Business help starting up an Artist Retreat in southern Spain

Discussion in 'International Business' started by Bibbzter, Aug 31, 2010.

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  1. Bibbzter

    Bibbzter UKBF Newcomer Free Member

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    Hi everyone.

    My name is Christian. Me and my wife are just about to start up a business in south of Spain and we know very little about the financial and legal bit of it. That’s why I’m here on the forum to try and get a bit of help.
    The business is an artist retreat made up of 2 houses with 11 bedrooms for the guests. We are very much on top of how the actual business will run as we have spent most of our lives dedicated to everything this business is about and we have no doubts that it will work very well.
    It’s not just your everyday artist retreat where people come to do some painting and writing. It’s a new vision of what an artist retreat should be. It’s a pop culture artist retreat with purpose and meaning. People from all over the world can come here to learn about art, themselves, the environment, sustainable living, health, spirituality, radical and critical thinking and how to become greater artists and human beings. We love pop culture and we want to bring meaning and purpose back into the cinemas, living rooms and galleries again.
    We have found the 2 houses and we have already agreed on a rent-to-buy deal over 2 years with the owners but we are still waiting for some of the legal paperwork concerning the land registry. We (Me and my wife) are considering going to the bank now and see if they would be interested in lending us the amount for the mortgage but since we do not have enough money for the deposit or no experience running a business on this scale I guess they might be a bit hesitant to just hand over the money at this stage. (Even though I assume the houses would be considered financial security)
    That is why we have convinced the sellers to agree on a rent-to-buy deal. The 2 year rent-to-buy contract would let us gain some experience and give us a track record that our business is in fact profitable enough for a bank to grant us the mortgage for both houses. (At least that is the plan.) But it would be so much easier if we could get the mortgage now and buy the houses directly. That way we could make alterations and fix up the houses just the way we want them without having to check with and get approval from the owners every time we want something done.
    The two houses are worth 800000 Euros and since it’s both a business loan and a mortgage I’d like to know how both banks and investors would look at lending us that kind of money, considering the houses would work as a security against the loan/mortgage?
    Both houses are practically ready to start up the business in but there are things we would like to buy, change and fix up. It’s all a matter of how and when we would be able to get any financial support to do so. We have a great vision of how we’d change it if we had the money. So another question is if/how banks/investors lend out a smaller amount of money for a start up business loan when the lender is about to start up their own business. We don’t have any other income as this will be our full time jobs. How does it work? Where can we turn to?
    And what about grants? Since we are very much aiming to become environmentally friendly, sustainable, healthy and also support rural tourism in Spain I would guess there are a few grants we could apply for but it’s just such a jungle out there. Where do we look?
    The money we have at the moment is barely or just enough to get the ball running with the rental contracts and start up costs but it’s going to be very tight without any finance of some sort.

    We’d like to get some more help and guidance before we go to a bank and act like we have no idea what we are doing. (Which in some cases we don’t, but we are very happy and open to learn.)
    What should we do at this stage? Do we contact an accountant? Who can help us with our business plan?

    Would anyone be able to give us some guidance? Or maybe you would like to invest in our amazing retreat or even become a business partner of some sort. We are very open to any suggestions you might have.
    If you want to know more about us we are happy to give you a link to our website for the retreat where you can read a lot more about the business and we are more than happy to share our financial calculations so far. We have also started working on a business plan which we are happy to show as well.

    Thank you so much for your time and sorry for rambling on for too long.

    Christian & Susanne
    Posted: Aug 31, 2010 By: Bibbzter Member since: Aug 31, 2010
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