[jyl]

Well, we've done a bunch of due diligence. Reviewed the building's accounts, interviewed the property manager, checked on current booked status for 2021, gone through building, figured out the applicable tax rules, modeled out scenarios under different scenarios, talked to local wedding planners, talked to the former property manager, etc. Still waiting on title report, professional property inspection, deed review, any employment contracts. Basically looks like under almost any scenario, the property will support itself, fund repairs and improvements, and generate a decent amount of excess cash flow for the neighborhood in addition to being a resource for neighborhood groups, fundraisers, etc. However, in the most negative scenario (assume cannot reopen until Jan 2022 - I think that is extremely unlikely but need to consider it) the property will burn around $70,000 before it becomes self-sustaining (most of that is the 1+ year of non-operation). So we'll need to raise, or more likely borrow, around $50,000 to establish an adequate reserve. That's not too much money. I'm thinking of 5 years at 5% interest, prepayment penalty, secured by the property (appraised value $1MM). I think we could get 10 neighborhood families to take down $5K each as private loans. What do you guys think?