Commercial Event Space Investment with Owner Living Quarters
Just curious if anyone has ever invested in wedding event estates. I have a good opportunity to acquire an estate that was primarily a wedding event space but could be used for any type of event. In addition, it has an owner living quarters so the property can also be "house hacked".

I am just curious if anyone has purchased an asset like this before and what their experience was.
[{"id": "i8tg8zn", "text": "Looked at financing a few... they were tough before COVID due to the one off transaction nature of the wedding industry. 2 years of delays, cancelations, and virtual elopements haven't made it any easier. \n\nIs the zoning &amp; size of the property such that you can get a 30 year mortgage on whole property to \"house hack\" it? Are you planning on providing more than just the venue (catering, decorations, tables, chairs, linens, etc.)?", "replies": [{"id": "i8xv8z4", "text": "Zoning is commercial, but I believe that I will be able to get a 25 amort loan no balloon. We will provide catering and all event materials you listed. Did you end up financing any of those deals, what did the proposed terms look like?", "replies": [{"id": "i8xxk0s", "text": "The one I got home on was a smaller space,  150 max guests (could only seat that many for dinner with the patio).\n\n5/20 on the real estate at 80% of cost\n5/5 on a bundle of rental items (tables, chairs, linens, and some bigger decor items) at 75% of invoice\n\nThey had to do the kitchen reno &amp; equipment on their own. \n\nWhen you say a 25 year am with no balloon is that a residential mortgage product or a commercial facility?", "replies": [{"id": "i8xyk8x", "text": "This is a similar size space. However, this property comes with a full size commercial kitchen &amp; equipment. All rental items are already included with the property. \n\nIt will be a 25 commercial product.", "replies": [{"id": "i8y1j1n", "text": "Make sure your purchase agreement places a value on the real estate and rental items separately. You don't want the appraiser coming back with a real estate value, personal property value, and potentially a goodwill or going concern value.", "replies": [{"id": "i8y1u6v", "text": "Great advice! Thank you. Can you explain why exactly this would become an issue for the financing side.", "replies": [{"id": "i8y4gf1", "text": "Unless it's an SBA note a bank isn't going to want to finance these much shorter lived assets or intangibles over 25 years.  If you don't assign a value to them you're dependent on an appraiser that you have no control over (they work for the lender and are probably selected blind on bid $ and turn time)  either assigning a value or just lumping it as goodwill or going concern (not really collateral for the bank). \n\nIt's partially an anchoring thing... sellers and buyer agree this stuff is worth X... 3rd party isn't going to say it's worth 10x more or 10x less so you get a more moderate delta between contract and collateral values.\n\nPlus it can be advantageous to the seller tax wise depending on his situation.", "replies": [{"id": "i8y5x7q", "text": "Excellent, thank you for the insight!", "replies": [], "depth": 8}, {"id": "i913r6b", "text": "To piggyback as a commercial appraiser, if you think there is real value, see if you can get an M&amp;E appraisal. I've always asked the buyer/seller what the FF&amp;E is worth and then run it by some local M&amp;E guys to make sure they aren't bsing. At the end of the day, again if you think there is real value here, M&amp;E appraisals are relatively cheap and can save you a headache", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i8wtwzc", "text": "Do you have a down payment and the chance to finance?", "replies": [{"id": "i8xv9y7", "text": "Yes", "replies": [], "depth": 2}], "depth": 1}]