Obtaining Valuations Prior to Marketing a B&B/Inn

All Bed & Breakfasts/Inns are unique by design; in fact, it is that special and unique quality that distinguishes one Bed & Breakfast/Inn from the next.  Innkeepers invest their creative energy and capital over time to create a welcoming and hospitable environment that is unique to their community and valued guests. While the charm and ambiance of an inn add to a patron’s experience, such intangibles have only an indirect effect on the actual value.  So, how can an innkeeper determine a realistic, fact based asking price before marketing their inn for sale?

A knowledgeable “B&B Industry Specialist Realtor” should be engaged very early on to consult on matters of value and how best to prepare the property itself and prepare financial data prior to offering the inn for sale.  A good number of these Realtors have been innkeepers themselves, and are intimately familiar with their market area.  They can expertly support the initial asking price with their own analysis of the inn’s Financial Performance, Real Estate Improvements, Good Will, and Furniture, Fixtures & Equipment (FF&E).  I cannot overstate how important it is for an innkeeper to accurately determine the market value of the business prior to making the inn available in the marketplace.  In my view, arbitrarily assigning a value to a business and its assets based on what someone feels it is worth is imprecise and cannot be a successful approach, knowing that an appraiser will eventually establish a value of the business and its assets.  The innkeeper or their representatives must be able to defend the asking price with tax returns to document the business’s performance/viability over time and other documents to value its business assets.
 
Where the rubber meets the road:  Ultimately, a “Bank/Lender Approved Appraiser” will be selected by the lender to establish the value of the business and its assets. In most cases, the “Commercial Value” of a hospitality property will be largely determined by examining comparable sales and financial data for actual closed sales of “Comparable Properties” in the past two years.  The bank’s appraiser will make adjustments to account for location, physical amenities, cash flow and so on; but the final and most important determinate of value is the inn’s historical ability to generate income; this value will be referred to as its value as a “Going Concern” or its commercial value. 

What happens if the appraised value is determined to be less than the contract sale price?  Answer:  The appraised value will be used to determine the actual loan-to-value, rather than the contract price.  When a property’s value as determined by the bank’s appraiser to be less than the contract price, the parties to the contract may decide to re-negotiate the sales price and modify the contract.  One can imagine the anxiety the parties and their representative’s feel when this happens.  The chances of this occurring are significantly reduced with good preparation and due diligence.

All Rights Reserved © 2004 – 2013 Richard K. Newman

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This article was written and submitted by:

Rick Newman is the founder and managing partner of Commercial Capital Network, (CCN). Rick maintains relationships with leading hospitality affiliate organizations and industry specialists, and is well known for consulting with Innkeepers, to provide funding for re-organization or to Aspiring Innkeepers acquire the "Inn of their Dreams".  Rick’s relationship with the bed & breakfast industry is promoted and maintained through his website www.innfinanciang.com www.innfinancing.com/, [edit: fixed link: swirt], which offers commercial financing and consulting services to the hospitality industry.

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muirford's picture
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Rick - or whoever is writing these posts for Rick - the link in your bio field for Rick's website is spelled incorrectly - I'm sure it should be 'financing'.  You should fix that.  It won't help your business because no one can get to your website, and it looks unprofessional (at least to this schoolteacher's daughter).

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Thank you for drawing my attention to the spelling error.  I will advise my my printer of 20 years that his work is unprofessional. I must be as well because I did not catch the mistake.  

I wonder if you took the time to read the testimonials on my website prior to posting your comments.  Had you done so, you would have realized that the service I have provided my many, many clients over many years is well appreciated, and I rather doubt they would agree with your judgement that I am unprofessional simply because of a spelling error. 

I would judge that you have too much time on your hands and self medicate your boredom by spending all day playing in social media. If you were really trying to be helpful in pointing out the error, you could have sent me an e-mail.  

I would be interested to see how you handle negative comments on TripAdvisor, I find that people who think they are smarter than everybody else are generally not well liked and should not be in businesses so reliant on serving guests.....

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RickNewman wrote:

Thank you for drawing my attention to the spelling error.  I will advise my my printer of 20 years that his work is unprofessional. I must be as well because I did not catch the mistake.  

I wonder if you took the time to read the testimonials on my website prior to posting your comments.  Had you done so, you would have realized that the service I have provided my many, many clients over many years is well appreciated, and I rather doubt they would agree with your judgement that I am unprofessional simply because of a spelling error. 

I would judge that you have too much time on your hands and self medicate your boredom by spending all day playing in social media. If you were really trying to be helpful in pointing out the error, you could have sent me an e-mail.  

I would be interested to see how you handle negative comments on TripAdvisor, I find that people who think they are smarter than everybody else are generally not well liked and should not be in businesses so reliant on serving guests.....

Wow true colors shining through...

Actually Rick Newman the error is in your HYPERLINK. Kind of defeats the purpose of posting all of this with an invalid link. Doesn't it? But your reply speaks volumes, so thank you for coming back and addressing the problem.

Madeleine's picture
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Wowzer. Someone tries to help you by pointing out no one can get to your website to see all the wonderful things written about you and you jump down their throat. Hello. Not the way to make friends and influence the people whose business you are trying to drum up.

BTW, how I respond to bad TA reviews, and by golly I get them because no one is perfect, I take the time to look at what the person is saying and why they felt the way they did and check to see if there is something I can improve. If they're just a jerk, I let them hang themselves with their petty remarks and I take the high road in my mgmt response.

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RickNewman wrote:

Thank you for drawing my attention to the spelling error.  I will advise my my printer of 20 years that his work is unprofessional. I must be as well because I did not catch the mistake.  

I wonder if you took the time to read the testimonials on my website prior to posting your comments.  Had you done so, you would have realized that the service I have provided my many, many clients over many years is well appreciated, and I rather doubt they would agree with your judgement that I am unprofessional simply because of a spelling error. 

I would judge that you have too much time on your hands and self medicate your boredom by spending all day playing in social media. If you were really trying to be helpful in pointing out the error, you could have sent me an e-mail.  

I would be interested to see how you handle negative comments on TripAdvisor, I find that people who think they are smarter than everybody else are generally not well liked and should not be in businesses so reliant on serving guests.....

Well, you're welcome, Rick.  I actually had respect for some of the work  you do, but you have managed to destroy all of that with your snotty, disparaging post in which you make numerous assumptions and accusations, all of which are in appropriate and in error.  

As a founding member of this forum, I don't have so much time on my hands - as you can see, it has taken me some time to see this response - but I believe that having bad links on this forum doesn't help anybody, especially YOU.  In one post, I let it go, but since you posted a second time with the same boilerplate with the same error, I though it would only be to YOUR benefit if it was fixed.

Instead, it only served to show your true colors.  Thanks for playing.

Madeleine's picture
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Oddly, the link is still incorrect.

Breakfast Diva's picture
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Wow! No one was calling YOU unprofessional, just a link you had posted. Actually, I have sent many people to your sight and to you personally. I think you have underestimated the power of this forum, because you've now shown that YOU are unprofessional. It's probably a good thing that you aren't and have never been an innkeeper because you don't have skin thick enough to take on the difficult task that you so easily disparage here.

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RickNewman wrote:

Thank you for drawing my attention to the spelling error.  I will advise my my printer of 20 years that his work is unprofessional. I must be as well because I did not catch the mistake.  

I wonder if you took the time to read the testimonials on my website prior to posting your comments.  Had you done so, you would have realized that the service I have provided my many, many clients over many years is well appreciated, and I rather doubt they would agree with your judgement that I am unprofessional simply because of a spelling error. 

I would judge that you have too much time on your hands and self medicate your boredom by spending all day playing in social media. If you were really trying to be helpful in pointing out the error, you could have sent me an e-mail.  

I would be interested to see how you handle negative comments on TripAdvisor, I find that people who think they are smarter than everybody else are generally not well liked and should not be in businesses so reliant on serving guests.....

Mr. Newman, if your 'printer of 20 years' has misspelled your website all these years without you catching the error this says even more about your lack of being a business professional. 

The poster was trying to do you a favor and instead of coming here humbly with a note of gratitude and a correction, you came here to pounce on their effort and show the world just the arrogant being you really are.  Please take note that the internet is forever.  Your comments will be here and will be shown with searches pertaining to your name and business forever.

I suggest you take special note to the last paragraph of your post above and then take a look in the mirror, you were making assumptions about the poster, but we are now crystal CLEAR about YOUR lack of professionalism.   

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RickNewman wrote:

Thank you for drawing my attention to the spelling error.  I will advise my my printer of 20 years that his work is unprofessional. I must be as well because I did not catch the mistake.  

I wonder if you took the time to read the testimonials on my website prior to posting your comments.  Had you done so, you would have realized that the service I have provided my many, many clients over many years is well appreciated, and I rather doubt they would agree with your judgement that I am unprofessional simply because of a spelling error. 

I would judge that you have too much time on your hands and self medicate your boredom by spending all day playing in social media. If you were really trying to be helpful in pointing out the error, you could have sent me an e-mail.  

I would be interested to see how you handle negative comments on TripAdvisor, I find that people who think they are smarter than everybody else are generally not well liked and should not be in businesses so reliant on serving guests.....

Wow I have not had time to check the forum recently, but this immature response to advice makes me sure never to use this vendor....

Riki

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RickNewman wrote:

Thank you for drawing my attention to the spelling error.  I will advise my my printer of 20 years that his work is unprofessional. I must be as well because I did not catch the mistake.  

I wonder if you took the time to read the testimonials on my website prior to posting your comments.  Had you done so, you would have realized that the service I have provided my many, many clients over many years is well appreciated, and I rather doubt they would agree with your judgement that I am unprofessional simply because of a spelling error. 

I would judge that you have too much time on your hands and self medicate your boredom by spending all day playing in social media. If you were really trying to be helpful in pointing out the error, you could have sent me an e-mail.  

I would be interested to see how you handle negative comments on TripAdvisor, I find that people who think they are smarter than everybody else are generally not well liked and should not be in businesses so reliant on serving guests.....

Thank you for drawing attention to your MOST unprofessional response.  Had you read posts on this Forum, you would have known how we try to help each other be the best we CAN be. OH! Did you EVER step in the doo-doo! Right up to the top of your pointy head. We do not take kindly to those that disparage innmates who are offering help.

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I have been mulling over the comment you made regarding being a "Founding Member"... what ever that means to you.  To me, a founding member takes pride in welcoming the participation and contributions of others and would therefore extend the "hand of Hospitality" to new members and participants.  

I learned of this website through a senior Paii member who was very complimentary of the sites contribution. I felt the group would appreciate hearing from someone who is and has been intimately involved with the industry for quite a while in a professional capacity on issues that impact both innkeepers and aspiring innkeepers.

I posted two articles addressing issues I see as both pressing for sellers and buyers and one which further introduced a concept I have written about for 7 or 8 years.  I was shocked to say the least when I read your comment on a spelling error as indication I am un-professional, without even mentioning the content of the article.  Knowing now that you are a "Founding Member"as you call yourself, I am even more disturbed with the viability/credibility of the this forum.  

If you are a participant in the hospitality industry, and you greet a new member in the way you did and your associates have... what can people expect?

I would offer for consideration, that you a "Founding Member", should have sent me a private e-mail noting the spelling error you made such a BIG deal about.  You could have used the opportunity to welcome me to the forum; we could have developed a long lasting friendship.  I have NEVER had an altercation with someone in the industry; I would have been pleased to have promoted your site and everything would have been as you say... professional.  In contrast to this "Hospitable Scenario", you insulted me and I gather have solicited your friends to join the social media pile on.

One other person mentioned "The power of the site" in their comments..., I would suggest that if the attitude and conduct toward others is condoned by the owner of this site and tolerated by its members/participants, it will not survive as credible resource for information and communication.

This is my last word on the issue, I could have easily chosen to send an email to all my clients with a link to this absurd set of communications but chose not to.  You are most welcome, to go onto my website and note the many testimonials from people who would side with me just as your friends have supported your position.  My reputation is solid and I will protect it at ALL costs...  Social media and forums can be a good thing, but we all know the ugly side of it as well.

Please have the good taste to direct future correspondence to my e-mail and if you are so well connected, please have both articles expunged from the site. 

Most Sincerely,

Rick Newman

P.S. I never did find a way to edit the link to my website...

 

 

Madeleine's picture
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A big wow is all I can say. You do realize your initial response contained a veiled threat of TripAdvisor exposure, right? Otherwise why bring up TA when the conversation had nothing to do with online reviews?

Because you have no idea who we are you also don't know how many of us are 'senior PAII members'. (Quite a few.) The reason most of us post here anonymously is because this IS an open forum, unlike PAII where you need to be a member to utilize the forum. We have guest issues we discuss, as well as financing and other topics and we'd prefer to not announce to the world what those issues are as we get them solved.

You came here as yourself. Before anyone had a chance to welcome you one member pointed out that there was a spelling mistake in your link. Before anyone knew if you were a 'real' person or a spammer that member chose to point out the spelling error. If you were a spammer no one wanted to take the chance of handing over their real email address.

That same member did not need to get friends involved. Your blatant attack on that member brought about the commentary. All of which was pretty focused on letting you know what your error was. (Attacking instead of thanking someone for highlighting a truly rookie mistake.) Before you sling any other mud take the time to understand you came into a very active arena. We deal daily with spammers and scammers and we take a moment to vet the posters who come here, without introduction, and start touting their wares.

Did you join PAII and immediately go to that forum and start the sell or did you introduce yourself first, maybe make a few relevant comments, etc before going in for the sell? I'm going to guess you played the game correctly there and chose to ignore the same niceties here.

You must now by now that no forum takes kindly to being hit with the sell before the introduction. That is plain old internet etiquette.

If you can't figure out how to change the link, contact the forum owner/moderator, Swirt.

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Thanks for your note.  

For the record, I did not post the articles to sell my services.  Much of what I do for the industry I do for the industry.  My family were in the industry for 30 years in PA and NJ.  I know the business well I think and my customers attest to this in their testimonials.  I care what they say about me because they know me.  

The article on valuations was written to address real issues I deal with every day between buyers and sellers, while the article on using retirement assets continues to be very relevant to hundreds if not thousands of middle age to recently retired people who wish to enter the hospitality sector.  The posts by your members on the latter offer investment opinions in my view.  In my experience, people have experts i.e. attorneys, accounts and financial advisers they consult with before they invest in a business.  If the investor makes an informed decision having the benefit of professional advise and due diligence, who can judge or criticize their individual decision.  Posts like these are opinions of members who may not possess a shred of standing in the areas of investments, financial planning or accounting. 

With all respect, I am not interested in participating further in any way with this forum as I feel that anonymous posts are fundamentally troublesome to me as there is virtually no accountability and the potential is great for abuse.  So much of what I read are opinions offered by non-expert participants.  The reader of the opinion cannot look at the author to validate their expertise and or motives and the writer is insulated from responsibility while the business or person being discussed may be damaged.  

I would prefer at this point if you remove my articles and the attachments.  

 

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RickNewman wrote:

Thanks for your note.  

For the record, I did not post the articles to sell my services.  Much of what I do for the industry I do for the industry.  My family were in the industry for 30 years in PA and NJ.  I know the business well I think and my customers attest to this in their testimonials.  I care what they say about me because they know me.  

The article on valuations was written to address real issues I deal with every day between buyers and sellers, while the article on using retirement assets continues to be very relevant to hundreds if not thousands of middle age to recently retired people who wish to enter the hospitality sector.  The posts by your members on the latter offer investment opinions in my view.  In my experience, people have experts i.e. attorneys, accounts and financial advisers they consult with before they invest in a business.  If the investor makes an informed decision having the benefit of professional advise and due diligence, who can judge or criticize their individual decision.  Posts like these are opinions of members who may not possess a shred of standing in the areas of investments, financial planning or accounting. 

With all respect, I am not interested in participating further in any way with this forum as I feel that anonymous posts are fundamentally troublesome to me as there is virtually no accountability and the potential is great for abuse.  So much of what I read are opinions offered by non-expert participants.  The reader of the opinion cannot look at the author to validate their expertise and or motives and the writer is insulated from responsibility while the business or person being discussed may be damaged.  

I would prefer at this point if you remove my articles and the attachments.  

 

Have you ever heard the saying "You are only as strong as your weakest link?" Consider that in light of the invalid hyperlink.

It is unfortunate that the internet is indeed forever, as the saying goes. There are hundreds of members on this forum who did not say a word, and didn't pile up on you. Many here are even presenters at PAII Conferences. We do not need to prove "expertise" to you.

We're actually glad you stopped by. As mentioned we have too many who do not abide by the rules of this forum, which is to step into the water gently, not canon ball like you did. This is why there was not a gentle hug upon your arrival. We would not have even really noticed your arrival if you used the stairs and waded into the water.

No one has blackened your credibility but you. We only pointed out a MAJOR flaw in your schpeal, an invalid link and you threw a tantrum at the person who pointed it out.   All the best in your future endeavors. 

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None of the commenters here can remove your posts, you have to contact the site owner. If you use the search box in the upper right you will find his user info, enter 'swirt' as the search term. Email him and explain the situation.

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Yes, it was as I figured yesterday...your reaction on this post (spelling mistake correction) was really based on your being upset about the comments made on your previous resource post suggesting that people use their 401k/retirement monies for purchasing an inn. " The posts by your members on the latter offer investment opinions in my view.  In my experience, people have experts i.e. attorneys, accounts and financial advisers they consult with before they invest in a business.  If the investor makes an informed decision having the benefit of professional advise and due diligence, who can judge or criticize their individual decision.  Posts like these are opinions of members who may not possess a shred of standing in the areas of investments, financial planning or accounting."

I hope you do admit using your life's retirement accounts to purchase an inn that can fail is very controversial. As far as the article you posted here goes, there is a lot of good information in it.

Here's my problem Rick. Instead of offering even the slightest bit of humility on your part, you continue to slam the innkeepers here. I can assure you that all who have written responses to you on this post are VERY seasoned innkeepers, active in the industry and there are at least 3 that run inspiring innkeeper workshops/seminars/programs. "So much of what I read are opinions offered by non-expert participants". You could not be more wrong.

We don't hide in anonymity here. The active members know who we all are. Unlike other forums, we are able to discuss real problems, real solutions and not be afraid to speak on an open forum. I would suggest Rick, that you lick your wounds, stick around, participate here and get some 'real' feedback that others might not be able to say out in the open. Yes, it's a humbling experience...take it from someone (me) who has had a slapdown or two here. blush It will be a certain way to gain respect from experts in the industry.

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Will you honor my request to remove my articles and attachments?

Joey Camb's picture
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It is not for us to remove your article or comments but I am sure Swirt will asap!

swirt's picture
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I've already emailed RickNewman about this, so this is just for clarification for everyone else.

A forum takes on its own life, and that life comes from the people who contribute.  Nothing is more annoying to people providing that life than to put time and energy into responses only to have them deleted because the original poster decided they wanted to go back in time and undo what they have done.

With this in mind I very rarely delete threads or contributions.  I have a statement in the terms of use specific to copyright and ownership. http://www.innspiring.com/legal  that prevents me from having undo other peoples' contributions just because the original poster has a change of mind.

I value the contributions of the members of this forum and I will not discard those without a really good reason.

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Wow, I am an aspiring here and read the forum regularly, though I don't post often.  I'm glad I saw this thread before the original post and reply were removed.  I take great offense at your disparaging remarks toward the good, hard working and dedicated people on this forum, RickNewman, and I agree that it didn't take long for you to show your true colors.  I'm thankful that I've been forewarned to avoid doing business with someone so unprofessional.

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Using Retirement Assets to Purchase an Inn – The Real Story

Allow me to lay out some facts for the four (4) posters.
As I read your posts, I hear you saying that B&B’s are a high risk investment so don’t gamble away your retirement.  I can’t image if the 4 of you were selling your inn/s, and a buyer/s came along and said they would buy your inn/s using their retirement funds that you would turn them away?  Doubt it....

This form has aspiring innkeepers reading your posts.  They are the next generation of innkeepers and they should approach a new career and investment with their eyes open to be sure.  The problem as I see it, is when a buyer and a seller get together and craft a contract on their own and settle without financing (using all cash from retirement, savings or equity) and trusting one adviser/lawyer/realtor etc. to represent both parties without the benefit of impartial facts and figures.  How foolish these buyers would be?  How often does this happen?

Facts:
a. Clients I work with generally have between $200,000 and $1,500,000 in their retirement program/s.  They have been successful in their prior professional lives and are generally fairly sophisticated in knowing to seek advice from professionals before risking all or a portion of their life’s savings on a business acquisition.

b. They consult with their attorney, account, and financial advisor/s and others, who assist them in preparing a due diligence list they (the professionals) will use to evaluate the investment and consult on a plan for acquisition if the planets align and all agree the investment has sound potential and that the property can handle the required level of debt relative to the cash the buyer/s have available for a down payment.

c. After a buying decision is made in consultation with experts, further due diligence occurs when the interested buyer makes application for a loan.  The lender may issue a Letter of Interest, but will require a full narrative commercial appraisal by a bank approved appraiser, title insurance etc. before issuing a final commitment.

d. The lender uses a “bank approved” appraiser with whom they have confidence. The appraisal gives an opinion of value based on an analysis of the inns financials and comparable sales.  The appraiser makes adjustments for differences in the comparable sales used in the body of their work.  The inns historical financials play a significant role in the determination of value.

e. At this point the lender and the buyer should have reasonable confidence in the value and all that went into determining its value at that point in time, in that market.

f. The lender issues a final commitment to lend and memorializes the terms and conditions for the loan.  By this time, the buyer/s have enjoyed the benefit of a great deal of consultation and advice from qualified professionals.  The risks in making an investment in a business and its assets have been substantially narrowed and a serious review by the bank underwriters have determined the property can services the requested loan amount.

Background:  I introduced this program to the hospitality industry in 2005 because I observed that the sweet spot of buyers of inn properties were of an age that they were retired but not tired, looking for a new career, needing to find a new career because they were down-sized, you name it.  These folks need a job and may really need or want to work; they may have lost a bunch of equity in other investments, real estate, retirement accounts and so on, and they are tired of the lack of control they have over their financial future.
The story is all too familiar, the assets they knew they had access to, had lost value, so the capital they have available to buy your inns have fallen below the level required.  All the while the capital they have and could use never considered because they were miss-informed that the only way to use it meant paying taxes and penalties which again reduced what power they had to change their future.

I bear witness to how this program has changed lives.  Many, many of my clients can attest to its power and I am happy to have discovered its potential and I am especially pleased with how the plan has liberated capital so that aspiring innkeepers could realize their dreams of becoming innkeepers and business owners.

As I stated earlier, the next generation of innkeepers are reading your posts, the quality of information they receive it is up to you and others permitted to post.  Since this forum does not provide profile information on posters, the reader cannot determine the qualifications of the individual posting their opinions.  

Aspiring innkeepers and others should have access to accurate information so that they can develop their strategies and so they know to seek help where needed and where they might find qualified assistance.

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Allow me to lay out some facts for the four (4) posters.
As I read your posts, I hear you saying that B&B’s are a high risk investment so don’t gamble away your retirement.  I can’t image if the 4 of you were selling your inn/s, and a buyer/s came along and said they would buy your inn/s using their retirement funds that you would turn them away?  Doubt it....

In answer to this statement, sir, I WILL respond.

I know my small B & B in Podunk will not bring a huge income - unless the new buyers have ideas newer than mine. I admit I have been at it a while and may have run out of fresh ideas, but I do keep trying. I have stated repeatedly - and to my children so there are no surprises to them, that when DH dies, I will clear out the OQ to look reasonable (artist props and stuff removed). Although I will be selling as a B & B and want it to remain a B & B because my City needs it, my price will be that of a house - the B & B furnishings and equipment - everything except my personal belongings - will be a bonus. I do not lie, cheat, nor steal. If I believe something is a bad deal for someone, I will not do it. IF anyone ever got cheated in a deal I was part of, it would be me because I will not cheat someone else. So I say to you sir, I would definitely NOT encourage anyone to risk their retirement on purchasing my B & B. It would not be good for them or my City.

There are many factors to consider. IF the value of their investments has gone down already, they do not need to deplete them more. I am not saying a B & B is not a good investment. Economic downturns mean people travel less and spend less - many inns saw a dramatic drop in revenues after 9-11 and after the 2008 economic meltdown. To find out AFTER investing everything in a place that looks lovely and then find out the City is in turmoil, you and the townspeople do not adjust or like each other, the climate is NOT what you thought it was, and/or the work is nothing like you thought it would be. Yes, this could happen using funds at hand, but at least the old age factor will not have been compromised.

LIFE is a risk - but retirement age is NOT the time to risk and one's retirement is not something to gamble with.

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Plus there are 50 B&B's in my town used to be 75 - that 25 became houses and flats - because Rich successful people could not hack it - thought it would be easy (and then it was! compared to now) and sold up. Far Far to many people come into this industry thinking they understand what its like and then don't! - lady just up from me was a property developer and accountant - so clued up and smart - is desperate to get out as she is exhausted!

also its different in the UK we have a fall back plan - if it all goes belly up and we go bankrupt I could get a council house and the NHS will pay for any healthcare I need - the USA?- its a whole different ball game!

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gillumhouse wrote:

Allow me to lay out some facts for the four (4) posters.
As I read your posts, I hear you saying that B&B’s are a high risk investment so don’t gamble away your retirement.  I can’t image if the 4 of you were selling your inn/s, and a buyer/s came along and said they would buy your inn/s using their retirement funds that you would turn them away?  Doubt it....

In answer to this statement, sir, I WILL respond.

I know my small B & B in Podunk will not bring a huge income - unless the new buyers have ideas newer than mine. I admit I have been at it a while and may have run out of fresh ideas, but I do keep trying. I have stated repeatedly - and to my children so there are no surprises to them, that when DH dies, I will clear out the OQ to look reasonable (artist props and stuff removed). Although I will be selling as a B & B and want it to remain a B & B because my City needs it, my price will be that of a house - the B & B furnishings and equipment - everything except my personal belongings - will be a bonus. I do not lie, cheat, nor steal. If I believe something is a bad deal for someone, I will not do it. IF anyone ever got cheated in a deal I was part of, it would be me because I will not cheat someone else. So I say to you sir, I would definitely NOT encourage anyone to risk their retirement on purchasing my B & B. It would not be good for them or my City.

There are many factors to consider. IF the value of their investments has gone down already, they do not need to deplete them more. I am not saying a B & B is not a good investment. Economic downturns mean people travel less and spend less - many inns saw a dramatic drop in revenues after 9-11 and after the 2008 economic meltdown. To find out AFTER investing everything in a place that looks lovely and then find out the City is in turmoil, you and the townspeople do not adjust or like each other, the climate is NOT what you thought it was, and/or the work is nothing like you thought it would be. Yes, this could happen using funds at hand, but at least the old age factor will not have been compromised.

LIFE is a risk - but retirement age is NOT the time to risk and one's retirement is not something to gamble with.

Check please! Smiling

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I live in a different country, so things are definitely different. Would I sell to someone who told me that they are raiding their government registered retirement fund, yes. Would I warn them that it wasn't a good idea, absolutely. But then again, in this country we don't have the same mortgage rules that you do and I would be selling the house as a house, to avoid capital gains. On the other hand I know how few people could actually afford to get a mortgage for my house, because the B&B income counts for NOTHING on a mortgage application form. Why? Because B&B income isn't guaranteed income. I know that, all the innkeepers on this forum know that. I work hard at getting my guests, but I've had months where income was incredibly low. That doesn't mean that anyone buying from me could be guaranteed to get these guests.... a lot of this has to do with my reputation, with my breakfast, with my attention to detail, with who I am. So even if you bought this house. Even if you bought my name. Even if you bought my furniture, my domain, etc. None of that guarantees your success.

I live in a large city, I have seen someone take over a failing B&B and seen them turn it around. I have seen someone run a B&B dishonestly (she's still running it dishonestly) and she constantly has to have friends post fake reviews because at one time she was the lowest ranked property in the city. I have seen B&Bs and hotels run into the ground by people who didn't know what they are doing and then sell the properties for cents on the dollar.

And most innkeepers will tell you, honestly, that the burn-out rate is about a single year. People who aren't equipped to handle it, who don't realize the work involved, who don't know how to deal with the lack of privacy, disrespect and well the lack of common decency at times. It's not an easy business. And you bet your bottom dollar that I would caution anyone before taking it on and those stupid enough to raid their retirement, even more. I'm not that desperate to sell.

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Replaced the version of the pdf containing the typo, with a new version at RickNewman's request. 

Hillbilly's picture
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WOW!.......Really? ....is this a joke?.....Did someone high jack this poor guys account? I have been gone for awhile and I come back to a train wreck. I'm embarresed....I really hope this is a joke! If I was Rick I would find out who did this under his name and file a law suit against the highjacker. I really feel bad for this poor guy!

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From what has been determined, it is not a hi-jack. It IS him.

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Please be advised that I have apologized to the person that wrote the 1st post. 

Many of you, who responded in this person’s defense, know who this person is and were shocked at my response. How could Rick say such terrible things about our friend?  Since there is no way to know the identity of those who post on this forum, I jumped to the conclusions I did and lashed out on the forum; at that point in time I was not aware that an e-mail could even be sent confidentially or I would have done what I advocated this person do to communicate their recommendation.  I also had no idea if this person was just someone in the forum that did not belong there, or who had some axe to grind. 

Steve sent me an e-mail yesterday and although he did not reveal who this person is still, he assured me that he/she is the real deal and has made quite a contribution to the industry over a number of years.  With this knowledge, I take back everything I said when I flew off the handle at this person. 

One of the posters commented, that many of you, know who you all are, but that does not work for the rest of the visitors/members.  There is no way to know how credible a post is because you cannot determine the credentials of the poster.  My 1st instinct was who is this person?  There was no way to find that out and I too quickly jumped into a defensive posture. 

I am weary by now as you can imagine of reading how bad of a guy Rick Newman is.  I assure you I am not, and have helped lots of innkeepers who will support this.  I hope this will clarify my views on this situation and hope that this last note from me on the subject does not create a bunch more comments.

Sincerely… Rick Newman

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RickNewman wrote:

Please be advised that I have apologized to the person that wrote the 1st post. 

Many of you, who responded in this person’s defense, know who this person is and were shocked at my response. How could Rick say such terrible things about our friend?  Since there is no way to know the identity of those who post on this forum, I jumped to the conclusions I did and lashed out on the forum; at that point in time I was not aware that an e-mail could even be sent confidentially or I would have done what I advocated this person do to communicate their recommendation.  I also had no idea if this person was just someone in the forum that did not belong there, or who had some axe to grind. 

Steve sent me an e-mail yesterday and although he did not reveal who this person is still, he assured me that he/she is the real deal and has made quite a contribution to the industry over a number of years.  With this knowledge, I take back everything I said when I flew off the handle at this person. 

One of the posters commented, that many of you, know who you all are, but that does not work for the rest of the visitors/members.  There is no way to know how credible a post is because you cannot determine the credentials of the poster.  My 1st instinct was who is this person?  There was no way to find that out and I too quickly jumped into a defensive posture. 

I am weary by now as you can imagine of reading how bad of a guy Rick Newman is.  I assure you I am not, and have helped lots of innkeepers who will support this.  I hope this will clarify my views on this situation and hope that this last note from me on the subject does not create a bunch more comments.

Sincerely… Rick Newman


Thanks for that Rick.

The "funny part" of what you wrote should be directed at yourself. That is the whole point, isn't it. Credibility? With what knowledge? You said some pretty dirty things, when no one said anything as such to you, only pointed out an error in a hyperlink looking unprofessional.

Your comments here today have "but but but..." in your explanation for your bad behavior.  I think it is grand that you have been allowed to remain on the forum, period. We do not have to share who we are to be credible. No one needs to prove anything to anyone else. That is your opinion, if you had gotten to know anyone before posting your solicitations here, you may have realized as such.  You still are saying the same thing. Meanwhile, YOU broke the rules by showing up with a solicitation ONLY, as this is not a forum for marketing your goods.  We have this happen regularly...

In other words, once again, too bad you didn't simply say: 

"Gee folks, sorry I went off the deep end...Rick"

 

gillumhouse's picture
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So stick around an READ. You will learn about credibility and how we help newbies AND each other. Give a response when appropriate. If you happen to "step in it" admit and move on like the rest of us do. We do give extra chances before we totally write off.....

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RickNewman wrote:

Please be advised that I have apologized to the person that wrote the 1st post. 

I know you don't want to keep harping on this but was the apology public? ie- can I read it here, in the same place you tore that innkeeper apart?

I also don't want to keep this going and hope that we can all let this fall to the bottom of the thread pile. And I would hope that innkeepers who are just reading this will understand that it is not necessary to make any other comments. If you emailed Steve and he fixed the problems with your links and explained you made an error in lambasting the innkeeper, then no one here really needs to add any other commentary.

So my hope is that we all let it drop.

 

 

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I have said all I am going to on this.  Sorry if is not enough in your view. 

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