With God, All Things Are Possible
I spoke with the manager here, who is also a limited partner in the motel. He informed me if I didn't buy the motel before April, then it would be off the market until November. This is because of the tourist season and the profit the owners make during that time. I went to SCORE and they helped me fine-tune the business plan and spoke with my banker. On the sale price, it will take $360,000.00 down for the loan. The issue of possibly buying the motel under a 1 year lease purchase is off the table because the main partner is wanting to buy a 7 million dollar motel in the DC area near the airport. With his outstanding loans from 2 other motels in Williamsburg, he can not get the loan for the motel in DC.
But, also, there is another aspect to the pressure from the owner. Two other motel owners in Williamsburg got ahold of my business plan. They have also now approach the main partner to buy. So I proposed plan B to the main partner:
The ministry leases all 22 rooms (which are the rooms in the business plan for those who are homeless and in transition) for $150.00 a week from the months of April through November 1st (31 weeks) ; BTW, in July and August, the rooms on this side goes up to $250 a week per room.
After the monies are paid to the motel, anything above that , goes to the ministry for an escrow account to build up a down payment (which will be $27,280.00)
We, the homeless, maintain all 22 rooms in regards to maintenance (many homeless are in this field and construction), housekeeping and weekly supplies (soap, towels, linen, etc.) (Holiday Inn Express gave my non-profit several sets of sheets, towels, washcloths and bath mats last year and churches who have laundry facilities have agreed to wash them once a week for us with their volunteers as well as W&M students.)
No front desk service, except for phone calls and billing of phone calls.
I will have a master key to all rooms and 3 sets of keys for each room
The motel covers the electricity, water, cable and phone
The main partner will want one month down as a deposit ($13,200.00) and 1st month to cover April ($13,200.00) on the rooms. Salvation Army is wanting to join in with this venture since they do not get weekly rates at the motel they currently use.
The main partner has already accepted this, so I am guaranteed first to buy in November when it goes on the market again
What this allows:
An estimated 6 months for fundraising, contacting investors, grants and/or the time for processing with SBA
No competition clause for purchasing the motel after the season is over
A small escrow built up for the down payment to show the community I also am investing in the purchase and not walking into the venture with nothing from myself, since this will be ran as a profit and non-profit LLC
Time to complete my LLC application and approval as "Angelic Assistance LLC
If, we could get 26 people to donate $1000.00 to the ministry, that would cover the expense. This would also mean that if a church, organization or agency had a person that needed a place to stay for a week or two or more, the first 2 weeks would be covered and then they could get on their feet with a paying job and cover themselves. This would also take the pressure off the churches and put it onto us, as God's shoulders are large enough to carry the load. I am currently doing cold calling fundraiser as we speak and putting up $500.00 (which is a lot for us at the moment.) If you can't give that amount, then give what you can and pass this along to others.
The downfall is this, we must have the $26,400.00 by April 1st. Checks can be made payable to WHI (Williamsburgs Homeless & Indigent and it is tax deductible as we are now a non-profit and listed on guidestar) and in the memo put "lease purchase for rooms. Our mailing address is P.O. Box 366, Lightfoot, VA 23090
Pray about it, think about it, consider it. If this small plan does not occur, 3 families with children, 4 single men, 2 single women and us will be on the streets by July.
When God does provide the motel, there will be many updates and improvments, including a facelift for the outside!
I spoke with the manager here, who is also a limited partner in the motel. He informed me if I didn't buy the motel before April, then it would be off the market until November. This is because of the tourist season and the profit the owners make during that time. I went to SCORE and they helped me fine-tune the business plan and spoke with my banker. On the sale price, it will take $360,000.00 down for the loan. The issue of possibly buying the motel under a 1 year lease purchase is off the table because the main partner is wanting to buy a 7 million dollar motel in the DC area near the airport. With his outstanding loans from 2 other motels in Williamsburg, he can not get the loan for the motel in DC.
But, also, there is another aspect to the pressure from the owner. Two other motel owners in Williamsburg got ahold of my business plan. They have also now approach the main partner to buy. So I proposed plan B to the main partner:
The ministry leases all 22 rooms (which are the rooms in the business plan for those who are homeless and in transition) for $150.00 a week from the months of April through November 1st (31 weeks) ; BTW, in July and August, the rooms on this side goes up to $250 a week per room.
After the monies are paid to the motel, anything above that , goes to the ministry for an escrow account to build up a down payment (which will be $27,280.00)
We, the homeless, maintain all 22 rooms in regards to maintenance (many homeless are in this field and construction), housekeeping and weekly supplies (soap, towels, linen, etc.) (Holiday Inn Express gave my non-profit several sets of sheets, towels, washcloths and bath mats last year and churches who have laundry facilities have agreed to wash them once a week for us with their volunteers as well as W&M students.)
No front desk service, except for phone calls and billing of phone calls.
I will have a master key to all rooms and 3 sets of keys for each room
The motel covers the electricity, water, cable and phone
The main partner will want one month down as a deposit ($13,200.00) and 1st month to cover April ($13,200.00) on the rooms. Salvation Army is wanting to join in with this venture since they do not get weekly rates at the motel they currently use.
The main partner has already accepted this, so I am guaranteed first to buy in November when it goes on the market again
What this allows:
An estimated 6 months for fundraising, contacting investors, grants and/or the time for processing with SBA
No competition clause for purchasing the motel after the season is over
A small escrow built up for the down payment to show the community I also am investing in the purchase and not walking into the venture with nothing from myself, since this will be ran as a profit and non-profit LLC
Time to complete my LLC application and approval as "Angelic Assistance LLC
If, we could get 26 people to donate $1000.00 to the ministry, that would cover the expense. This would also mean that if a church, organization or agency had a person that needed a place to stay for a week or two or more, the first 2 weeks would be covered and then they could get on their feet with a paying job and cover themselves. This would also take the pressure off the churches and put it onto us, as God's shoulders are large enough to carry the load. I am currently doing cold calling fundraiser as we speak and putting up $500.00 (which is a lot for us at the moment.) If you can't give that amount, then give what you can and pass this along to others.
The downfall is this, we must have the $26,400.00 by April 1st. Checks can be made payable to WHI (Williamsburgs Homeless & Indigent and it is tax deductible as we are now a non-profit and listed on guidestar) and in the memo put "lease purchase for rooms. Our mailing address is P.O. Box 366, Lightfoot, VA 23090
Pray about it, think about it, consider it. If this small plan does not occur, 3 families with children, 4 single men, 2 single women and us will be on the streets by July.
When God does provide the motel, there will be many updates and improvments, including a facelift for the outside!
posted by Patti @ 9:19 AM
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