Our idea - what do you think?

[Innkeeper To Go]

White Pine sounds like you are making the current economy work for you.
40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person. Add in the $800/month mtge payment and I am projecting a breakeven amount more or less.
We have made an offer that is less then one 1/3 of the 2006 selling price and less then half of the 2003 selling price. We also are using a projected gross about 20% less then the last full year we have in 2005. Occupancy rates in the hotel industry are at or near ten years lows right now.
I still have some time before the offer is reviewed to find a good reason not to buy. .

40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person.

You want a manager to work around the clock to make your business viable and you think $2500 is a fair salary?
So around $600 per week? Seriously?
.

40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person.

You want a manager to work around the clock to make your business viable and you think $2500 is a fair salary?
So around $600 per week? Seriously?

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.
Morticia - Yeah the price is what is even opening up this opportunity.
.

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.

Which just returns us to the primary question. Is this a good idea?
And I return to my first response.
No.
Property management has no bearing whatsoever on the tremendous work that is done by an innkeeper around the clock. A good inn manager never really has a day off. He/she is working 7 days a week, often 10-12 hours a day.
The reason you are providing housing on-site is to provide benefit for you, not the manager. Do you think it's an extra bonus for them that guests ring the bell when locked out of their room or just need assistance in the night? Again, comparing the apartment provided to an apartment manager to the housing provided to an onsite inn manager is comparing apples and oranges.
Flipping a B&B in good times is a risky proposition. Thinking that it's possible to turn around a B&B that went into foreclosure and to flip at profit in 2010 is naive. Thinking that the appropriate pay for a managing innkeeper to do that work is in the range of $10 an hour (assuming the innkeeper is successful at ONLY working 60 hours a week) is crazy.
There are great deals out there, no doubt about it. They'll tempt the most risky of opportunists, no doubt.
But the work to be done to restore an inn to profitability is no picnic. The innkeeper you would hire deserves owner-partners who understand and appreciate the enormous contribution he/she would be making.
It's pretty clear to me that you don't.

 

[toddburme]

I have to say, I am am entertaining the idea of renting to cover the mtge for a few years and then seeing if I couldn't sell it for more then I paid. If the Bed and Breakfast does not add value at 5 rooms and under, I will have put 50 to 100k into furniture that has not added value and certainly could not be financed by the new owner.
From a real estate viewpoint, I see being able to hold it for a while as the key. A beautiful 100 plus year old Victorian house would not be available for this price unless it was because of the current market. The house is absolutely stunning. But as many of us know, a 100 year old house does not "wait" very well. Even the two years it was closed as a BnB and then foreclosed have taken a huge toll and it is only going to get worse. That is why this whole plan came about at all. The house is definitely under valued at this price. But in this market it is tough to prove that. So I need a way to get it to 2012 so that I can prove it.
Other thing - So the feeling is my salary/compensation is way understated at $2500? I was thinking of a bonus when the place sells. I have stated several times that I see this person as the key to whole thing. Any business runs on the strength of its weakest employee.
I am also very appreciative that all of you are willing to give of your valuable time to share your ideas on this with me. I know it is not the normal aspiring innkeeper thread.

 

[JBloggs]

Okay I have not posted, I now will.
The #1 true benefit of owning a Bed and Breakfast is the ability to write off expenses as you LIVE in the business, other than that you can put that SAME MONEY into a high interest yielding account - do zero work, zero stress and make more money.

 

[toddburme]

White Pine sounds like you are making the current economy work for you.
40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person. Add in the $800/month mtge payment and I am projecting a breakeven amount more or less.
We have made an offer that is less then one 1/3 of the 2006 selling price and less then half of the 2003 selling price. We also are using a projected gross about 20% less then the last full year we have in 2005. Occupancy rates in the hotel industry are at or near ten years lows right now.
I still have some time before the offer is reviewed to find a good reason not to buy. .

40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person.

You want a manager to work around the clock to make your business viable and you think $2500 is a fair salary?
So around $600 per week? Seriously?
.

40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person.

You want a manager to work around the clock to make your business viable and you think $2500 is a fair salary?
So around $600 per week? Seriously?

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.
Morticia - Yeah the price is what is even opening up this opportunity.
.

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.

Which just returns us to the primary question. Is this a good idea?
And I return to my first response.
No.
Property management has no bearing whatsoever on the tremendous work that is done by an innkeeper around the clock. A good inn manager never really has a day off. He/she is working 7 days a week, often 10-12 hours a day.
The reason you are providing housing on-site is to provide benefit for you, not the manager. Do you think it's an extra bonus for them that guests ring the bell when locked out of their room or just need assistance in the night? Again, comparing the apartment provided to an apartment manager to the housing provided to an onsite inn manager is comparing apples and oranges.
Flipping a B&B in good times is a risky proposition. Thinking that it's possible to turn around a B&B that went into foreclosure and to flip at profit in 2010 is naive. Thinking that the appropriate pay for a managing innkeeper to do that work is in the range of $10 an hour (assuming the innkeeper is successful at ONLY working 60 hours a week) is crazy.
There are great deals out there, no doubt about it. They'll tempt the most risky of opportunists, no doubt.
But the work to be done to restore an inn to profitability is no picnic. The innkeeper you would hire deserves owner-partners who understand and appreciate the enormous contribution he/she would be making.
It's pretty clear to me that you don't.
.

I admit, I thought the room and board added to the salary not detracted. So I was not thinking in the 10/hour range. I did not also lay out the entire duties of the Innkeeper. We would handle marketing. A part time person would be provided on weekends. The person worked with the previous owners who are my partners. They have stated that if you get a full house on the weekend it is definitely not doable by one person and turn out a decent product. Maintenance would be handled by ny other staff. Obviously if a toilet is plugged at 3 am on Friday, they have to be able to do it. But anything like painting, tiling and all the other million things would be taken care of by us. The preivous owner has said he would go down every weekend for the first few months to help out.
We cannot provide a friendly greeting, a few minutes of chat later etc. These are things that make a stay at a BnB a really enjoyable experience. Innkeeper To Go, you are so right in that this hinges on that person. I read on here that one of the posters has partners and the poster is a minority partners. Maybe something like that would help.
I know that it as a bad market. I have a fair amount of grey hair so I am also pretty sure that this too will pass.

 

[Innkeeper To Go]

White Pine sounds like you are making the current economy work for you.
40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person. Add in the $800/month mtge payment and I am projecting a breakeven amount more or less.
We have made an offer that is less then one 1/3 of the 2006 selling price and less then half of the 2003 selling price. We also are using a projected gross about 20% less then the last full year we have in 2005. Occupancy rates in the hotel industry are at or near ten years lows right now.
I still have some time before the offer is reviewed to find a good reason not to buy. .

40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person.

You want a manager to work around the clock to make your business viable and you think $2500 is a fair salary?
So around $600 per week? Seriously?
.

40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person.

You want a manager to work around the clock to make your business viable and you think $2500 is a fair salary?
So around $600 per week? Seriously?

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.
Morticia - Yeah the price is what is even opening up this opportunity.
.

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.

Which just returns us to the primary question. Is this a good idea?
And I return to my first response.
No.
Property management has no bearing whatsoever on the tremendous work that is done by an innkeeper around the clock. A good inn manager never really has a day off. He/she is working 7 days a week, often 10-12 hours a day.
The reason you are providing housing on-site is to provide benefit for you, not the manager. Do you think it's an extra bonus for them that guests ring the bell when locked out of their room or just need assistance in the night? Again, comparing the apartment provided to an apartment manager to the housing provided to an onsite inn manager is comparing apples and oranges.
Flipping a B&B in good times is a risky proposition. Thinking that it's possible to turn around a B&B that went into foreclosure and to flip at profit in 2010 is naive. Thinking that the appropriate pay for a managing innkeeper to do that work is in the range of $10 an hour (assuming the innkeeper is successful at ONLY working 60 hours a week) is crazy.
There are great deals out there, no doubt about it. They'll tempt the most risky of opportunists, no doubt.
But the work to be done to restore an inn to profitability is no picnic. The innkeeper you would hire deserves owner-partners who understand and appreciate the enormous contribution he/she would be making.
It's pretty clear to me that you don't.
.

I admit, I thought the room and board added to the salary not detracted. So I was not thinking in the 10/hour range. I did not also lay out the entire duties of the Innkeeper. We would handle marketing. A part time person would be provided on weekends. The person worked with the previous owners who are my partners. They have stated that if you get a full house on the weekend it is definitely not doable by one person and turn out a decent product. Maintenance would be handled by ny other staff. Obviously if a toilet is plugged at 3 am on Friday, they have to be able to do it. But anything like painting, tiling and all the other million things would be taken care of by us. The preivous owner has said he would go down every weekend for the first few months to help out.
We cannot provide a friendly greeting, a few minutes of chat later etc. These are things that make a stay at a BnB a really enjoyable experience. Innkeeper To Go, you are so right in that this hinges on that person. I read on here that one of the posters has partners and the poster is a minority partners. Maybe something like that would help.
I know that it as a bad market. I have a fair amount of grey hair so I am also pretty sure that this too will pass.
.

I know that it as a bad market. I have a fair amount of grey hair so I am also pretty sure that this too will pass.

Yes, this will pass. But the B&B industry will not return to 2006. Not ever. So hinging your business plan on that is just not viable. Will. Not. Happen.
You're right, you can't provide a friendly smile from afar. Unfortunately, you can't manage a small inn effectively from afar either. You need an onsite manager who knows the immediate community and has exemplary marketing skills as well as superior cooking skills. They must also be a gracious host.
Is it enough for you to take care of marketing and do the hiring and just put a smiling face at the desk?
No.
Can you exploit someone to do the work? Probably. But you won't make a profit and the inn won't succeed.
In my opinion, what you're planning is not only not viable financially, it's woefully inadequate in terms of industry knowledge and applicability.

 

[gillumhouse]

I have to say, I am am entertaining the idea of renting to cover the mtge for a few years and then seeing if I couldn't sell it for more then I paid. If the Bed and Breakfast does not add value at 5 rooms and under, I will have put 50 to 100k into furniture that has not added value and certainly could not be financed by the new owner.
From a real estate viewpoint, I see being able to hold it for a while as the key. A beautiful 100 plus year old Victorian house would not be available for this price unless it was because of the current market. The house is absolutely stunning. But as many of us know, a 100 year old house does not "wait" very well. Even the two years it was closed as a BnB and then foreclosed have taken a huge toll and it is only going to get worse. That is why this whole plan came about at all. The house is definitely under valued at this price. But in this market it is tough to prove that. So I need a way to get it to 2012 so that I can prove it.
Other thing - So the feeling is my salary/compensation is way understated at $2500? I was thinking of a bonus when the place sells. I have stated several times that I see this person as the key to whole thing. Any business runs on the strength of its weakest employee.
I am also very appreciative that all of you are willing to give of your valuable time to share your ideas on this with me. I know it is not the normal aspiring innkeeper thread. .

Excuse me, the more you post as to what you think is fair compensation, yada-yada and open it for 2 years to sell it at a profit makes me want to in a word - puke. You have no idea what we do and why. You friends may have owned a B & B but they SOLD OUT! THEY DO NOT WANT TO DO IT! There is a reason for that. They know it is not for them!
This is a business you either love, hate and get out, or love but know when it is time to move on for whatever reason - my reason is the only way I can guarantee my City has a B & B is for me to sell it as a B & B.
I cannot speak for anyone else, but you insult ME and what I do with your - well we will put this much into it and hire someone to run it and flip it in 2 years for a profit. From my point of view, your attitude toward this creates defeat from the beginning. Businesses that flourish are business that someone put their heart and soul into. 9 to 5 never built a viable business. B & B is hospitality and hospitality in not found in the counting house. It comes through to the guests when it is there and it screams to the guests when it is not there because they know who has it and who doesn't.

 

[The Farmers Daughter]

White Pine sounds like you are making the current economy work for you.
40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person. Add in the $800/month mtge payment and I am projecting a breakeven amount more or less.
We have made an offer that is less then one 1/3 of the 2006 selling price and less then half of the 2003 selling price. We also are using a projected gross about 20% less then the last full year we have in 2005. Occupancy rates in the hotel industry are at or near ten years lows right now.
I still have some time before the offer is reviewed to find a good reason not to buy. .

40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person.

You want a manager to work around the clock to make your business viable and you think $2500 is a fair salary?
So around $600 per week? Seriously?
.

40k net was before the manager and i am guessing we have to give 80% away to the manager($2500/month plus room and board, too high? low?) to get a good person.

You want a manager to work around the clock to make your business viable and you think $2500 is a fair salary?
So around $600 per week? Seriously?

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.
Morticia - Yeah the price is what is even opening up this opportunity.
.

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.

Which just returns us to the primary question. Is this a good idea?
And I return to my first response.
No.
Property management has no bearing whatsoever on the tremendous work that is done by an innkeeper around the clock. A good inn manager never really has a day off. He/she is working 7 days a week, often 10-12 hours a day.
The reason you are providing housing on-site is to provide benefit for you, not the manager. Do you think it's an extra bonus for them that guests ring the bell when locked out of their room or just need assistance in the night? Again, comparing the apartment provided to an apartment manager to the housing provided to an onsite inn manager is comparing apples and oranges.
Flipping a B&B in good times is a risky proposition. Thinking that it's possible to turn around a B&B that went into foreclosure and to flip at profit in 2010 is naive. Thinking that the appropriate pay for a managing innkeeper to do that work is in the range of $10 an hour (assuming the innkeeper is successful at ONLY working 60 hours a week) is crazy.
There are great deals out there, no doubt about it. They'll tempt the most risky of opportunists, no doubt.
But the work to be done to restore an inn to profitability is no picnic. The innkeeper you would hire deserves owner-partners who understand and appreciate the enormous contribution he/she would be making.
It's pretty clear to me that you don't.
.

Plus room and board of about 1k/month in value maybe a bit higher. But that is the idea. I have a person who runs my rental property business for me and makes just a bit more then that. He has to supervise 3 other people too.

Which just returns us to the primary question. Is this a good idea?
And I return to my first response.
No.
Property management has no bearing whatsoever on the tremendous work that is done by an innkeeper around the clock. A good inn manager never really has a day off. He/she is working 7 days a week, often 10-12 hours a day.
The reason you are providing housing on-site is to provide benefit for you, not the manager. Do you think it's an extra bonus for them that guests ring the bell when locked out of their room or just need assistance in the night? Again, comparing the apartment provided to an apartment manager to the housing provided to an onsite inn manager is comparing apples and oranges.
Flipping a B&B in good times is a risky proposition. Thinking that it's possible to turn around a B&B that went into foreclosure and to flip at profit in 2010 is naive. Thinking that the appropriate pay for a managing innkeeper to do that work is in the range of $10 an hour (assuming the innkeeper is successful at ONLY working 60 hours a week) is crazy.
There are great deals out there, no doubt about it. They'll tempt the most risky of opportunists, no doubt.
But the work to be done to restore an inn to profitability is no picnic. The innkeeper you would hire deserves owner-partners who understand and appreciate the enormous contribution he/she would be making.
It's pretty clear to me that you don't.

I completely agree.

 

[toddburme]

Sorry some of you feel that way. It was not my intention to insult you guys or the industry. I gathered early on that this is a labor for love many if not all of you. I get that. So I can see how a person purely seeking to profit from a real estate transaction is not your idea of a good time.
Like I said I do appreciate your time and help and hopefully some of you enjoyed the mental challenge of thinking about the idea.

 

[Breakfast Diva]

Todd,
Personally, I'm not insulted by what you have posted. What I am though is scared for you. The overwhelming majority of the responses about your venture are negative. That's because we really know what it takes to make a successful go of this business. I'm not sure that you've really heard us.
When a B&B is created and goes out of business for whatever reason, it not only affects the people who put their money, sweat & soul into it, but it also hurts the entire industry. There are many, many b&bs right now that have closed, gone into foreclosure or are very close to it. The banks now don't want to loan money and it hurts all of us. We don't need another failure out there.
If you came on here and told us the same scenario except that it was you or your partner who's dream or ambition it was to create this b&b, live in it and run it, I'm sure we would have been very encouraging to you. This is an excellent time for someone with money to buy a house for little money and create a b&b. Unfortunately, the risk is enormously high in the scenario you've given.
My best advice is if you want to flip, buy the house yourself, rent it for several years, get some income out of it and sell it at a profit when the market gets better.

 

[toddburme]

I heard you guys. No worries on that. The nice thing about dealing with banks is that they are slow. So it gives you days even weeks sometimes to figure out the best strategy.
Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one.

 

[Innkeeper To Go]

I heard you guys. No worries on that. The nice thing about dealing with banks is that they are slow. So it gives you days even weeks sometimes to figure out the best strategy.
Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one. .

Lots of ideas on this one.

Lord help us all.

 

[egoodell]

I heard you guys. No worries on that. The nice thing about dealing with banks is that they are slow. So it gives you days even weeks sometimes to figure out the best strategy.
Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one. .

Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one.

This is going to be interesting. A B&B normally makes just enough to support the owners with nothing left over. They make their profit when they retire and sell - if the market is not what it is today.
So - you're going to give the person doing all the work 24/7 half the income. Who is going to pay the license fees, taxes, insurance, upkeep of the property?
How is the innkeeper going to pay for their health insurance? I hope we get the name of this place so we can follow the antics.
RIki
RIki

 

[Samster]

I heard you guys. No worries on that. The nice thing about dealing with banks is that they are slow. So it gives you days even weeks sometimes to figure out the best strategy.
Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one. .

Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one.

This is going to be interesting. A B&B normally makes just enough to support the owners with nothing left over. They make their profit when they retire and sell - if the market is not what it is today.
So - you're going to give the person doing all the work 24/7 half the income. Who is going to pay the license fees, taxes, insurance, upkeep of the property?
How is the innkeeper going to pay for their health insurance? I hope we get the name of this place so we can follow the antics.
RIki
RIki
.

Well said, Riki!

 

[egoodell]

I heard you guys. No worries on that. The nice thing about dealing with banks is that they are slow. So it gives you days even weeks sometimes to figure out the best strategy.
Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one. .

Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one.

This is going to be interesting. A B&B normally makes just enough to support the owners with nothing left over. They make their profit when they retire and sell - if the market is not what it is today.
So - you're going to give the person doing all the work 24/7 half the income. Who is going to pay the license fees, taxes, insurance, upkeep of the property?
How is the innkeeper going to pay for their health insurance? I hope we get the name of this place so we can follow the antics.
RIki
RIki
.

Well said, Riki!
.

Well said, Riki!

Well I got annoyed. We built our B&B ourselves so it was a fraction of what it would have been to have built or purchase one already running. I do the website myself. We only have two rooms right now, but with the wine tours it's like running 5 rooms as far as time and income.
And I still work mon-fri at UVA for our health insurance. I could leave and take it with me now, but we really need to put on the other wing. The next two rooms will pay the mortgage, and the fifth one will pay our health insurance.
Now, when we get there and have both of us available to run tours, we'll really start making some money.
He is just looking at what the rooms could make with no concept of the money that will be going out.
And who is getting loans to purchase B&Bs right now?????
RIki

 

[Samster]

I heard you guys. No worries on that. The nice thing about dealing with banks is that they are slow. So it gives you days even weeks sometimes to figure out the best strategy.
Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one. .

Another one that came up as a interesting idea. I buy it and see if I can find someone who would want to live there and run it for half.
OR someone could pick the tiles etc and I could sell it to them once we fix it for a reduced rate as I no longer have my friend /partner in the picture.
Lots of ideas on this one.

This is going to be interesting. A B&B normally makes just enough to support the owners with nothing left over. They make their profit when they retire and sell - if the market is not what it is today.
So - you're going to give the person doing all the work 24/7 half the income. Who is going to pay the license fees, taxes, insurance, upkeep of the property?
How is the innkeeper going to pay for their health insurance? I hope we get the name of this place so we can follow the antics.
RIki
RIki
.

Well said, Riki!
.

Well said, Riki!

Well I got annoyed. We built our B&B ourselves so it was a fraction of what it would have been to have built or purchase one already running. I do the website myself. We only have two rooms right now, but with the wine tours it's like running 5 rooms as far as time and income.
And I still work mon-fri at UVA for our health insurance. I could leave and take it with me now, but we really need to put on the other wing. The next two rooms will pay the mortgage, and the fifth one will pay our health insurance.
Now, when we get there and have both of us available to run tours, we'll really start making some money.
He is just looking at what the rooms could make with no concept of the money that will be going out.
And who is getting loans to purchase B&Bs right now?????
RIki
.

Annoyed doesn't cover the half of it for me. ;-)

 

[toddburme]

Annoyed? step away from the keyboard for a bit.
1/2 the net income. My partner could be blowing smoke but he has tax returns etc showing he made money before and his mtge was a lot bigger.
But as has been pointed out, it is 2010. I assume at some point every owner on here went from being aspiring to an innkeeper. I am sure this was a painful process. A few people on here talked about business plans and five year plans etc. So some people look on this as a business. Some people on here run BnB's for others so that part is not unheard of either. I lack experience but my partner does not. I saw the easy peasy comment. That is fine. I laid out my plan for criticism and that is what I got.
There is not BnB money to buy but there is mtge money and lots of BnB's sell that way with a side agreement on the remainder, either cash or owner financed etc.Also in a few years hopefully the market will be better. I picked this forum after reading at a few as i could see the passion you guys have for this business/lifestyle. My partner is very excited about getting a second chance at this BnB. A opportunity with a little more money to position it correctly at first, a lower payment to cover once it is running and lack of need for immidiate cash flow to allow for more staff.
Would you want to buy back your BnB if this situation was presented to you?
PS if this thread is really upsetting to anyone that was not my intention. I have to admit, I sort of enjoyed my brief flash in the spot light as Gordon Gekko. On the other hand, no one is really enjoying the real estate downturn. And I think we would all agree that foreclosure is not a happy thing.

 

[Breakfast Diva]

Annoyed? step away from the keyboard for a bit.
1/2 the net income. My partner could be blowing smoke but he has tax returns etc showing he made money before and his mtge was a lot bigger.
But as has been pointed out, it is 2010. I assume at some point every owner on here went from being aspiring to an innkeeper. I am sure this was a painful process. A few people on here talked about business plans and five year plans etc. So some people look on this as a business. Some people on here run BnB's for others so that part is not unheard of either. I lack experience but my partner does not. I saw the easy peasy comment. That is fine. I laid out my plan for criticism and that is what I got.
There is not BnB money to buy but there is mtge money and lots of BnB's sell that way with a side agreement on the remainder, either cash or owner financed etc.Also in a few years hopefully the market will be better. I picked this forum after reading at a few as i could see the passion you guys have for this business/lifestyle. My partner is very excited about getting a second chance at this BnB. A opportunity with a little more money to position it correctly at first, a lower payment to cover once it is running and lack of need for immidiate cash flow to allow for more staff.
Would you want to buy back your BnB if this situation was presented to you?
PS if this thread is really upsetting to anyone that was not my intention. I have to admit, I sort of enjoyed my brief flash in the spot light as Gordon Gekko. On the other hand, no one is really enjoying the real estate downturn. And I think we would all agree that foreclosure is not a happy thing..

Would you want to buy back your BnB if this situation was presented to you?

Nope! If I sold my place it's because I'm done. When you're really an innkeeper and you've put your heart and soul in it, there comes a time when you just can't or don't want to do it anymore. When I sell, I'll cut the cord and won't look back. Time for a new adventure. If my place came back on the market after I sold, there is no way I would have the energy, desire or need to put that kind of dedication back into it. I think it just shows that your partner is willing to do this because he won't have to put his heart and soul and hands on experience to it again.

 

[white pine]

Annoyed? step away from the keyboard for a bit.
1/2 the net income. My partner could be blowing smoke but he has tax returns etc showing he made money before and his mtge was a lot bigger.
But as has been pointed out, it is 2010. I assume at some point every owner on here went from being aspiring to an innkeeper. I am sure this was a painful process. A few people on here talked about business plans and five year plans etc. So some people look on this as a business. Some people on here run BnB's for others so that part is not unheard of either. I lack experience but my partner does not. I saw the easy peasy comment. That is fine. I laid out my plan for criticism and that is what I got.
There is not BnB money to buy but there is mtge money and lots of BnB's sell that way with a side agreement on the remainder, either cash or owner financed etc.Also in a few years hopefully the market will be better. I picked this forum after reading at a few as i could see the passion you guys have for this business/lifestyle. My partner is very excited about getting a second chance at this BnB. A opportunity with a little more money to position it correctly at first, a lower payment to cover once it is running and lack of need for immidiate cash flow to allow for more staff.
Would you want to buy back your BnB if this situation was presented to you?
PS if this thread is really upsetting to anyone that was not my intention. I have to admit, I sort of enjoyed my brief flash in the spot light as Gordon Gekko. On the other hand, no one is really enjoying the real estate downturn. And I think we would all agree that foreclosure is not a happy thing..

You know, as I read this I think you are really set to buy this place, and can afford to do so. Consensus here based on a myriad of experience is that it will not work out well as a money making proposition, especially as a B&B.
I don't think you will be able to convince anyone here it will . My thought is you have heard all the cautions here but --if you want it, buy it.

 

[Innkeeper To Go]

Annoyed? step away from the keyboard for a bit.
1/2 the net income. My partner could be blowing smoke but he has tax returns etc showing he made money before and his mtge was a lot bigger.
But as has been pointed out, it is 2010. I assume at some point every owner on here went from being aspiring to an innkeeper. I am sure this was a painful process. A few people on here talked about business plans and five year plans etc. So some people look on this as a business. Some people on here run BnB's for others so that part is not unheard of either. I lack experience but my partner does not. I saw the easy peasy comment. That is fine. I laid out my plan for criticism and that is what I got.
There is not BnB money to buy but there is mtge money and lots of BnB's sell that way with a side agreement on the remainder, either cash or owner financed etc.Also in a few years hopefully the market will be better. I picked this forum after reading at a few as i could see the passion you guys have for this business/lifestyle. My partner is very excited about getting a second chance at this BnB. A opportunity with a little more money to position it correctly at first, a lower payment to cover once it is running and lack of need for immidiate cash flow to allow for more staff.
Would you want to buy back your BnB if this situation was presented to you?
PS if this thread is really upsetting to anyone that was not my intention. I have to admit, I sort of enjoyed my brief flash in the spot light as Gordon Gekko. On the other hand, no one is really enjoying the real estate downturn. And I think we would all agree that foreclosure is not a happy thing..

I assume at some point every owner on here went from being aspiring to an innkeeper.

An aspiring is someone who aspires to be an innkeeper.
That would not apply to someone who wants to purchase a foreclosed property and thinks he can just put a smiling face at the front desk and then flip for a profit.
That's an investor at best. Opportunist might be a better description. Either way, it's neither an innkeeper nor an aspiring.

 

[egoodell]

Annoyed? step away from the keyboard for a bit.
1/2 the net income. My partner could be blowing smoke but he has tax returns etc showing he made money before and his mtge was a lot bigger.
But as has been pointed out, it is 2010. I assume at some point every owner on here went from being aspiring to an innkeeper. I am sure this was a painful process. A few people on here talked about business plans and five year plans etc. So some people look on this as a business. Some people on here run BnB's for others so that part is not unheard of either. I lack experience but my partner does not. I saw the easy peasy comment. That is fine. I laid out my plan for criticism and that is what I got.
There is not BnB money to buy but there is mtge money and lots of BnB's sell that way with a side agreement on the remainder, either cash or owner financed etc.Also in a few years hopefully the market will be better. I picked this forum after reading at a few as i could see the passion you guys have for this business/lifestyle. My partner is very excited about getting a second chance at this BnB. A opportunity with a little more money to position it correctly at first, a lower payment to cover once it is running and lack of need for immidiate cash flow to allow for more staff.
Would you want to buy back your BnB if this situation was presented to you?
PS if this thread is really upsetting to anyone that was not my intention. I have to admit, I sort of enjoyed my brief flash in the spot light as Gordon Gekko. On the other hand, no one is really enjoying the real estate downturn. And I think we would all agree that foreclosure is not a happy thing..

1/2 the net income. My partner could be blowing smoke but he has tax returns etc showing he made money before and his mtge was a lot bigger.
But as has been pointed out, it is 2010. I assume at some point every owner on here went from being aspiring to an innkeeper. I am sure this was a painful process. A few people on here talked about business plans and five year plans etc. So some people look on this as a business. Some people on here run BnB's for others so that part is not unheard of either. I lack experience but my partner does not. I saw the easy peasy comment. That is fine. I laid out my plan for criticism and that is what I got.

We would not buy our B&B - we built it so that we would not have to spend that kind of money. I'd build again.
And we are making great money - growing hugely every year.
But we still would not want to sell in this climate. Look around, there are plenty of B&Bs for sale all over the country for a song right now. The one you are considering is just another one. And I bet all of them are saying they are all making money too.
What you don't realize is what MAKES a B&B is ther personality of the owner/operator and their love of running their property. You have no interest in that, and believe me, the traveling public are not stupid. They will sense they are just another number.
But don't listen to us - you say you have no problems with financing and have it all figured out (and do you have ANY food and beverage or hotel experience? You thinking that you could put someone in there to run it for half the money tells me no) please, go ahead and buy it! Let us know the name, please!~ We would love to watch you flip it!
Just like all those people out there that are upside down on their mortgages right now...
Riki