Looking @ Buying a Boarding Kennel
04-05-2007, 07:12 PM
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Looking @ Buying a Boarding Kennel
Ok, here'* the dilly.
We are very close friends with a couple that own The Natural Pet Center...a pet shop, grooming center and rescue endeavor. They purchased it from the previous owners over a year ago.
The previous owners also own a boarding kennel that sits on 10 acres and two houses 3 miles south of town.
It is for sale.
$220,000 buys you 10 acres, an indoor kennel facility, an additional barn/shop building, grain bins, other outbuildings, all fencing/gates, horse boarding facilities, and TWO HOUSES.
Look at it this way, $120k for the land/business and $50k per house.
We are looking at going into as partners with them and each living in the houses on site (we'd both have to sell our current homes....meh whatever)
We'd continue with boarding/grooming at the kennel location, plus keep running the petstore, and move the rescue animals out to the kennel rather than the limited space at the store.
Major question: How would you finance something like this? Would be be possible to take out an SBA loan for the business/property then take out separate mortgages on the houses? Or deed the land or what?
We are just in the preliminary stages of thinking about it, but I'd like as much info as possible.
Plus, I'd love to fulfill my dream of running a kennel!
Thoughts?
We are very close friends with a couple that own The Natural Pet Center...a pet shop, grooming center and rescue endeavor. They purchased it from the previous owners over a year ago.
The previous owners also own a boarding kennel that sits on 10 acres and two houses 3 miles south of town.
It is for sale.
$220,000 buys you 10 acres, an indoor kennel facility, an additional barn/shop building, grain bins, other outbuildings, all fencing/gates, horse boarding facilities, and TWO HOUSES.
Look at it this way, $120k for the land/business and $50k per house.
We are looking at going into as partners with them and each living in the houses on site (we'd both have to sell our current homes....meh whatever)
We'd continue with boarding/grooming at the kennel location, plus keep running the petstore, and move the rescue animals out to the kennel rather than the limited space at the store.
Major question: How would you finance something like this? Would be be possible to take out an SBA loan for the business/property then take out separate mortgages on the houses? Or deed the land or what?
We are just in the preliminary stages of thinking about it, but I'd like as much info as possible.
Plus, I'd love to fulfill my dream of running a kennel!
Thoughts?
04-05-2007, 07:24 PM
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You really need to talk to a financial expert/mortgage officer for this one. Sounds way too different than buying just a house or just a business to rely on our advice....
04-05-2007, 07:31 PM
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I know here if the property is commercial you can only finance 65%
to your question about the houses you might be able to pull that off IF they are or have been severed.
But go to the bank and talk to them for a SBL you will need a business plan and it will have to be rock solid. Also check into local and federal grants for this type of venture.. Will you need to be relicensed in order to run a rescue facility and what permit would you need to have.
Also think about what type of income this business is going to generate, will it support it self. And what about Zoning make sure if you take over the property they county/town isnt going to want to rezone it.. and or reassess it'* value
to your question about the houses you might be able to pull that off IF they are or have been severed.
But go to the bank and talk to them for a SBL you will need a business plan and it will have to be rock solid. Also check into local and federal grants for this type of venture.. Will you need to be relicensed in order to run a rescue facility and what permit would you need to have.
Also think about what type of income this business is going to generate, will it support it self. And what about Zoning make sure if you take over the property they county/town isnt going to want to rezone it.. and or reassess it'* value
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