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Buying a B&B in foreclosure... the way to go?

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briarrosebb

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All,
A bit ago this story surfaced on innspiring.com:
http://www.ocala.com/article/20090408/articles/904081006
… where an historic B&B, 10 rooms, rates of $150+ a night, fair market value in excess of $1 million, sold at foreclosure to the lender for $100,000. Effectively, there were no bidders besides the lender at the auction.
Is this normal where B&Bs sell for such a discount at foreclosure auction?
Does anyone have other examples of this happening?
Is there some source of information on B&Bs in foreclosure whether historical data or B&Bs about to go on auction?

Thanks for any help…
 

EmptyNest

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Oh yes. I had a friend who bought her place for $500K, sold her B & B for $750K and then.......2 owners later... after having paid 1.2 million, went bankrupt and it sold at auction for $250,000!
I have heard of other similar situations. Sad but true:-(
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks.
 

muirford

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Oh yes. I had a friend who bought her place for $500K, sold her B & B for $750K and then.......2 owners later... after having paid 1.2 million, went bankrupt and it sold at auction for $250,000!
I have heard of other similar situations. Sad but true:-(
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks..
catlady said:
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks.
Wow, they're in foreclosure? It had really gone downhill since we went there for dinner several years ago. Sad - it could be a wonderful place.
 

Copperhead

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We get 1-2 fiyers each year for auctions on B&B's, Inns or even Estates. These are not in foreclosure, just selling off...maybe before it is force on them. These auctions have a minimum bid (maybe what is owed + auctioneer fees). Some of these places are breathtaking.
 

EmptyNest

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Oh yes. I had a friend who bought her place for $500K, sold her B & B for $750K and then.......2 owners later... after having paid 1.2 million, went bankrupt and it sold at auction for $250,000!
I have heard of other similar situations. Sad but true:-(
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks..
catlady said:
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks.
Wow, they're in foreclosure? It had really gone downhill since we went there for dinner several years ago. Sad - it could be a wonderful place.
.
Yep, but someone just told me that it wouldn't sell and that it was a formality and the owners have refinanced..so we shall see....I am very dubious about it.
 

muirford

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Oh yes. I had a friend who bought her place for $500K, sold her B & B for $750K and then.......2 owners later... after having paid 1.2 million, went bankrupt and it sold at auction for $250,000!
I have heard of other similar situations. Sad but true:-(
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks..
catlady said:
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks.
Wow, they're in foreclosure? It had really gone downhill since we went there for dinner several years ago. Sad - it could be a wonderful place.
.
Yep, but someone just told me that it wouldn't sell and that it was a formality and the owners have refinanced..so we shall see....I am very dubious about it.
.
I wonder if they have maintained their SR membership; their website still says so. I haven't got the new book yet and the website still lists them.
 

EmptyNest

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Oh yes. I had a friend who bought her place for $500K, sold her B & B for $750K and then.......2 owners later... after having paid 1.2 million, went bankrupt and it sold at auction for $250,000!
I have heard of other similar situations. Sad but true:-(
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks..
catlady said:
This place has had a forecloure / auction on June 13 ad in the paper for the past 2 weeks.
Wow, they're in foreclosure? It had really gone downhill since we went there for dinner several years ago. Sad - it could be a wonderful place.
.
Yep, but someone just told me that it wouldn't sell and that it was a formality and the owners have refinanced..so we shall see....I am very dubious about it.
.
I wonder if they have maintained their SR membership; their website still says so. I haven't got the new book yet and the website still lists them.
.
Yes as far as I know ...it is still business as usual. I think I am going to go there on June 13 to see if an auction REALLY happens.
 

JBloggs

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I just looked at the inns for sale on bbonline for the last 30 days and so many of them are 1.8mil and over - a couple way way over. Perhaps the smaller inns ae stickin' with it when the big ones are going bust. Most of us have upped the ante on our marketing in this down turned economy, and most are doing better than they had before the recession/depression. Guests assume we are hit hard by this and as we promote more "travel within your state/within your means" getaways, we are doing well. Here is the link.
 
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