Using Retirement Assets to Purchase a Bed & Breakfast or Country Inn
Few investors or entrepreneurs realize that they have the ability to self-direct their own retirement assets. Most believe the only two options are to borrow or withdraw from their account/s if they wish to invest in real estate or purchase/start up a new business. The downsides are… Borrowing from the account/s would require repayment of the […]
Determine Market Value Before Marketing Your B&B or Country Inn
All Bed & Breakfasts/Inns are unique by design; in fact, it is that special and unique quality that distinguishes one Bed & Breakfast/Inn from the next. Innkeepers invest their creative energy and capital over time to create a welcoming and hospitable environment that is unique to their community and valued guests. While the charm and […]
Tips for Innkeepers Preparing for a Sale of a Bed & Breakfast or Inn
Conventional wisdom among B&B/Inn consultants is that an innkeeper should have an exit strategy the day they purchase the inn, in fact, some contend it should be part of the initial business plan. Since it is my job to work with a buyer from an aspiring innkeeper to innkeeper, I thought it might be useful […]
Six Myths About Inn Financing
By Rick Newman, Founder of Commercial Capital Network 1. Any bank will finance the purchase of an Inn or Bed & Breakfast. THIS IS A MYTH – Many banks view the hospitality industry as a high-risk property type of business, second only to restaurants. As such, if a borrower is under-capitalized or if the property […]
Reporting Agencies and Credit Reports
Note: This material is being provided for general information purposes. This overview is intended to alert the reader to the importance of managing his/her credit. General guidelines, material, and other information are being provided as a courtesy. No representations or warranties are made as to the accuracy or processes covered herein. The Credit Tier Examples […]
Viable Vs. Lifestyle Inns
Commercial real estate financings are generally presumed to be serviced by the income from commercial property ONLY, as such a Debt Service Coverage Ratio (DSCR) is used to underwrite the loan. The DSCR or debt service coverage ratio is the relationship of a property’s annual net operating income (NOI) to its annual mortgage debt service […]
Financing a B&B / Country Inn
All Bed & Breakfasts/Inns are unique by design. In fact, it is that unique quality that separates one Bed & Breakfast/Inn from the next. Innkeepers invest their energy and capital over time to create a welcoming and hospitable environment that is special to them, their community and valued guests who appreciate the inn and the […]
Country Inn / Bed & Breakfast Loan Prequalification Vs. Preapproval
A Preapproval differs from Prequalification in commercial lending, in that the “Preapproval” is issued after a preliminary underwriting determination has been made. The buyer’s qualifications, and the data from the commercial property are combined to assess the risks versus the merits of the loan application. Financial records on the business/property being acquired will be needed […]
Country Inn / Bed & Breakfast Loan Prequalification Check List
List of items required to begin the Buyer Prequalification Certification Process: Commercial Loan Application Borrower’s Financial Statement/s Verifiable Proof of Assets to be applied to down payment and reserves e. Checking Account/s Savings and Investment Statements 401k/IRA Statement/s Three (3) Years Borrower’s Personal Tax Returns Resumes for all Principals Borrower’s credit report/s with credit scores […]
Country Inn / Bed & Breakfast Loan Prequalification
The Prequalified Buyer™ evaluation and designation provides Aspiring Innkeepers a credible way to quantify how much purchasing power they really have as it relates to identifying hospitality properties that best fit their financial qualifications and professional/personal objectives. A Prequalified Buyer™ designation identifies a person or persons as having submitted, the required proofs and documentation for […]
Credit Report/s & Reporting Agencies
By: Richard K. Newman, Managing Partner of Commercial Capital Network Note: This material is being provided for general information purposes. This overview is intended to alert the reader to the importance of managing his/her credit. General guidelines, material, and other information are being provided as a courtesy. No representations or warranties are made as to […]
Financing a Bed & Breakfast/Inn
All Bed & Breakfasts/Inns are unique by design; in fact, it is that unique quality that separates one Bed & Breakfast/Inn from the next. Innkeepers invest their energy and capital over time to create a welcoming and hospitable environment that is special to them, their community and valued guests who appreciate the inn and the […]
Prequalified Buyers
The Prequalified Buyer designation was designed to provide Aspiring Innkeepers a credible way to quantify how much purchasing power they have as it relates to identifying hospitality properties that best fit their financial qualifications and professional/personal objectives. The prequalification process reviews a complete an application, personal identification such as driver’s license/s, passports& visas, financial statement/s, […]
Verified Financials™ Overview
CCN’s Verified Financials™ program is designed to provide Innkeepers and realtors a designation that can be used to instantly differentiate their hospitality property listing from other B&B listings on Industry Websites, Multiple Listing Services, and conventional advertising. CCN’s Verified FinancialsTM certification signifies that an independent evaluation of the inn’s business financials has been conducted and […]
Prequalified Buyer™ Overview
CCN’s Prequalified Buyer™ designation, was created to provide Aspiring Innkeepers a way to document how much purchasing power they really posses to assist them to identify hospitality properties that best fit their financial qualifications and investment objectives. The designation, certifies that a review has been conducted according to generally accepted commercial underwriting guidelines, by verifying the […]
