Rod Stroope 6 months, 4 weeks ago
I found your discussion of the ROBS program excellent and very informative. Have you ever heard of someone successfully using ROBS to purchase an operating B&B or small inn??? The traditional recommendation being made by many in the hospitality industry is to use 401k funds as part of a loan to purchase the inn …. the upside of this is supposedly one is protected in that the Real Estate of the Inn is the collateral and is the only asset the loan provider can go after leaving the 401k funds still belonging to the individual(s) Whereas you point out that with the ROBS if their is a fail then all funds that are in stock of corporation are lost.
I am interested in understanding if you think using the ROBS program is a good application to the hospitality industry.
Thank you1 Reply
Dock David TreeceModerator6 months, 4 weeks ago
Thank you for your question. To answer your initial question – yes, we have heard of people using ROBS to start or purchase a business in the hospitality industry. A ROBS isn’t the only way to accomplish this, but it’s usually one potential avenue. If you don’t have enough money in a 401(k) to set up a ROBS, you can also usually use a ROBS as a down payment on an SBA loan that may be able to help you finance a higher purchase price.
Guidant is our recommended ROBS provider, so our suggestion would be to contact them directly to set up a one-on-one consultation. They can provide much better insight on whether a ROBS will work for the project you have in mind. They can also help you set everything up properly and arrange outside financing if you need an SBA loan or other assistance.
Hope this helps. Best of luck!
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