SBDC Helps 3 Entrepreneurs Tell Their Story

Three men who love the water and outdoor life had an opportunity to purchase waterfront commercial property on the Chicahominy River in Charles City County, Virginia. David Resnick, Alton Williams and Charles Brown, veterans who had successful careers in other businesses, wanted to go into their retirement years spending time building their own dream community. All three had professional experiences to contribute towards the management, administration and personal energy to upgrade an existing motel and marina.

They were referred to the Crater SBDC from several area bankers who were interested in the project but needed the story down on paper. Diane Howerton worked closely with David Resnick, managing partner to analyze exactly what was needed and what the expected return would be.

The current owner was selling the business because of a lack of capital and personal energy to upgrade the facility. The new owners, Resnick, Williams and Brown had several advantages: business experience, knowledge of marina’s, capital and sharp buying. They had already purchased 60 boat docs for a very low rate that were being stored at Jordan Point until they acquired the property and the new doc complete. Also, the appraisal came in higher than the sales price. With the motel unit in good condition renting close to a 100% occupancy rate, the business was already generating some cash. What made the projections really strong was that boat slip payments are due in advance: June and January. These two factors helped show that the business site could cash flow while the improvements were being made.

Mr. Resnick began working with Diane in February and the financing was in place in less than two months for $1,100,000. Upon asking how the SBDC contributed, Mr. Resnick said, "Working with Ms. Howerton was a reality check. It helped us focus on what we wanted to do and how to get there."