Posted by Rich on December 01, 1999 at 08:03:36:
I want to thank the individuals who gave of their time and brain power on my recent post. I would still like to see more options. Here’s the deal for those who missed it with some additional explanations:
I recently purchased a commercial property that I plan on putting two businesses into. (They already operate as 2 separate entities in separate buildings - I’m combining them in this one property and leasing their former buildings) One is an antique shop and the other is an adult social club (liquor - pool tables - video games, etc) which is an IRS 503(c) non profit club - I’m the president. I paid $65k for the property. It appraised for $115 ‘as is’ and once I get the businesses in, it should appraise for a good deal more. I asked a contractor what it would cost to build the building today and he estimated about 1.2 million. It’s over 17,000 sq. feet on 4 floors. (1 drawback - limited parking around the property - metered parking on the main street and you must compete with surrounding businesses. This is a college town where students can walk to and from downtown - so a college oriented business is almost a must).
I thought of selling 49% interest in the commercial property to a friend. (I like the idea of a limited partnership, as suggested by one writer, but am not sure how to structure it). My friend told me to write up a proposal and he’d check it out and we’d go from there.
Also, anyone that’s familiar with non-profits can weigh in with some creative fundraising techniques to renovate the club’s part of the building.
Let’s hear those brian cells churning!
Thanks again to one and all, in advance.
- Rich