Married couple looking to buy an Inn or puchase

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My husband and I have been trying to buy an Inn for well over 2 years. We have looked at many the problem is all the banks want so much money down. The most we can put down is around $20,000. Does anyone know of any lease to own Inn's? Does anyone know of any financing we might have missed? We are not picky on location. We own a home in North Carolina but our daughter is going to live in and pay the mortgage. Once it is paid off which is only in a few years she would be able to purchase it at reduced price.

We do have 2 children ages 17 and 14 that would relocate with us.

We have taken additional classes online and webinars. My husband has management experience, hotel experience, and prior military. We both were therapeutic foster parents for over 8 years but decided we wanted a change so have discontinued foster care. I was part owner of an optical business and a stay at home mom.

We would consider being Innkeepers if any are available.

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You all have posted a link to those looking to hire an innkeeper or innkeeping couple, and the title of this thread is married couple, but in it it says with two kids that would relocated with us.

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We just posted the links.  what they are is their issue...they will just weed through them.

TheBeachHouse's picture
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Just saw another contest.  Freedom House Bed and Breakfast in Maine.

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How do you guys find all these contests? Do you know of anyone who has actually won?

 

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we have a google alert for Bed and Breakfast so they come up on that - would be worth you setting one up its free

Morticia's picture
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jamesandjill wrote:

How do you guys find all these contests? Do you know of anyone who has actually won?

 

We're already in the biz. A lot of these things show up in our Facebook feeds. They are publicized in the newspapers around where they are located. You might also try a google search: 'B&B essay contest'. A lot of places show up. (I just tried that search.)

Yes, if there are enough entries someone wins.

 

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jamesandjill wrote:

How do you guys find all these contests? Do you know of anyone who has actually won?

 

 

I saw one in the local paper.

I entered one years ago and did not win.   Couldn't hurt!

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Freedom House B&B and their Contest

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Morticia's picture
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I remember seeing this one. Love the building!

Morticia's picture
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The PAII newsletter just came out. They have listings in there for innkeeping and management positions. It would give you an idea what it's like without having to buy.

Jobs listing

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Thank you we will definitely consider these.

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You may want to check here as well.

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  One of the listings is in North Carolina.  I think the second or third.  Doing something like this will give you a feel for whether you want to be an innkeeper or not.

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The owner of the Lowe House just passed away and the family is wanting to sell. It is a very nice B&B, modern built to be a B&B. The husband died soon after they built it and the wife ran it by herself for many years. She did not market well so they only had about a 10% occupancy rate. She just passed away about 2 months ago. The family does not want to run a B&B, so they are looking to sell it pretty quickly. 

We originally started to look at it before buying the Wildflower because the owners quarters were so nice, room enough for a family. Honestly, it would be a hard way to go as you would have to basically start from scratch to get it marketable. However, this area is picking up pretty well. $20,000 might be enough to get in if you had another source of income for a little while. 

If you are seriously interested, let me know and I will see if I can get information about it. 

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Christopher and Shelley Smith, Innkeepers
The Wildflower Bed & Breakfast, Mountain View, AR

 

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Can you email more information, please? But use this email address: jillandjimf@yahoo.com

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We looked at several inn opportunities years (over 20 years) ago and just didn't have the money to make them work.   We tried for owner financing and for other fancy ways of buying without the money.   Couldn't make it work.

So we got jobs, bought a house and forgot that dream.   Life happened and 20 years went by.

On a walk one day and decided to go into an "open house."   I told my DH, "I've always wanted to see the inside of that house."   A week later, he approaches me with a spread sheet saying, "I think we can make this work."

A week later, our house of 17 years is on the market and our offer is accepted.   We needed the equity in our house in order to afford this much more expensive house.   But running the B&B along with the equity we had, has made it possible.

Moral of the story, maybe it isn't the right time yet. (We are in our late 50s.)

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TheBeachHouse wrote:

 

Moral of the story, maybe it isn't the right time yet. (We are in our late 50s.)

I could never have done this 20 years ago with kids popping in and out of the house as they graduated college.

Everything in its time.

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where I am 20K wouldn't even get you a deposit on a 1 bed flat - they want 50% downpayment or equity or both to even consider you -

However the most important thing is if you have a MASSIVE mortgage could you make the payments even if you secured it? probably not.

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Banks want more than 30% down because so many inns and B&Bs have gone into foreclosure and banks hate to lose money.  This business isn't for everyone and I've seen more than a dozen places within 45 minutes of me go into foreclosure in the past ten years.  So they are being very cautious about getting enough money down.  No bank is going to loan you the money you need to buy a successful place with $20K down.  We had over $250K so we had no problem.  But I have a family member who has been trying to sell their place for a couple years.  The people coming through don't have enough money to put down per the bank's requirement for the loan and the prospective buyers have asked them to do owner financing.  Most people who finally list want out and they aren't going to take a chance that someone coming along will go into default on the loan.  I'm sorry to say that unless you sell the house and have that money for a down payment, your chance of getting financing for any decent property is next to nil.  The same with someone wanting to lease you their property - that's a huge risk and again most innkeepers want the money out to move onto their new life.  Good luck, but I believe you're going to have to keep saving for several more years.

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MtnKeeper wrote:

  The people coming through don't have enough money to put down per the bank's requirement for the loan and the prospective buyers have asked them to do owner financing.  Most people who finally list want out and they aren't going to take a chance that someone coming along will go into default on the loan.

Note also that "owner financing" is a second mortgage, and is hence secondary to the bank.  That means that if a property goes into foreclosure, the bank gets all its money first, leaving any left over to the second.  AND what that really means is that the bank which controls the foreclosure sale has no incentive to sell the property for a dollar more than it is owed, so the second usually gets zero.

This happened to a friend, who went owner financed and lost $150K while bank lost $0.

This makes it very hard to get owner financing if you don't have an adequate down payment.

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MtnKeeper wrote:

Banks want more than 30% down because so many inns and B&Bs have gone into foreclosure and banks hate to lose money.  This business isn't for everyone and I've seen more than a dozen places within 45 minutes of me go into foreclosure in the past ten years.  So they are being very cautious about getting enough money down.  No bank is going to loan you the money you need to buy a successful place with $20K down.  We had over $250K so we had no problem.  But I have a family member who has been trying to sell their place for a couple years.  The people coming through don't have enough money to put down per the bank's requirement for the loan and the prospective buyers have asked them to do owner financing.  Most people who finally list want out and they aren't going to take a chance that someone coming along will go into default on the loan.  I'm sorry to say that unless you sell the house and have that money for a down payment, your chance of getting financing for any decent property is next to nil.  The same with someone wanting to lease you their property - that's a huge risk and again most innkeepers want the money out to move onto their new life.  Good luck, but I believe you're going to have to keep saving for several more years.

And I think people assume because someone "owns" a home that they have equity in the home. Being a home owner doesn't mean if a person sells it they will have some giant amount of money now to put toward buying an inn. In most cases it just means removing that debt and put it somewhere else.

When people approach us and say "we have a house to sell" it doesn't mean they have a hefty down payment. If you don't have money to buy something you can't buy it, financing is not the answer to becoming an innkeeper. We are for sale and so far 10 out of 10 are in the same dilemma. They are dreamers, and I understand that, dreaming is good. But banks don't care about dreams...

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Good point that they may not have equity in their house. I guess I assumed because it was almost paid off they could realize a nice down payment out of it.

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 Check your email address. I tried to contact you, but it came back undeliverable

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The Almost Home Inn and it's Essay Contest

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OnTheShore wrote:

The Almost Home Inn and it's Essay Contest

And there are several other active contests.  Find the ones that would work best for your life style and enter away.  No harm done as if they don't get the #s the $ will be returned. 

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Just saw a new contest.  The "Almost Home Inn" in Ogunquit Maine is having an essay contest to win the inn.   Go for it! 

(No link, my computer doesn't allow me to paste to this forum.)

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TheBeachHouse wrote:

Just saw a new contest.  The "Almost Home Inn" in Ogunquit Maine is having an essay contest to win the inn.   Go for it! 

(No link, my computer doesn't allow me to paste to this forum.)

Just voted the best seaside village  (or some such) so now's the time to get that contest out there!

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Morticia wrote:

TheBeachHouse wrote:

Just saw a new contest.  The "Almost Home Inn" in Ogunquit Maine is having an essay contest to win the inn.   Go for it! 

(No link, my computer doesn't allow me to paste to this forum.)

Just voted the best seaside village  (or some such) so now's the time to get that contest out there!

 

Looks like a nice house.  

I entered a contest like this years ago.  Maybe 35 years ago.   House in Maine.  It was written about in  Yankee Magazine.   That was a good way to spread the word.  

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Well we all know how that goes....JB can tell you all about it. Never got enough interest/ money to so  the contest Sad

Does this one have a minimum stated anywhere?

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EmptyNest wrote:

Well we all know how that goes....JB can tell you all about it. Never got enough interest/ money to so  the contest Sad

Does this one have a minimum stated anywhere? 

8000 entries

She will not even get 1/3 of that.

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   I would still encourage you to give it a try.  So it doesn't get enough people to write an essay…. your money is sent back to you.  If you win and there are 8,000 entries than the winner gets $20,000. I would check into the state of the place (like take a vacation and stay there but don't mention about the contest unless they bring it up.)  It will give you a feel for the place and if you want to live there.

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I hate to be the voice of doom and gloom, but having a budget of $20,000 is just not realistic. The best thing you can do if you really have the dream of owning a b&b is to take the next couple of years and really focus on how you can save more money. Take extra part time jobs, babysit, try to get a part time job at a b&b for not only money, but experience. 

Not only is there the expensive of buying the property, but there are so many other expenses as well, website, internet marketing, licenses, inspections, lodging directories. If you purchased a home to turn into a b&b the furniture and decorating will cost you nearly $20,00. 

What you might seriously consider is trying to find a b&b/inn that is looking for a couple to work/manage their property. Even that will be difficult because you don't have experience working in b&bs, but there definitely are some owners that would take a risk if they felt you had the right sensibilities for their property. 

Having a b&b sounds simple....but it's not. And it's not cheap.

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If your deposit is $20k then you can look at operating properties around $100k in selling price.

As you've probably found, those won't support your family.

Just to give you an example, and not to discourage any more than you already are, 10 years ago our deposit was 10x what you have and we were also turned away from many viable properties.

We sold our home to get the deposit. And we kept back $75k for first year operating expenses. So, yes, a $200+k deposit and an extra $75k still in the bank.

If you have been to classes, the money aspect must have been covered.

If you have the space in your present house why not list one bedroom on airbnb to get an idea what it's like raising a family with a business running in your home at the same time.

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And where pray tell can your find a property for $100K????????

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EmptyNest wrote:

And where pray tell can your find a property for $100K????????

That's as high as they can go with that deposit. I'm guessing there aren't any properties at that price. I know I could buy 2 houses for that in some out of the way locations but not sure you could make a go of it there!

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Another idea is to sell the home you own so you have the money for a down payment.

I'm sure you've already considered that, but that's how we did it.

 

 

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Also sorry to say, but if you can't afford to buy an inn then you can't buy an inn. 

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Sorry to say I doubt you will find an inn to lease. When a place is up for sale it is because owners want to sell and be done with the inn. No one wants to take a chance leasing and then wondering what will happen to their place and business.

You have to have a large down payment these days. No getting around it. If you are looking for a place to provide you adequate income to live off of, you will need a large place and there are no bargains in those size places. Banks will not finance you without$$$ up front

 

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Have you considered buying a large house and doing start-up. Some big old houses in Shinnston, WV. I have been hoping someone would open another B & B in town for  the last 18 years (I have 20 year anniversary in July).

Lots of good things happening in Shinnston.

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