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Hi,
The farm operates with the income it generates and does not rely on donations. The farm does not produce much from vegetable sales until the July to December period. During these months it generates $50,000 per month. The farm has a restaurant which plans to reopen on July of this year. The restaurant stopped operating 3 years ago because the chef and the manager left. The restaurant should gross at least $50,000 each month, year round. It used to make $50,000 per month when it was operating. Anticipated income from vegetables and industrial hemp this year is $400,000. The property is appraised for $955,000 with a $200,000 mortgage balance.
The above value is allocated as:
Restaurant $130,000
Farm $650,000
West House $55,000
Bed & Breakfast $120,000
The 2016 tax return for the foundation (has a 6 month extension for 2017) shows gross revenue of $33,531. The president has a 660 credit score and their annual income is $1,242,000. The total market value for real estate he owns is $1,600,000 with a mortgage balance of $30,000. Personal liabilities total $137,000. The president is an attorney who has several case settlements for hundreds of thousands of dollars forecast to be received by the end of the year.
The president is interested in obtaining $500,000.
Use of funds:
$200,000 to pay off the mortgage on the farm which is at a 9% interest rate which he feels it’s too high.
$300,000 for working capital.
- Reopen Restaurant.
- Raising field crops.
- Hiring of employees.
The foundation will hire an executive director whose priority will be raising capital by means of donations, events…etc. The farm is licensed to produce hemp and is currently seeking contracts to start producing.
Thank you.
Michael Slabitcher
mslabitcher@slabitcher.com
The farm operates with the income it generates and does not rely on donations. The farm does not produce much from vegetable sales until the July to December period. During these months it generates $50,000 per month. The farm has a restaurant which plans to reopen on July of this year. The restaurant stopped operating 3 years ago because the chef and the manager left. The restaurant should gross at least $50,000 each month, year round. It used to make $50,000 per month when it was operating. Anticipated income from vegetables and industrial hemp this year is $400,000. The property is appraised for $955,000 with a $200,000 mortgage balance.
The above value is allocated as:
Restaurant $130,000
Farm $650,000
West House $55,000
Bed & Breakfast $120,000
The 2016 tax return for the foundation (has a 6 month extension for 2017) shows gross revenue of $33,531. The president has a 660 credit score and their annual income is $1,242,000. The total market value for real estate he owns is $1,600,000 with a mortgage balance of $30,000. Personal liabilities total $137,000. The president is an attorney who has several case settlements for hundreds of thousands of dollars forecast to be received by the end of the year.
The president is interested in obtaining $500,000.
Use of funds:
$200,000 to pay off the mortgage on the farm which is at a 9% interest rate which he feels it’s too high.
$300,000 for working capital.
- Reopen Restaurant.
- Raising field crops.
- Hiring of employees.
The foundation will hire an executive director whose priority will be raising capital by means of donations, events…etc. The farm is licensed to produce hemp and is currently seeking contracts to start producing.
Thank you.
Michael Slabitcher
mslabitcher@slabitcher.com
