luck.
“FIGHT ON”
with your gumption, try it.
how about this approach;
give the seller a quit claim to protect them, and offer 6.2m and
no money down and they handle all the cash collected daily
and your carryback is 30 yrs, with a 6 yr balloon.
you did not state what you will do to make the course even more
exciting.
what is the motivation as you see it for anyone to lend to you?