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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2. So you Want to Buy a Bed and Breakfast Inn
3. Owning a Bed and Breakfast Inn in Arkansas

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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Very few investors/entrepreneurs realize that they have the ability to self-direct their IRAs and 401k plans into real estate and other assets.   Most believe that there are only two options available to them if they want or need to access capital from their plan/s, namely, either borrowing from the account or withdrawing some portion of the assets.  Borrowing involves repaying the principal and interest and a withdrawal may be subject to a pre-distribution tax and penalties.  There is another way…

The Employee Retirement Income Security Act (ERISA),

Which created the IRA in 1974, places surprisingly few restrictions on how retirement money can be invested. Except for life insurance or collectibles-such as artwork or coins-IRA funds can be placed in just about anything. Tens of thousands of investors have switched their retirement savings to self-directed accounts since the stock market correction of 2000 and 2001. By some estimates, 3% of the $3.5 trillion held in IRAs is now in alternative investments-and the number is growing.

A Retirement Account Facilitator

can help you and your lawyers create the legal structure, such as a LLC (Limited Liability Company) or C Corporation that allows for checkbook control of the funds. They will form a new self-directed IRA and roll over existing 401(k)/IRA funds into the newly formed plan. The Facilitator, unlike the Custodian, doesn’t hold the funds, but usually contracts with a Custodian to hold the funds as part of the services provided. Custodians have become expert at structuring self-directed accounts and streamlining the once onerous paperwork.

Here is how it works…

A qualified facilitator of Self Directed Retirement Plans will form the new Corporation, which will own the business asset/s. The new retirement account invests directly into the new business by purchasing as much as 95% of its stock, providing the necessary capital to fund the down payment or even purchase the property. The new retirement account actually purchases the stock of a company you control, much as if your IRA were to purchase shares in a publicly traded company.   Here are the benefits… you do not re-pay a loan, which adds to overhead, and you will not incur tax liabilities and penalties.   Profits will flow into your retirement account and will be sheltered proportionate to how much stock it owns in the corporation and ultimately, any gain from the sale of the property will be tax deferred in the same way.
Lastly, when the cash requirement exceeds the capacity of just one investor or where multiple investors are required to invest in a single project, one self directed 401k plan may be created to accommodate multiple roll-overs.

Custodians don’t offer investment advice-that’s the self-directed part. No outsider can guarantee the soundness of your investment strategy and that can be as terrifying as it is liberating. As always, talking with a good financial advisor who is knowledgeable in your area of interest is important. Unless you have both time and capital to spare, you should be cautious before putting your entire nest egg into a new business. However, investors with a strong do-it-yourself streak and a compelling alternative investment strategy may want to consider joining the growing ranks of people who have decided to invest their retirement funds in themselves.

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