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Breakfast Diva

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I have been working with an aspiring innkeeper couple who are really ready to find their dream property. Do any of you know of a great B&B that would be right for them? They are very outdoors oriented and want to do "adventure tours" as part of their B&B experience, such as river rafting, hiking, bike tours, skiing, etc. They fell in love with a wonderful property here in the Pacific Northwest, but the asking price was too high to pencil out. The property could not appraise for the listing price or anywhere close. Again, it's the case of innkeepers not being realistic with today's market. They have lenders who are willing to loan and could probably swing up to $1,000,000, but hopefully less. They are also willing to relocate to many different areas of the country.This couple would even consider a place with a restaurant since they have experience in that area.
I have full confidence that this couple would make terrific innkeepers, have done all their homework that's possible to this point, and are ready to take the plunge!
If you know of a B&B for sale with 8 or more rooms (could be less if the revenue is good) that has the potential for these folks, please let me know. They are not looking for a B&B in a depressed area where the recession has hit so hard that there's no hope of making a go of it.
Thanks!
 

egoodell

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Just make sure that where ever they go to offer "adventures" are something that they can find and afford as far as insurance. The succesful inns that I know make up packages with companies that offer the rafting etc. I don't even want to KNOW what the insurance cost for that is. I just pay the livery insurance to cover driving people from place to place for my wine tours an that costs more than the insurance for the B&B.
RIki
 

Breakfast Diva

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Just make sure that where ever they go to offer "adventures" are something that they can find and afford as far as insurance. The succesful inns that I know make up packages with companies that offer the rafting etc. I don't even want to KNOW what the insurance cost for that is. I just pay the livery insurance to cover driving people from place to place for my wine tours an that costs more than the insurance for the B&B.
RIki.
I agree. We've had lengthy discussions about that. The husband also took a seminar just for adventure tours which was several days long, so his eyes are wide open. The wife attended my 4 day aspiring innkeeper seminar (very intensive) and I've been also working with them one on one. They're definitely ready for the next challenge. Also, they would have about 33% down on a $1 mil property.
 

Morticia

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Just make sure that where ever they go to offer "adventures" are something that they can find and afford as far as insurance. The succesful inns that I know make up packages with companies that offer the rafting etc. I don't even want to KNOW what the insurance cost for that is. I just pay the livery insurance to cover driving people from place to place for my wine tours an that costs more than the insurance for the B&B.
RIki.
I agree. We've had lengthy discussions about that. The husband also took a seminar just for adventure tours which was several days long, so his eyes are wide open. The wife attended my 4 day aspiring innkeeper seminar (very intensive) and I've been also working with them one on one. They're definitely ready for the next challenge. Also, they would have about 33% down on a $1 mil property.
.
Just sent you an email with a property listing.
 

Breakfast Diva

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Just make sure that where ever they go to offer "adventures" are something that they can find and afford as far as insurance. The succesful inns that I know make up packages with companies that offer the rafting etc. I don't even want to KNOW what the insurance cost for that is. I just pay the livery insurance to cover driving people from place to place for my wine tours an that costs more than the insurance for the B&B.
RIki.
I agree. We've had lengthy discussions about that. The husband also took a seminar just for adventure tours which was several days long, so his eyes are wide open. The wife attended my 4 day aspiring innkeeper seminar (very intensive) and I've been also working with them one on one. They're definitely ready for the next challenge. Also, they would have about 33% down on a $1 mil property.
.
Just sent you an email with a property listing.
.
Thanks Morticia. I got your e-mail and will pass it on to the aspirings.
 

wendydk

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Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities...
 

Penelope

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Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities....
Little Blue said:
Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities...
Seriously. Thier playing field is WIDE open!
 

Breakfast Diva

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Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities....
Little Blue said:
Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities...
Seriously. Thier playing field is WIDE open!
.
The problem is most of these inns don't pencil out. To get a loan these days the lenders scrutinize everything. They won't lend unless it's a proven winner. That leaves out distressed properties because they can't show the income needed. Whatever they buy needs to be able to pay it's own bills and generate a bit more.
Send me some suggestions!
 

egoodell

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Just make sure that where ever they go to offer "adventures" are something that they can find and afford as far as insurance. The succesful inns that I know make up packages with companies that offer the rafting etc. I don't even want to KNOW what the insurance cost for that is. I just pay the livery insurance to cover driving people from place to place for my wine tours an that costs more than the insurance for the B&B.
RIki.
I agree. We've had lengthy discussions about that. The husband also took a seminar just for adventure tours which was several days long, so his eyes are wide open. The wife attended my 4 day aspiring innkeeper seminar (very intensive) and I've been also working with them one on one. They're definitely ready for the next challenge. Also, they would have about 33% down on a $1 mil property.
.
Breakfast Diva said:
I agree. We've had lengthy discussions about that. The husband also took a seminar just for adventure tours which was several days long, so his eyes are wide open. The wife attended my 4 day aspiring innkeeper seminar (very intensive) and I've been also working with them one on one. They're definitely ready for the next challenge. Also, they would have about 33% down on a $1 mil property.
GOOD GOOD GOOD. Let them know that our wine tours bring in as much income per couple as a room night. Aside from the high insurance and cheese plate and tasting fees, the only other expense is our time.
Point out to them the best thing for them to do is to place themselves where the action is and work with some companies already up and running to create their packages. My main reason for you to explain to them that they need to do it this way - WHEN WILL THEY BE RUNNING THE INN if they book themselves out hiking and water rafting. We tour departing our inn at 12:30 and come back at 5pm. If it were not for our innsitters I don't know what we'd do.
Unless they have experienced and DEPENDABLE employees, they will end up booking themselves in two places at once. And I rarely hear of anyone who has employees who does not have to supervise them. They will not meet and greet like the owners do for check ins, either!
We can't have a Saturday check in as we are always out driving tours. In season we run tours several times a week.
It gets dicey with just our TWO rooms getting the laundry done and all.
They will retain their sanity by just running the inn, and having the outside contacts, using the experts. What they want to do is much more dangerous, requiring a lot more equipment to maintain than we do just driving around.
RIki
 

gillumhouse

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I totally agree that the work with existing "adventure" companies is the way to go. The only other way would be for each "adventure" to be its own LLC.
My insurance company - going all the way back to when I had Wolf - would not cover me for anything having to do with horses so I posted due to the insurance company, a separate cash or check is required for the stable fee. They said the same with the massage - I had to have a rider on her insurance. A friend who had a bike shop with rentals told me to NOT RENT BIKES because the insurance would "eat me up" so bikes & helmets are available for the guests to use.
I wish them well.
 

Don Draper

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Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities....
Little Blue said:
Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities...
Seriously. Thier playing field is WIDE open!
.
The problem is most of these inns don't pencil out. To get a loan these days the lenders scrutinize everything. They won't lend unless it's a proven winner. That leaves out distressed properties because they can't show the income needed. Whatever they buy needs to be able to pay it's own bills and generate a bit more.
Send me some suggestions!
.
Well, therein lies the catch 22...though it's purportedly a "buyer's market", no successful B&B is going to sell for less than top dollar right now...if they are doing well in this economy they will want maximum return, regardless of what any appraiser has to say. Sounds to me like they should look for a smaller property that they can pay cash for, maybe something with room to expand?
 

Innkeeper To Go

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In the $1 million range, I think the Historic Requa Inn is a terrific buy. Their revenue is $250K and they close 2 months every year, so room for growth. They also have an unused restaurant on site that could bring even more revenue.
It's a lovely place in a fabulous location, especially for outdoors activities. Featured property on National Geographic.
The listing agent, Johanna Welty has a great reputation. Everyone says she's just a delight to work with.
 

Breakfast Diva

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I have found www.innmarketing.com to be a great resource! Check it out!.
Innmarketing is a good site, but I was hoping to get first hand recommendations from the innkeepers here. Very often, the best inns don't even make it to the listings, they're snatched up from just a recommendation. All of us know of innkeepers that don't necessarily have their place on the market, but would sell in a minute if the right offer came around.
That's what I just did <grin>
 

Breakfast Diva

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Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities....
Little Blue said:
Honest to God...if they're that well prepared and have that much money to put down, they should be buried in good opportunities...
Seriously. Thier playing field is WIDE open!
.
The problem is most of these inns don't pencil out. To get a loan these days the lenders scrutinize everything. They won't lend unless it's a proven winner. That leaves out distressed properties because they can't show the income needed. Whatever they buy needs to be able to pay it's own bills and generate a bit more.
Send me some suggestions!
.
Well, therein lies the catch 22...though it's purportedly a "buyer's market", no successful B&B is going to sell for less than top dollar right now...if they are doing well in this economy they will want maximum return, regardless of what any appraiser has to say. Sounds to me like they should look for a smaller property that they can pay cash for, maybe something with room to expand?
.
Rupert said:
Well, therein lies the catch 22...though it's purportedly a "buyer's market", no successful B&B is going to sell for less than top dollar right now...if they are doing well in this economy they will want maximum return, regardless of what any appraiser has to say. Sounds to me like they should look for a smaller property that they can pay cash for, maybe something with room to expand?
But if they REALLY want to sell, they have to come down in price, because their place is overpriced if the appraisal won't appraise. Even in good times, a lot of innkeepers have over inflated ideas of what their property is worth. In reality, it's only worth what it can sell for today.
 

Breakfast Diva

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In the $1 million range, I think the Historic Requa Inn is a terrific buy. Their revenue is $250K and they close 2 months every year, so room for growth. They also have an unused restaurant on site that could bring even more revenue.
It's a lovely place in a fabulous location, especially for outdoors activities. Featured property on National Geographic.
The listing agent, Johanna Welty has a great reputation. Everyone says she's just a delight to work with..
Thank you Innkeeper TG, I'll take a good look at that site and pass it on to them! First hand knowledge of the place is invaluable.
 

Innkeeper To Go

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In the $1 million range, I think the Historic Requa Inn is a terrific buy. Their revenue is $250K and they close 2 months every year, so room for growth. They also have an unused restaurant on site that could bring even more revenue.
It's a lovely place in a fabulous location, especially for outdoors activities. Featured property on National Geographic.
The listing agent, Johanna Welty has a great reputation. Everyone says she's just a delight to work with..
Thank you Innkeeper TG, I'll take a good look at that site and pass it on to them! First hand knowledge of the place is invaluable.
.
The current owners have done a fabulous job with renovations. Just put in a new septic system last year.
The place is busy busy busy most of the year.
For the revenue it's bringing in, it's really a great deal.
And don't know if it's still true or not, but a few months ago the owner said that his local bank had financing available for a qualified buyer.
 

bbinnsitters

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I have found www.innmarketing.com to be a great resource! Check it out!.
Innmarketing is a good site, but I was hoping to get first hand recommendations from the innkeepers here. Very often, the best inns don't even make it to the listings, they're snatched up from just a recommendation. All of us know of innkeepers that don't necessarily have their place on the market, but would sell in a minute if the right offer came around.
That's what I just did <grin>
.
So tell your Aspirings to go out and find the property of their dreams and make an offer.
 

Samster

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In the $1 million range, I think the Historic Requa Inn is a terrific buy. Their revenue is $250K and they close 2 months every year, so room for growth. They also have an unused restaurant on site that could bring even more revenue.
It's a lovely place in a fabulous location, especially for outdoors activities. Featured property on National Geographic.
The listing agent, Johanna Welty has a great reputation. Everyone says she's just a delight to work with..
Thank you Innkeeper TG, I'll take a good look at that site and pass it on to them! First hand knowledge of the place is invaluable.
.
Does it have to be 8 rooms? There are a couple of forum members that have 6 room places that are for sale.
 

Breakfast Diva

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In the $1 million range, I think the Historic Requa Inn is a terrific buy. Their revenue is $250K and they close 2 months every year, so room for growth. They also have an unused restaurant on site that could bring even more revenue.
It's a lovely place in a fabulous location, especially for outdoors activities. Featured property on National Geographic.
The listing agent, Johanna Welty has a great reputation. Everyone says she's just a delight to work with..
Thank you Innkeeper TG, I'll take a good look at that site and pass it on to them! First hand knowledge of the place is invaluable.
.
Does it have to be 8 rooms? There are a couple of forum members that have 6 room places that are for sale.
.
I'll be happy to send any info on to the aspirings, especially if the inns are in an area rich in outdoor activities that could generate extra income if worked properly.
 
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