Yesterday we got the Russet Valley renovation financing all under control. We’d had a number of options for it, and just had to figure out which one would benefit all of our team the most.
The original plan was to sell the house to Hermit Haus Redevelopment and do the renovation as part of that company’s activities.
However, as Lee kept looking at the numbers, he realized it would benefit everyone more in the long run if he and I held on to the property, and refinanced it, so that we can get the funds for the renovation that way. Our business will benefit, because we’ll hire Carol to do project management and pay her a fee for that, which will probably be more than she’d have made off a sale.
It also frees up the money quickly, so she can start paying the new contractors we’re working with, Oscar and his team, right away.
We used our friends at Buckholts State Bank for the transaction, and we found it pretty interesting. There were all sorts of forms none of us had ever seen before that came from the other parties in the transaction (we were paying off a loan, too). So, we all looked much harder at the paperwork than normal, but I think between Lee and the bankers, we got it all straight. Even the notary had to prove who she was. It was funny how different this one was. But we’re professionals!Hermann says please like and share!