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

You have some of what of an issue here. Most banks are going to require collateral of the amount you are trying to borrow. I would recommend finding an Venture Capital company in your area under SBA.

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I have carefully read your note.I am a private lender and may be willing to help. You email me on phillfokings@yahoo.com or call me on 973-7893191, i will be waiting to hear from you.

Hi,

Perhaps you might want to check out http://www.investorinspector.com/new_products.php?id=143 for funding. They have deep pockets and are good at what they do, for a reasonable price...FYI. I DO have other resources as well if you'd like but they would take longer than this one. Don't know what your time frame is. Let me know. Feel free to call me at 612-202-0942.

Take care,
Elizabeth Henderson, MBA
EHenderson@FinancialVisions.net

Darren...

You have a lot of things going for you. Your credit scores are good, you have experience in marking and hospitality and adventure. BUT, and it's a big BUT.

You're going to need a strong businessplan, and a lender who's comfortable with foreign lending, preferralbly a bank that might have branches in Costa Rica...otherwise in the event of default they have no recourse or it's very expensive for them. The other hurdle is going to be the $50k down. Most lenders are going to want you to put up at least 30% and maybe more for an offshore loan.

Your businessplan is going to have to address why they only run it 6-months a year and you feel you can build it by going for all 12. Is it a weather issue or something else that prevents it from being open 12 months. Also, the 165k it nets now will be quickly consumed with the debt service on the two loans. What are you going to live on?

If the numbers are accurate it seems like a pretty fair deal, especially given there's real estate involved. Have you spoken to a lender in CR?

Hope this helps
Denny

Denny