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 second only to restaurants. As such, if a borrower is under-capitalized or if the property is under-performing, many bankers may not dedicate the time necessary to understand the whole picture. Banks who portfolio their commercial loans may have limits on property types or industries, as …
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Prequalification for a Loan
The Prequalified Buyer™ evaluation and designation provides 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. A Prequalified Buyer™ designation identifies a person or persons as having submitted, the required proofs and documentation for verification and analysis; before …
What should I look for when shopping for the inn of my dreams?
Aspiring innkeepers should attend industry conferences and aspiring 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 by learning from the unpleasant experiences of others. …
How much do I need to have for a down payment to purchase an inn?
Buyers should have 30% of the project cost to cover the following: Down Payment – 10% to 25% Closing Costs – 3% to 6% Reserves – 6 Months Principal &Interest …
Are inns offered “For Sale by Owner” worth considering?
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 historical financial data and comparable sales. …
