Advertising and Getting ahead

You will need signs on highways with directions to your B&B/Inn. Set aside approximately $1,500 plus a year for advertising. Do not forget additionally your web site and keep it updated. SEO for Search Engine Optimization is a must today to be found on the Internet.  Purchasing commercial bedding, including mattresses, blankets, sheets that will last for at least 5 or 6 years. Since you are now a commercial business owner you will need an office with business supplies and the ability to accept credit cards. Remember the credit card companies charge a fee to accept payment include this in your list of start up cost. In most areas there are legal fees, permits and licenses. Make sure your kitchen is updated and you have smoke detectors in every room.

Redecorate

You may want to redecorate or feng shui your B&B/Inn. You will need a professional for your web site, do not ignore the advantages. Professional photo’s done by a studio or student of photography is a must for your web site, brochures and for your signs. Should you not have a paid for property contact a professional B&B/Inn Financial Company to help you calculate the expenses of purchasing and making sure your B&B/Inn is the best in the area.
Wishing you good luck and hope this little bit of information has been helpful.

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Rates are low but may not be for much longer…

Thinking of selling anytime soon?

If your exit horizon is within the next few years, and you want to do all you can to enhance the value of your inn and make it more attractive to potential buyers, here are a few ideas to consider according to Rick Newman, Managing Partner of Commercial Capital Network:.

• Refinance now into an assumable mortgage* while rates are low!
• Be in a position to offer a potential buyer a 5.25% to 6.25% assumable mortgage
• Increase your loan to fund improvements that will make your inn more attractive to potential buyers
• Access capital to expand guest rooms/facilities and increase revenue/NOI

Refinance into a loan that is large enough to make it attractive to a potential buyer.  The loan should be of an appropriate size relative to its net income before debt service, yet large enough to make it attractive to a buyer.  Remember, a buyer’s down payment may limit his or her ability to use the assumable provision without a seller-held second mortgage to make up the difference between the sales price/appraised value and their down payment.

You may call Rick at 570-595-2120 or

E-mail him at: ccnllc@gmail.com Website  www.bedandbreakfastfinancing.com

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Visit Arkansas and consider a business opportunity such as purchasing a Bed and Breakfast Inn. Own your own business and you will be surprised and happy you did.

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Previously we discussed the art of staging your B&B/Inn for Sale. Today we will get our wits together and decide if we want to For Sale By Owner (FSBO) or by a Professional Real Estate Agent. Now that everything is spotless and freshly painted, unnecessary things stored in a unit far enough away that the temptation of putting favorite items on display is not an option let’s sit down and figure out what exactly we should do and how we should do it. If you are a first time Bed and Breakfast Inn seller you may want to consult with several Commercial Real Estate companies.

Picking an Agent

Finding the right agent can be difficult task you need ask if your Realtor company has an agent who deals in Bed and Breakfast Inns or has experience in selling commercial properties. Ask if they would come to your Bed and Breakfast to give you an idea on the appraised value. Keep in mind that a detailed appraisal will be required and will run around $2,000 but will be in your best interest in deciding the purchase price.

Professional Photography on the Cheep

Once you have decided on an agent make sure you have those professional photo’s we discussed in a previous write up. Remember if money is an issue you may call your nearest high school, Junior College and ask for the photography department request several of their photographs major students. Then interview them and check their portfolio’s before hiring your photographer. You will be surprised at the talent these young photographers have.

Make sure you find out who holds the copyright; you or them because you need these photo’s for the Inns For Sale Directories you will be advertising on the Internet. It should take only a couple of days to have your photo’s in hand for advertising.

Posting on Directories

When posting your listing on a for sale directory make sure you write your description carefully using words the Search Engines will be looking for and make sure you write a short paragraph about the attractions in your area. Bed and Breakfast Inn For Sale Directories are an important tool and the cost is well worth the exposure.

Finding Financing

Maybe the most important issue to discuss with your agent is qualified buyers and how they will be financed. Knowing where the potential buyer can turn if they do not have enough cash will be the difference on your bed and breakfast selling or staying on the market.

There are Professional Financing agents just for just Bed and Breakfast Inns. It is good to get in touch with this individual early on because you want to know your options and it is their business to assist you as well as your potential buyer.

Today’s market is not by chance and it is smart marketing strategy to remember that commercial sales can be difficult even for the veteran B&B owner and it is in your best interest to gain any advantage you can.
These notes barely touch the surface and we strongly encourage you to research well and rely on the professionals for advise when selling your Bed and Breakfast Inn.

We want you to sell your successful business in a reasonable length of time. The time frame of owning a Bed and Breakfast Inn we have found is four to five years. We have also found that the age of the new buyers have dropped to the 35 to 48 year old group. Do not feel badly about selling and moving on to another adventure in your life. Wishing all of you who have made the decision to sell the very best.

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In Part one we will start with the cosmetics of your Bed and Breakfast
1. Curb Appeal/ Exterior Appeal
2. Interior Appeal

Curb Appeal (Exterior)

I decided to start with the curb appeal because maybe by the time I had finished the curb & the interior the flowers would have grown. I first started with the house it self, it was newly painted 2 years ago so I had a company come and pressure wash the exterior and the drive way. Then we went to Walmart for some beautiful plants & a few new shrubs. We did not need many but just enough to fill in and let the new owners know our B&B/Inn is well cared for.  Actually this was one of the things I loved to do each spring and to match the flowers with the color of the house. Back to weeding, edging and trimming  the front and backyards. There was just a few repairs we decided to have a re-seal on the driveway to make it look fresher so the pressure was a good idea before that was done. More plants on the porch and some hanging one. The porch floor should really be painted so we allowed a couple of days for that. Finally everything in place and we were happy.

Interior on the Cheap

Now for the interior. We started on the third floor (attic area where we store things instead of the garage) vacuumed, cleaned the windows and boxed up everything. Much neater. Second floor 5 bedrooms. Stripped every thing down, wipe down wallpaper, repainted the woodwork & had the carpets cleaned, windows washed inside and out. The same for the 3 bedrooms, dining room, living room and library on the main floor. Now the kitchen. Updated the faucets, new dishwasher (it was not replaced when we purchased) replaced all the cabinet knobs after the cabinets were cleaned there was a lot of glass so it went quickly. After every thing was done we purchased new bedding and towels for each room. Thanks to TJMAXX. Really does look nice. Well worth the money. We really did not spend that much, did a lot ourselves, hired professional and non professional help which kept us sane. Now that is over the appraisal. A B&B/Inn a few blocks away is for sale for $888,000 but our appraised at $1,100,000…we know the times are tough but we will just wait and see. Now I need to advertise on the Internet.

www.InnsforSale.com is good site and the listing is for one year and very affordable.

Check back for Part 2 where will go a little deeper into the marketing end of selling your B&B

If you have any questions or suggestions please feel free to fill out our comment box!

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Now is the time to invest in an existing Bed and Breakfast/Inn or small boutique hotel. The price of a Bed and Breakfast Inn has dropped drastically because of the economic situation but this is not always a bad situation for those who can invest in these great historical or newly built properties. Mortgage modifications and term extensions from the Treasury are doing their best to provide less expensive mortgage financing and are cutting interest rates to make monthly mortgage payments more affordable. B&B/Inn owners who will pay lower monthly payments will be more likely to to have money to meet their B&B/Inn payment, which will then increase the value of the bonds that are secured by these mortgages. Affordable and predictable monthly payments are what everyone is looking for as an investment and a Bed and Breakfast Inn is an opportunity to not only invest but see a return in years to come. You may or may not want to be the Innkeeper as well but this is income property.

You will find the return in what you offer your guests. The existing B&B/Inn you are looking to purchase may not offer spa, gift certificates, holiday specials, extended stays, honeymoon suites, but there are so many Specials that your imagination can come up with to make your Bed and Breakfast the one guest just cannot wait to visit or return over and over again. Also make sure that your web site is designed by a professional and your photo’s be the best. There are so many schools (high schools, jr. colleges & maybe trade schools in your area) that teach photography. Call ask for their photography department. Request from the teacher or professor 3 of their best students photography work, contact those students and ask for their portfolio and choose the one you feel does the best work in interior and exterior shots. Make a small contract for the price say $100 to $200 so they know you will purchase the photo’s  believe me they will be happy to be asked to take professional photo’s and you can give them credit on your web site. These photo’s are a selling point and valuable tool in the presentation of what you offer your guests on your web site. This will also mean will more financial return for you with great photo’s.
We encourage you to visit www.InnsForSale.com and to call Rick Newman for financial advise.

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