Aspiring Innkeeper One-Day Comprehensive Workshop – Lambertville, NJ November 4, 2023-November 4, 2023 (8:30 AM-5:30 PM) The one-day comprehensive workshops include instruction, workbooks, lunch, and personalized consultation (to be scheduled for mutually agreed upon times, dates, and locations). This will be a fast-paced Saturday. We will cover the same material as in the full weekend seminar but […]
Future Innkeeper Weekend Seminar – Galena, IL November 18, 2023-November 19, 2023 () The weekend seminar is our premier and most in-depth future innkeeper program and allows for more face time and interaction with your instructors. The weekend seminar package includes group instruction, workbooks, personalized follow-up consultation, meals, and breaks. There is an optional wine and cheese […]
Aspiring Innkeeper One Day Virtual Workshop December 9, 2023-December 9, 2023 (10:00 AM-5:00 PM) The Virtual Seminar is being offered as an alternative to our in-person aspiring Innkeeper sessions. This session covers much of the same material as the One Day Comprehensive Seminar and will help to affirm attendees’ interest in a possible Inn purchase. […]
Aspiring Innkeeper One Day Virtual Workshop October 14, 2023-October 14, 2023 (10:00 AM-5:00 PM) The Virtual Seminar is being offered as an alternative to our in-person aspiring Innkeeper sessions. This session covers much of the same material as the One Day Comprehensive Seminar and will help to affirm attendees’ interest in a possible Inn purchase. […]
With interest rates being so low in recent years, it is easy to forget that mortgage rates fluctuate somewhat regularly. The following chart tracks this data to remind us of past cycles and that even when rates were “High” we still did business….. Best!
“Sam and I were one of the lucky ones. We found Rick right at the start and before hiring any of our other professionals of the great team that helped us buy Lookout Point Lakeside Inn. While away for Thanksgiving weekend 2016, we huddled in our lower Manhattan hotel room and had our first phone […]
“Owning our own business seemed somewhat far-fetched until 2020 turned the world upside down; so we did what any sensible adult would do. In December of that year, we left our jobs, sold our home (and most of its contents) and spent the next 8 months touring the USA in our 5th wheel RV. It […]
“Unquestionably, working with Rick Newman was the single best decision we made as we were pursuing our dream of owning a B&B. Rick helped us through the complex financing process in today’s challenging environment and was always there for us through the ups and downs. We felt like we were his only client, and he was […]
ANSWER: Aspiring innkeepers should attend industry conferences and aspiring innkeeper seminars to get a feel for the kind of operation that would best suit their financial and lifestyle objectives. This is fundamental to the beginning of a well-planned investment and will save time, capital, and energy. Do all that is possible to enjoy the journey […]
ANSWER: Aspiring innkeeper’s needs vary based on many factors. Moving from a single-family home into an inn may be challenging depending on the nature of the space allocated to the innkeeper and their family. Aspiring Innkeepers are getting younger, so children may be a factor in the equation. Some inns have separate residences for the […]
ANSWER: We have all heard this before. As it related to financing, hospitality properties may represent a challenge depending on the historical cash flow. In certain states, 2020 and 2021 may have seen closures due to Covid-19, so gross revenues during this period may have been compromised to some extent. Most banks understand this and […]
ANSWER: They could be, but it is difficult for a seller to impartially establish the value of the business and its assets without the benefit of a valuation undertaken by an industry specialist realtor or an appraiser. The asking price should be backed up with three (3) years of historical financial data and comparable sales.
ANSWER: A pre-qualification encompasses reviewing the loan application and supporting documentation. The review includes data and documentation for the buyer/s and may include a particular property of interest. The buyer/s must have adequate capital, credit, and professional credentials, and the “property in question” (PIQ) must be able to support the desired level of debt. The […]
ANSWER: The Pre-qualification process establishes a range in purchasing power a buyer/s has as it relates to identifying hospitality properties that best fit their financial qualifications and professional/personal objectives. A Pre-Qualified Buyer identifies a person or persons as having submitted, the required proofs and documentation for verification and analysis; prior to identifying or contracting to […]
ANSWER: A Pre-approval differs from Pre-qualification in commercial lending in that the “Pre-approval” or Term Sheet/Letter of Interest 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. Ratio (DSCR) will comply […]
ANSWER: It is difficult to know until all financial documentation has been provided by the seller. A knowledgeable “B&B Industry Specialist Consultant/Realtor” should be consulted on matters of value. These professionals are intimately familiar with the industry and can provide time-saving advice on the viability of the business and the value of its assets. It […]
Depending on the financial history of the B&B/Inn, buyers should have 30% to 40% of the property cost to cover the following: Down Payment – 15% to 25% Closing Costs – 3% to 6% Reserves – 6 to 12 Months Principal & Interest
ANSWER: Yes, it can be used, particularly when the property has been underperforming for any number of reasons; in fact, some sellers may find it attractive to offer a seller-held second mortgage to defer some portion of a gain from the sale of the inn. If the property is free from debt, the owner may […]
How long does it take to process and close a transaction once I/we have identified a hospitality property?
ANSWER: After the contract has been negotiated and accepted, the inspections and mortgage contingency period will begin. Generally speaking, 45 days is established to obtain a mortgage commitment. Due diligence also begins in earnest with the ordering of inspections, title insurance, environmental, and survey (if needed). Once received, the mortgage processors review the title, appraisal, […]