Inn Financing

How do I finance a bed and breakfast?

Wow! That is a big question. Here is a short answer: If you are purchasing a bed and breakfast you will likely obtain financing from a bank. A small B&B with modest income is generally viewed as real estate: loan approval will be based on real estate value and your personal income and assets (your ability to repay the loan). [...]

How Should B&B Inn Owners Approach Their Finances?

Is This Your Team?   Banks, buyers, and B&B owners need the same thing: complete and accurate financial information. No one can accept “Dazed & Confused” profit and loss statements and tax returns. The importance of this can’t be overemphasized. As my colleague Scott Bushnell once said: “Building buyer-seller or lender-owner trust is critical. So how is it done? Like a [...]

What Do Lenders Want?

Buying or selling an Inn or Bed and Breakfast can be a complex process. The purchase of a bed and breakfast almost always requires that buyers obtain mortgage financing. Lending practices have certainly changed since the 2008 “crash”. The good news is that mortgage rates remain low and many lenders like Bed and Breakfast Inns. So what do lenders’ want [...]