What did you look at? Why wouldn't they have worked? The interest rates were, were much more manageable with the sba and because, because we didn't have the operating statements because Swann was closed for some time and the person, the company we were buying it from had only owned it for, for two and a half years.
Acquiring Minds
How to Build $7.5m in Net Worth by Buying a B&B
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So most lenders wanted to see three to four years of financial statements and we were unable to provide, provide that SBA was willing to work with us without that. Ah, there must have been in your favor the fact that there was a gigantic piece of property. I mean the, the, the vast majority of the purchase price was really. Yes.
Attributed to the real estate. Many of my guests buy businesses, so called airball businesses, where there's no there there other than the employees doing the work. So if, if a bank is to foreclose on the business because the loan payments aren't met, there's really nothing to seize.
In your case, real estate is, you know, bank's favorite thing to seize. So that, that must have given them comfort. But it sounds like, in fact, why, why do you think it was taking so long?
Well, sorry, you've, you've said because you didn't have the, they didn't like the fact that the, the business had no performance documentation. Yeah. Any other reasons it was taking so long? I think it was the end of the year.
Right. We got pre approved in July, approved at the end of October. It was. So it was pre approved by the bank and then was submitted to SBA in November. Right. And so that, then you're getting into the holiday season, which is just unfortunate.
And then it had to go to special committee at the SBA because of the nature of my husband's job. So that, can you say more about that? Sure. So it was referred to the SBA standard of conduct committee because my husband works on the Hill.
And so that added, I think so. Like an ethics audit of the situation or conflict of interest audit sort of thing. Yeah. And going back to a point that I kind of want glanced off earlier, do you think that this is a piece of real estate with a business attached or a business with a piece of real estate attached? It's, it's obviously it's, it's more a real estate purchase.
What it is, it feels like, is. You were able to buy a huge, beautiful, expensive piece of real estate because it had a, a business that enabled paying down the loan and the real estate. Absolutely. You put it beautifully.
That's exactly how I think of it. Yeah. Because, because fundamentally the, the business, the, the, the, the real estate is, we've already said it's worth, let's, let's cut we kind of roughly 6ish million bucks. And if, if you get the business to throwing off $300,000 a year, even then a business like that only trades.
For a million dollars. But that business, the BNB service hospitality aspect of the business isn't even there yet. So. Yeah, so the, the. Okay. Exactly, exactly. So this was a Trojan horse into owning some awesome real estate.
Yes, but don't tell anybody.
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