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Question: Will you invest in Sunset House Hospice for a note for 10 Years @10%?

Sunset House Hospice; Inc., is a new corporation committed to providing the highest quality hospice and palliative care services in York, County. Owned by Ms. Vicky G. Russell, RN and the Reverend Andrew W. Russell, BCC, the Sixteen (16) bed inpatient state of the art facility, will provide the highest quality, dignified inpatient, interdisciplinary “Hospice” and “Respite” care services to patient’s and family members entrusted to our care.
Sunset House Hospice; Inc., will serve a highly targeted niche within York County and will be he only direct care inpatient facilities in the county.

1. We are looking for a $650,000.00 investment. We are willing to look at all Options. We prefer a Note payable in 7 to 10 years at around 10% APR.

2. The $650,000.00 will be used for the 10% down payment a small business loan from Wachovia Bank that is guaranteed by the Small Business administration and initial legal fees.

3. Will consider other Options.

Answer: This appears to me to be a loosing proposition. Only 16 beds. Cost of facility is $6,500,000. Operating costs will be in excess of $150,000 a year, probably much more. Each bed will have to generate $100,000 a year just to about break even.

Russell Investments’ 2010 Global Survey on Alternative Investing – Key insights