Co op or not
I am entertaining the thought of co-op for equine barn to board horses, have lessons, share funds to develop better, care, facility updates, equine clinics and entertainment.
I have a property I am leasing at $4000 a month, $2000 ins, $3000 costs monthly, and property value 1.3 mil. I want to own before owner tries to sell to housing developer. Currently receive 5000 in board fees, 1400 in lesson fees, paying remainder out of pocket. Have others interested in barn.
Hi Cindy! Thanks for the question. What a cool idea! I think you should call an accountant and an attorney to get feedback and hash out the specifics. I would also encourage you to first find someone in your area who has created a co-op type business, if possible so you can learn about any state regs and other things you might need to know.
As far as buying the property, you want to make sure income can exceed all expenses, find a vacancy rate for boarding and include it in your projections. Right now this is costing you money out-of-pocket and you don’t have the mortgage debt, property taxes, and other business expenses, which will add to it, so you need to make sure your idea is financially feasible.
Hope this helps!