24 Sep Acquiring Minds: Buying a $7.3m Golf Course with No Money Down
Today’s guest didn’t find his business. His business found him. Kyle Holmes had been general manager of Quail Ridge Golf Club when the owners asked if he’d ever thought about buying it. He had, but as a dream. He was in his 30s with five kids and nowhere near the money to buy 275 acres in Grand Rapids’ most affluent suburb. That didn’t stop him. Kyle and the course superintendent bought Quail Ridge for $7.3 million with none of their own cash, using an SBA 504 loan, conventional financing, and a seller note. The key was the SBA loan’s 25-year amortization, which made the $7.3 million acquisition manageable for a business generating $500-700k in earnings. But there was a catch: the land alone was worth $10 million or more. Kyle and Tim needed the deal valued on the business, not the dirt, making the appraisal a nail-biting three-week wait. Here he is, Kyle Holmes, managing owner and general manager of Quail Ridge Golf Club.
