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. …
FAQs of Aspiring Innkeepers
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. …
How do I determine a fair offering price for the inn/s I am considering?
A knowledgeable “B&B Industry Specialist Realtor” should be engaged very early on to consult on matters of value. Realtors who have been innkeepers themselves and are intimately familiar with their market area provide time-saving expertise. They can expertly evaluate the viability of the business and support your offer with their own analysis of comparable sales data, the inn’s Financial Performance, Real Estate Improvements, Good Will, and Furniture and Fixtures & Equipment (FF&E). “A buyer or seller of a business who chooses to represent himself/herself has a fool for a client”. …
How can I know if I qualify for a loan to purchase an inn?
A prequalification involves the review of a loan application and supporting documentation and is comprised of data and documentation for the buyer/s and quite often a property that is of particular interest. The buyer/s must have adequate capital, credit, and credentials, and the property in question (PIQ) must be able to support the desired level of debt; the Prequalification process is most useful to evaluate the buyer/s price range before the search begins of course but may be employed to evaluate the feasibility of an acquisition. …
