A limited company is planning to get a mortgage in the amount of $ 160,000 for the acquisition of ownership in the state of Michigan. Currently, the building is a duplex (house with two separate apartments) which future owners are going to turn to the hotel for a family format Bed and Breakfast (B & B). So basically they are starting a b&b business.
For its part, the company’s founders are willing to invest $ 100,000 of their own funds as a down payment on a house, whose total cost is $ 260,000, and they will pay the costs of the transaction and all necessary documents. Now the house will serve as collateral for the mortgage loan. In addition, the couple – business owners will seek an additional $ 85,000, which would cover the initial cost of repairs and to the future of the hotel. For their part, they have already invested $ 6,670 as seed money.
For the hotel business was established a limited liability company. It will be a decorated home, which will be the remake of the duplex with six en-suite rooms in a hotel for a family with four bathrooms equipped with bathtubs, not showers, and with working fireplaces. Private mini-hotel will operate 365 days a year.
The uniqueness of this business family size is that the expenditure will include mortgage payments, property taxes, insurance, home, and the cost of its maintenance. For the same reason the spouses income will be included in the profits of the new hotel.
The couple will continue to work in their offices as long as the new business will not take more than 40% of their working time. The annual income of the company will not include bonuses such as medical, dental insurance, life insurance, vacation pay, and other compensation and pension payments to the founders of the company.
The building, which will be set aside for a hotel, has a very good location – in the center of the city, surrounded by other historical buildings. Close to it is a museum, library, shopping malls, beach and bike path.
Also, within walking distance of it are two excellent restaurants, and within a radius of one mile – and even the university and hospital. See, there is not that much to starting a b&b business.