Current Owner: An LLC with no income and a credit score below 500
Opportunity Zone: This investment is located in an Opportunity Zone, providing potential tax benefits.
Proposal
Pay off the Outstanding Taxes: Ensure the building is free from immediate financial liabilities.
Secure a Renovation Loan: Use the partners' creditworthiness to guarantee a $100,000 loan from a local bank.
Use of Funds
Renovations: Modernize the building to include state-of-the-art production facilities.
Marketing: Attract independent producers and media companies.
Operational Costs: Initial setup and running expenses.
Production Schedule
Demolition: Complete demolition of the building’s interior to prepare for renovations.
Temporary Use for Filming: Leverage the building’s state of disrepair as a filming location for movies, offsetting some renovation costs with production budgets from these films.
Renovation Start: Begin structural renovations and modernization.
Completion and Launch: Finish renovations and launch MediaMint as a fully operational media production hub.
Financial Projections
Initial Costs:
Taxes: $16,000
Renovations: $100,000
Total: $116,000
Revenue Streams:
Lease Income: Renting production spaces at competitive rates.
Equipment Rental: Offering professional-grade media equipment.
Membership Fees: Providing access to the media hub's facilities.