Hi,
I am new to the forum. Been reading a ton and really like the practical common sense that I am seeing. So I thought I would see what everyone thought of my idea.
My friend bought a BnB in about 2003 and sold it in 2006 for a nice profit. He increased bookings from 20% to 40%. Did very few improvements to the actual property but did well.
His first BnB was foreclosed on( the new owners had personal problems) and is for sale for a 1/3 of what he sold it for in 2006. BUT it is now just a big house. Everything was removed. The work seems very minimal. His opinion was we could buy all the stuff we need in a month and get her open in about three. 4 suites with another room (bath is down the hall). 50k of furnishings is the budget for 100 year old Victorian to do the 5 rooms plus commons. We would recreate what he had before and resell it. Start to finish 2 years.
I assume 2010 is different then 2006. He increased bookings by embracing the web. Well i assume everyone does that now. With this economy, have rates dropped? Have bookings thinned? resale prices dropped ( a given)? Financing still hard to get?
I know nothing of the BnB business and will probably not have time to be helpful. He and his wife who have run both of their BnB's have full time jobs so we would hire the heavy lifting. This seems the big oops. If we do not get a "Great Person", this whole thing will not work. Having an employee who also would live there seems like a nightmare if it does not work out.
So that is the plan. And thanks for reading this far.
I am new to the forum. Been reading a ton and really like the practical common sense that I am seeing. So I thought I would see what everyone thought of my idea.
My friend bought a BnB in about 2003 and sold it in 2006 for a nice profit. He increased bookings from 20% to 40%. Did very few improvements to the actual property but did well.
His first BnB was foreclosed on( the new owners had personal problems) and is for sale for a 1/3 of what he sold it for in 2006. BUT it is now just a big house. Everything was removed. The work seems very minimal. His opinion was we could buy all the stuff we need in a month and get her open in about three. 4 suites with another room (bath is down the hall). 50k of furnishings is the budget for 100 year old Victorian to do the 5 rooms plus commons. We would recreate what he had before and resell it. Start to finish 2 years.
I assume 2010 is different then 2006. He increased bookings by embracing the web. Well i assume everyone does that now. With this economy, have rates dropped? Have bookings thinned? resale prices dropped ( a given)? Financing still hard to get?
I know nothing of the BnB business and will probably not have time to be helpful. He and his wife who have run both of their BnB's have full time jobs so we would hire the heavy lifting. This seems the big oops. If we do not get a "Great Person", this whole thing will not work. Having an employee who also would live there seems like a nightmare if it does not work out.
So that is the plan. And thanks for reading this far.