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myschae

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I'm back. We put in an offer and it was accepted (yay!) and now we're working on so, so many fronts to try to make this a reality. Honestly, I think I'm just looking for some encouragement at this point.

One track is the formal Purchase and Sale (P&S) agreement. The Letter of Intent is all signed but we have to conform the P&S around local laws, financing, and everyone's most important points. And, a holiday weekend.

Another is financing. We learned today we meet the criteria to apply for a SBA (7a) loan (yay) and that our business plan looks really, really good but might transcend to terrific with a little more of our personality and motivations for running the Inn included. No problem. I'd kept that out because I wasn't sure it would be considered professional (a sort of business is business philosophy). Our wonderful lending associate let us know that many SBA loans are sold on the story and part of the story includes the owner's motivation, inspiration, and reasons for wanting to change lifestyles. Today I learned.

Then, there's trying to pack up and move - all while waiting on paperwork. So, so much paperwork.

I really want this Inn, though. Just checking in and hoping if anyone out there has any spare fingers to cross, ideas on how to convince a bank to give me money, and how to win the opportunity to live the dream would be greatly appreciated.

(Also, we have a solid backup plan if this purchase falls through but ... oh, just let me say my heart wants this opportunity so bad. The backup plan would be a perfectly good life but this is what I want.)

Thank you for listening. ;)
 

Morticia

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Yes, tell your story! Show the bank your passion.
 

gillumhouse

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Wishing you the best. You are smart enough to go into this with your eyes wide open. You could even (check with your guru first) include the fact that you DID consult to learn all you could abour what is coming with this purchase. You DO know the pitfalls and none were anything insurmountable. You have a team of consultants as advisors, and you have your passion. May everything click into place for you so we can soon welcome you as a full-fledged innkeeper
 

myschae

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Yes, tell your story! Show the bank your passion.
I was actively trying to avoid it. My background is in grant writing (wrote 3 successfully funded federal education-related grants and survived the audits) and in that aspect you want it to be: Just the facts, don't bother us with the people. I'm glad she clued me in because I do think it makes us a much stronger case.

Edited to add: Our lovely loan officer did mention that she was quite impressed with the thoroughness of my financial analysis and the well-grounded basis for my numbers. Yay me!
 

Morticia

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We had a full presentation with ‘slides’ (or PowerPoint for the younger crowd) that the engineer put together. Then we had the ‘color’ put together by the writer. And, of course, we had us. It’s the personality behind the numbers in this biz.

We were so excited. It was groups like this one here that convinced me we could do this.
 

myschae

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We had a full presentation with ‘slides’ (or PowerPoint for the younger crowd) that the engineer put together. Then we had the ‘color’ put together by the writer. And, of course, we had us. It’s the personality behind the numbers in this biz.

We were so excited. It was groups like this one here that convinced me we could do this.
Who did you give the presentation to? It's probably different right now, like everything else, because of covid. We had a Zoom meeting for questions but my understanding is that the rest (bulk) of this will be done remotely. It's a good thing as we don't currently live in the state where the Inn we're trying to buy happens to be located.
 

myschae

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Wishing you the best. You are smart enough to go into this with your eyes wide open. You could even (check with your guru first) include the fact that you DID consult to learn all you could abour what is coming with this purchase. You DO know the pitfalls and none were anything insurmountable. You have a team of consultants as advisors, and you have your passion. May everything click into place for you so we can soon welcome you as a full-fledged innkeeper
Thank you so much. Our loan officer was reassured that we've hired consultants: one for the b&b, one for the incorporation since we're using the ROBS program, a local attorney and we have a line on a community CPA to make sure all the tax rules are followed.

I'm pretty confident in my knowledge but I know what I do not know and my life experience has led me in the direction of not wanting to 'borrow' too much expertise for free. It's not because the advice isn't just as good, it's because people who put the time, effort, and kindness to help others through difficult tasks deserve compensation. I lend my own expertise out pretty freely but try to remember to not assume that's reasonable for anyone else. (Sometimes I lend so much it's almost a job.)

Thank you all for the encouragement. It really does help. Financing is a long haul operation.
 

Morticia

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Who did you give the presentation to? It's probably different right now, like everything else, because of covid. We had a Zoom meeting for questions but my understanding is that the rest (bulk) of this will be done remotely. It's a good thing as we don't currently live in the state where the Inn we're trying to buy happens to be located.
We did our presentation to two banks. We opted for the one with better rates and more experience in holding a commercial loan on a b&b.
 

gillumhouse

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Nah, do not worry about the compensation angle with me anyway. If I cannot help people, I ain't worth much and I happen to think I might be worth a lot. I am on the downside of the hill mow - so unless I pass on what I have learned, it is not going to get passed. I am on here as me - too old to remember what I was if anon, Message or e-mail or even call any time.
 

Mrs. G

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Best of luck to you. I can relate to your heart just pulling you in the direction of buying your inn. I am so deeply exhausted and on some level traumatized by the constant moving, mobility, instability that my husband's industry has required of us. On a very deep heartfelt level I dream of buying an inn, and FINALLY in my life creating a stable, rooted life situation centered around the home, the inn. I really admire you for going for it and it sounds like you have done an exceptional job of researching, due diligence, planning and know what you are getting into. I think I read somewhere that you are wanting to escape the corporate life. If so, there are no words for me to express how much I can relate to this. My spouse and I have been bruised, battered, and just beaten down by his very volatile, boom/bust, and frankly cutthroat industry. I know inns are not perfect, arrivals at any shangrila but so many aspects of it deeply appeal to me and pull my heart in that direction. We have been moving all this month and are now mobile with everything in storage, and finally can soon devote more time and research to running an inn and what the realities, pitfalls can be. I know it could be catastrophic to go into it with rose colored glasses, naive, clueless to potential downfalls and big problems. Anyway, you have encouraged me here and I don't have advice but can relate to the emotional pull and desire to buy an inn and live that lifestyle! Good luck to you and keep us posted!

By the way, that's interesting that the lenders want you to tell your story of why you want to buy this inn. I had no idea that more human, personal story factor could come into play with getting loan approval.
 
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Morticia

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@Mrs. G Because you’ll probably be dealing with a local lender, yes, they want to see your personality. Will you fit into the neighborhood? Will you be able to handle everything that’s thrown at you? What are your strong points? Weak points? All of it is important.

A well thought out business plan is a roadmap, it’s not ‘the law.’ The ability to roll with the punches and reinvent yourselves and the business is gold. If you go into a mortgage meeting with the idea that what you’ve researched and written down is what’s going to happen, your lender will be wary that you really don’t know what you’re talking about.

Getting out of the rat race, especially after the year we’ve all been thru, is a goal worth pursuing.
 

myschae

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We did our presentation to two banks. We opted for the one with better rates and more experience in holding a commercial loan on a b&b.
Interesting. I would love to be able to do this but everyone is working remote now. Besides, we're two states away. Unfortunately, still no word on the Purchase and Sale agreement (what are those attorneys doing?!). It's hurry up and wait for us now. Meanwhile, we're packing as though we're moving on to option number 2; it's our only option until we get a definite answer on this deal.
 

myschae

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Nah, do not worry about the compensation angle with me anyway. If I cannot help people, I ain't worth much and I happen to think I might be worth a lot. I am on the downside of the hill mow - so unless I pass on what I have learned, it is not going to get passed. I am on here as me - too old to remember what I was if anon, Message or e-mail or even call any time.
Thank you. I mean we tend to look for organizations which are recommended by friends in the industry or by successful people in the industry rather than asking those friends or people to guide us too far, for free. I am ALWAYS grateful for free advice and especially grateful for great referrals. Gifted people who enjoy sharing what they do for others benefit deserve to be rewarded; I try to do my little part.
 

myschae

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Best of luck to you. I can relate to your heart just pulling you in the direction of buying your inn. I am so deeply exhausted and on some level traumatized by the constant moving, mobility, instability that my husband's industry has required of us. On a very deep heartfelt level I dream of buying an inn, and FINALLY in my life creating a stable, rooted life situation centered around the home, the inn. I really admire you for going for it and it sounds like you have done an exceptional job of researching, due diligence, planning and know what you are getting into. I think I read somewhere that you are wanting to escape the corporate life. If so, there are no words for me to express how much I can relate to this. My spouse and I have been bruised, battered, and just beaten down by his very volatile, boom/bust, and frankly cutthroat industry. I know inns are not perfect, arrivals at any shangrila but so many aspects of it deeply appeal to me and pull my heart in that direction. We have been moving all this month and are now mobile with everything in storage, and finally can soon devote more time and research to running an inn and what the realities, pitfalls can be. I know it could be catastrophic to go into it with rose colored glasses, naive, clueless to potential downfalls and big problems. Anyway, you have encouraged me here and I don't have advice but can relate to the emotional pull and desire to buy an inn and live that lifestyle! Good luck to you and keep us posted!

By the way, that's interesting that the lenders want you to tell your story of why you want to buy this inn. I had no idea that more human, personal story factor could come into play with getting loan approval.
Hi there, fellow traveler!

Yes, we've both enjoyed our careers and are still passionate about our fields but this moving around business is getting to be too much wear and tear on us. Business cycles seem to be overly tied to projects where they hire x people to do the project then lay them off until they rehire them for the next project.

It's hard on people to have to keep relocating but, I assume, it saves some corporate bottom line to not have to pay employees for the time it takes for them to locate and structure a new project. Funny thing is, my husband is in a fairly small industry (for almost 30 years) so it's a lot of the same faces coming into new groups in new areas. It's expensive, wastes money we could be using for retirement and I HATE MOVING.

A big part of what I added to the business plan is the part of our story where we want to put down deep roots in the community. We like getting involved in local events, we like helping out to keep things clean, safe, and friendly. We want to find some place, remember our neighbors names, and stay awhile.

I wish you the best and hope that you get to live your dream. Ours is stalled right now and I don't know whether it will go through yet. I suppose we'll relax after closing.
 

myschae

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@Mrs. G Because you’ll probably be dealing with a local lender, yes, they want to see your personality. Will you fit into the neighborhood? Will you be able to handle everything that’s thrown at you? What are your strong points? Weak points? All of it is important.

A well thought out business plan is a roadmap, it’s not ‘the law.’ The ability to roll with the punches and reinvent yourselves and the business is gold. If you go into a mortgage meeting with the idea that what you’ve researched and written down is what’s going to happen, your lender will be wary that you really don’t know what you’re talking about.

Getting out of the rat race, especially after the year we’ve all been thru, is a goal worth pursuing.
Morticia is exactly right. So far, every interaction we've had has felt like a mini-job interview. This small community is very protective of its lifestyle - and I don't blame it. No one wants Animal House moving in next door. At the same time, lots of people have 'great ideas' but no plan or idea on how to bring those ideas to fruition.

A great idea is just that: a great idea. The implementation is what makes or breaks the whole thing - well, that and a dash of luck on occasion. I think we wrote a very strong plan. If we are successful, I would be very happy to share it on this board for future aspiring innkeepers who might like to see a sample.
 

Mrs. G

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Hi there, fellow traveler!

Yes, we've both enjoyed our careers and are still passionate about our fields but this moving around business is getting to be too much wear and tear on us. Business cycles seem to be overly tied to projects where they hire x people to do the project then lay them off until they rehire them for the next project.

It's hard on people to have to keep relocating but, I assume, it saves some corporate bottom line to not have to pay employees for the time it takes for them to locate and structure a new project. Funny thing is, my husband is in a fairly small industry (for almost 30 years) so it's a lot of the same faces coming into new groups in new areas. It's expensive, wastes money we could be using for retirement and I HATE MOVING.

A big part of what I added to the business plan is the part of our story where we want to put down deep roots in the community. We like getting involved in local events, we like helping out to keep things clean, safe, and friendly. We want to find some place, remember our neighbors names, and stay awhile.

I wish you the best and hope that you get to live your dream. Ours is stalled right now and I don't know whether it will go through yet. I suppose we'll relax after closing.
Well I am rooting for you, friend! You are an inspiration to me and I tend to think you will get your approval and go on to operate a beautifully successful inn that you will love and enjoy owning. You certainly sound to have done your due diligence, planning and will very likely be a successful innkeeper who makes her dream turn into practical reality. I’m looking forward to hearing about your developments as you progress towards your hopes and dreams!
 
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gillumhouse

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Thank you. I mean we tend to look for organizations which are recommended by friends in the industry or by successful people in the industry rather than asking those friends or people to guide us too far, for free. I am ALWAYS grateful for free advice and especially grateful for great referrals. Gifted people who enjoy sharing what they do for others benefit deserve to be rewarded; I try to do my little part.
My reward has always been seeing the person I helped succeed. IF we do not "pass it on" it will be lost. Himself's passion was building muzzle loading rifles - an art that is dying out - until the post-polio forced him to stop. None of our buys were interested in learning the craft. He switched to painting when he could no longer build rifles.
 

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