Foreclosure Sale

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EmptyNest

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If anyone is interested.... Foreclosure sale on 16 April at 10AM. This property used to have a fantastic reputation and unfortunately was bought and has been run by people who really know nothing about hospitality and running an inn properly.
 

bbinnsitters

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Interesting looking place - you should have posted it in the Aspirings area - hopefully wannabes will see it!
 

Penelope

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That is a lovely place. I wonder how old the photos are.
 

muirford

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Is that really going to happen this time? The property is beautiful but has been neglected - we were there maybe two years ago. The restaurant had really gone downhill since the time we dined there with catlady, and the staff was lackadaisical at best. They messed up an appointment I had made for a massage and were really not very helpful in taking care of it. The rooms are nicely appointed and could be spectacular with the right amount of attention. It would be a perfect spot for someone to do an upscale farm-centric kind of inn, with a restaurant that focused on local and organic foods. There's not many any other options for fine dining in the area.
 

wendydk

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Looks huge...I like this statement:
"Our maximum occupancy is limited to only 20 couples, which creates an exclusive and intimate setting"
 

EmptyNest

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Is that really going to happen this time? The property is beautiful but has been neglected - we were there maybe two years ago. The restaurant had really gone downhill since the time we dined there with catlady, and the staff was lackadaisical at best. They messed up an appointment I had made for a massage and were really not very helpful in taking care of it. The rooms are nicely appointed and could be spectacular with the right amount of attention. It would be a perfect spot for someone to do an upscale farm-centric kind of inn, with a restaurant that focused on local and organic foods. There's not many any other options for fine dining in the area..
I would guess it is going to happen this time. They have already been through Chapter 11 and I hear things have gotten very bad lately.
I sure wish the previous owner who got screwed by taking a second mortgage back for them when purchased...a no no......could get it back..but doubt that could happen.
 

white pine

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Is that really going to happen this time? The property is beautiful but has been neglected - we were there maybe two years ago. The restaurant had really gone downhill since the time we dined there with catlady, and the staff was lackadaisical at best. They messed up an appointment I had made for a massage and were really not very helpful in taking care of it. The rooms are nicely appointed and could be spectacular with the right amount of attention. It would be a perfect spot for someone to do an upscale farm-centric kind of inn, with a restaurant that focused on local and organic foods. There's not many any other options for fine dining in the area..
I would guess it is going to happen this time. They have already been through Chapter 11 and I hear things have gotten very bad lately.
I sure wish the previous owner who got screwed by taking a second mortgage back for them when purchased...a no no......could get it back..but doubt that could happen.
.
This is a concern I have about buying the place we are looking at. We can afford to buy, I think we can run it, but can we afford to SELL it. When I got out of retail I decided to (against my acct's wishes) to liquidate the inventory and sell the commercial building rather than get involved in financing. ( We did fine on this.)
Banks will loan on a building/real estate, but getting a loan on a business is harder. I understand it is common for the sellers of B&B's to have to help with the financing. Are other people getting stuck similarly? I know a person who sold a good business to some clueless folks who ran it down. He ended up taking it back, but had no money left to build it up-- they almost went bankrupt.
 

wendydk

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This is why I'm so glad I'm small, with no giant mortgage hanging over my head...that was my biggest fear when we were shopping. The smaller Inns can't get financed no matter what (if they are considered a home primarily) and the bigger Inns CAN get financed, but obviously sometimes shouldn't.
It's all very unfair.
 

EmptyNest

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Is that really going to happen this time? The property is beautiful but has been neglected - we were there maybe two years ago. The restaurant had really gone downhill since the time we dined there with catlady, and the staff was lackadaisical at best. They messed up an appointment I had made for a massage and were really not very helpful in taking care of it. The rooms are nicely appointed and could be spectacular with the right amount of attention. It would be a perfect spot for someone to do an upscale farm-centric kind of inn, with a restaurant that focused on local and organic foods. There's not many any other options for fine dining in the area..
I would guess it is going to happen this time. They have already been through Chapter 11 and I hear things have gotten very bad lately.
I sure wish the previous owner who got screwed by taking a second mortgage back for them when purchased...a no no......could get it back..but doubt that could happen.
.
This is a concern I have about buying the place we are looking at. We can afford to buy, I think we can run it, but can we afford to SELL it. When I got out of retail I decided to (against my acct's wishes) to liquidate the inventory and sell the commercial building rather than get involved in financing. ( We did fine on this.)
Banks will loan on a building/real estate, but getting a loan on a business is harder. I understand it is common for the sellers of B&B's to have to help with the financing. Are other people getting stuck similarly? I know a person who sold a good business to some clueless folks who ran it down. He ended up taking it back, but had no money left to build it up-- they almost went bankrupt.
.
This happened with another local one. People bought it who didn't have a clue. They leased it to someone who said they bought it...even more clueless. Kicked them out and now back on the market again with owners in Europe. We have several here that have been for sale for years....not a good thing. Which is why we are hoping once the market comes back a bit...we can sell ours as a home rather than a B & B. We planned ahead for that.
I have no idea who in their right mind will buy this place if they don't have a group of investors with a bucket of cash because no one is going to give a loan for it. Thats why my friend who took back a second mortgage for them because she wanted to sell so badly. Now she is left with absolutely nothing!!!
 

white pine

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Is that really going to happen this time? The property is beautiful but has been neglected - we were there maybe two years ago. The restaurant had really gone downhill since the time we dined there with catlady, and the staff was lackadaisical at best. They messed up an appointment I had made for a massage and were really not very helpful in taking care of it. The rooms are nicely appointed and could be spectacular with the right amount of attention. It would be a perfect spot for someone to do an upscale farm-centric kind of inn, with a restaurant that focused on local and organic foods. There's not many any other options for fine dining in the area..
I would guess it is going to happen this time. They have already been through Chapter 11 and I hear things have gotten very bad lately.
I sure wish the previous owner who got screwed by taking a second mortgage back for them when purchased...a no no......could get it back..but doubt that could happen.
.
This is a concern I have about buying the place we are looking at. We can afford to buy, I think we can run it, but can we afford to SELL it. When I got out of retail I decided to (against my acct's wishes) to liquidate the inventory and sell the commercial building rather than get involved in financing. ( We did fine on this.)
Banks will loan on a building/real estate, but getting a loan on a business is harder. I understand it is common for the sellers of B&B's to have to help with the financing. Are other people getting stuck similarly? I know a person who sold a good business to some clueless folks who ran it down. He ended up taking it back, but had no money left to build it up-- they almost went bankrupt.
.
This happened with another local one. People bought it who didn't have a clue. They leased it to someone who said they bought it...even more clueless. Kicked them out and now back on the market again with owners in Europe. We have several here that have been for sale for years....not a good thing. Which is why we are hoping once the market comes back a bit...we can sell ours as a home rather than a B & B. We planned ahead for that.
I have no idea who in their right mind will buy this place if they don't have a group of investors with a bucket of cash because no one is going to give a loan for it. Thats why my friend who took back a second mortgage for them because she wanted to sell so badly. Now she is left with absolutely nothing!!!
.
Exactly!
I feel sorry for your friend. My friend got his business back twice!! With a small inn at least you can sell as a home. A large inn needs to generate real numbers to support the selling price. If the bank won't loan on it, it may be best not to go there. Being able to build a business to that point in this economy daunting to say the least.
Moral to aspirings: think about how you are going to sell one day.
 

SecondAct

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Catlady, can you email off the forum with additional details about this property? I'm assuming the bank in first position will end up taking back the property and preclude your friend (second mortgage holder) from having any stake in it. Is there no way they can bid successfully on getting the property back? It's definitely a beautiful setup from the photos (understand they're a year old).
 

muirford

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Catlady, can you email off the forum with additional details about this property? I'm assuming the bank in first position will end up taking back the property and preclude your friend (second mortgage holder) from having any stake in it. Is there no way they can bid successfully on getting the property back? It's definitely a beautiful setup from the photos (understand they're a year old)..
Be careful not to underestimate the amount of money it will take to make this place work again. There are large grounds to keep up, many buildings, and lots of staff required to handle a place that size. You're likely to be more of a general manager there than an innkeeper. You will need a good year's worth of operating expenses in the bank in addition to whatever you pay for the property to get it up and running well, IMO. That's from seeing it two years ago; I'm not sure what's happened to it in that intervening time but I can't imagine that there's not a lot of deferred maintenance.
 

EmptyNest

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Catlady, can you email off the forum with additional details about this property? I'm assuming the bank in first position will end up taking back the property and preclude your friend (second mortgage holder) from having any stake in it. Is there no way they can bid successfully on getting the property back? It's definitely a beautiful setup from the photos (understand they're a year old)..
No my friend has already forfeited her second mortgage to them when they did CHapter 11. She too has her own personal properties in foreclosure because of it :-(
 

SecondAct

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Catlady, can you email off the forum with additional details about this property? I'm assuming the bank in first position will end up taking back the property and preclude your friend (second mortgage holder) from having any stake in it. Is there no way they can bid successfully on getting the property back? It's definitely a beautiful setup from the photos (understand they're a year old)..
Be careful not to underestimate the amount of money it will take to make this place work again. There are large grounds to keep up, many buildings, and lots of staff required to handle a place that size. You're likely to be more of a general manager there than an innkeeper. You will need a good year's worth of operating expenses in the bank in addition to whatever you pay for the property to get it up and running well, IMO. That's from seeing it two years ago; I'm not sure what's happened to it in that intervening time but I can't imagine that there's not a lot of deferred maintenance.
.
Thanks ... we may just do a drive-by in early March on our way to Richmond. Sad state of affairs on the property, sounds like.
 

Mountain Inn

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Catlady, can you email off the forum with additional details about this property? I'm assuming the bank in first position will end up taking back the property and preclude your friend (second mortgage holder) from having any stake in it. Is there no way they can bid successfully on getting the property back? It's definitely a beautiful setup from the photos (understand they're a year old)..
No my friend has already forfeited her second mortgage to them when they did CHapter 11. She too has her own personal properties in foreclosure because of it :-(
.
I stayed at Jordan Hollow Farm way back in the 90's and totally enjoyed it. Certainly hope it can get going again!
 

SecondAct

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Catlady, can you email off the forum with additional details about this property? I'm assuming the bank in first position will end up taking back the property and preclude your friend (second mortgage holder) from having any stake in it. Is there no way they can bid successfully on getting the property back? It's definitely a beautiful setup from the photos (understand they're a year old)..
No my friend has already forfeited her second mortgage to them when they did CHapter 11. She too has her own personal properties in foreclosure because of it :-(
.
I stayed at Jordan Hollow Farm way back in the 90's and totally enjoyed it. Certainly hope it can get going again!
.
We went to see it. It's a beautiful property on the one hand, but lots of issues on the other hand. The bank is looking to get waaaayyy too much out of it at this point.
 

EmptyNest

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Catlady, can you email off the forum with additional details about this property? I'm assuming the bank in first position will end up taking back the property and preclude your friend (second mortgage holder) from having any stake in it. Is there no way they can bid successfully on getting the property back? It's definitely a beautiful setup from the photos (understand they're a year old)..
No my friend has already forfeited her second mortgage to them when they did CHapter 11. She too has her own personal properties in foreclosure because of it :-(
.
I stayed at Jordan Hollow Farm way back in the 90's and totally enjoyed it. Certainly hope it can get going again!
.
We went to see it. It's a beautiful property on the one hand, but lots of issues on the other hand. The bank is looking to get waaaayyy too much out of it at this point.
.
Yes beautiful, but pricey. Probably worth it because of the land I suspect. I hear someone else has expressed some interest. But..lots of hard work needed there to gain back the reputation.
 

nwmea

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Where is it location, the complete details for this foreclosure property would really help us @Catlady
 
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