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Forum nameFinancial Feast
Topic subjectHelp needed for financing
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=105&topic_id=256&mesg_id=256
256, Help needed for financing
Posted by Darren Kennedy, Wed May-02-07 05:29 AM
I am looking for ideas/additional sources of funding.

My wife and I have been researching the possibility of purchasing a
business that operates in Costa Rica but all accounts/central reservations and LLC are based out of Idaho. We have been looking at many different types of funding but are getting more confused as we go along in the process.

*The owners are willing to finance up to 50 percent of purchase at 10%.

Business General:
Adventure Sports Company
Purchase price: $540,000
Yearly Gross: $520,000
Cash flow/Net in 2006: $165,000 (add another 25K to the 165 if we take over management.)

Real-estate included in the purchase - 3000sq ft. warehouse with
attached 1 bedroom studio., Bed and Breakfast with 8-12 rooms, &
Mountain. Jungle property with direct river access and 12 cabins.

The company currently advertises in National Geographic, Men's Health,etc.

Cash flow is NET after all costs including managers salary.

Growth Potential: Trips are only being run 6 months of the year. Double growth is possible with current trips and itineraries if we decided to book the rest of the year. Other options include breaking away from the core business to offer naturalistic trips for photographers, students, etc.

My wife and I could come up with about 50K by selling our house and cashing in retirement, savings, etc.

We are currently looking at options - 70% LTV, 9.75 fixed, 10 years.

About Us: The bulk of my work experience, marketing/media, adventure sports industry, service/hospitality, & Property management. I am an avid traveler, mountain biker, rock/ice climber, kayaker. Currently manage 7 member team. I also owned my own video production company for 4 years.

My wife also shares the same passions when it comes to adventure sports, and our experience in hospitality is close to the same. Where I have marketing and media experience, she has social services exp.


Our Credit Scores are 720 & 760

Thank You,
Darren Kennedy