Inn Brokerage Blog
The importance of using a local lender well versed in hospitality…
Would you go to a cardiologist if you’re having problems with a swollen ankle? Or take your watch to be repaired by a seamstress?Then why would you go to a lender who doesn’t deal in the hospitality industry? A little dramatic, yeah, but you get my point! There are many reasons to speak with local lenders when
SOLD! Towne Motel in Camden, Maine
Congratulations to the buyers, Katja and Siobhan and sellers, Rick and Jane! The B&B Team, Inn Consultants and Brokers was proud to represent both parties (Rick Wolf represented the buyers, I represented the sellers). We wish them all the best in the next phase of their lives!
I’m often asked “How’s the B&B market doing?”……….
The commercial and residential real estate markets are two different animals. Commercial real estate relies on valuation based on the performance of the business while residential real estate relies on the performance of the market, or what the buyer is willing to pay and can afford to pay. We’ve heard for years now that the
New Listing! Wiscasset Motor Lodge in Wiscasset, Maine
Offered at $895,000, this is a financially viable business with plenty of room for potential. Visit my website for more details about this listing.
Pre-qualifying Commercial Buyers?
When we hear the question “have you pre-qualified your clients?” in a residential transaction it usually means that your buyer has been in touch with a lender, submitted their personal financial statement and received a “pre-qual” letter from the bank. This letter would state that based on the buyer’s financials and their job income, they
NEW PRICE! Victorian By The Sea in Lincolnville, Maine
Offered at $995,000 and reduced from $1,095,000. Visit my website for more details on this lovely inn!
New Listing near Acadia National Park! Clark Point Inn, Southwest Harbor, Maine
Clark Point Inn has 5 guest rooms, a desirable location and very nice harbor views! More details are on my website.
NEW listing in Portland, Maine! Inn on Carleton in the West End
Located in the desirable West End historic district of Portland, this inn offers a financially viable business, a beautiful outdoor living space, a stellar reputation and lovely interior guest and owner’s space. Offered at $1,575.000. Visit my website for more details.
New Listing! Financially viable, attached owner’s home, great in-town location in Camden, Maine!
The Towne Motel in Camden, Maine, offered at $1,395,000 and the financials support the price. Details are on my website.
Gross Income Should Not Include Lodging Sales Tax When Talking Value!
When our guests pay for their full stay, we include our local state sales tax. How this translates in accounting terms is that the cost of the room is revenue earned and the state lodging sales tax is a liability. The tax is not ours to keep, it’s ours to pay to the state each
P&L vs. the Corporate Tax Return: the Tax Return Is KING!
COUNTRY INNS BED AND BREAKFASTS HOTELS AND MOTELS COTTAGES AND CABINS the LODGING & HOSPITALITY BUSINESS… Each of these income producing lodging businesses is just that, a business. And let’s face it, when it comes time to prepare the business’s tax returns, we naturally try to deduct as many expenses as we legitimately can to reduce
Using your 401K toward a hospitality purchase?
Are you aware that under the right circumstances you can rollover your 401K into purchasing a new business, such as a bed and breakfast? Check out R.O.B.S. (rollovers as business startups) and Self Directed IRA’s via Guidant Financial. This could make the difference in finding just the right inn and using your cash wisely! Be
Buyers, do you Google research the inns you’re looking at?
One of the best ways a buyer can learn about the property they’re looking at is to Google the name of the inn and even the name of the innkeeper(s). Once you’ve focused on a property or two, set up Google Alerts for the inn’s name and innkeeper(s) names. Of course you should read reviews
DCR – Three of the most important letters regarding inn financing
DCR – Debt Coverage Ratio These three letters are one of the most important elements to understand when looking to finance a business (and let’s not forget that an inn IS a business). Simply, can the net operating income cover your debt as new owners? Because although many buyers ask if the sellers have a
Circumventing the Listing Agent…why??
It’s not unusual for a prospective inn buyer (or residential for that matter) to attempt to contact the seller of a listed property directly. Is it because the buyer thinks they’ll get a better deal if they go directly to the agent? It’s happened a couple times with prospective inn buyers who have found my
