financing

What about Financing Metrics?Cap Rates, GRM, DCR, RevPar, ADR, COC, oh my!

So many financial terms….do you understand what you’re looking at? Your first step, other than working with me as your investment specialist, is to understand the metrics. GRM: GROSS REVENUE MULTIPLIER DCR: DEBT COVERAGE RATIO 8 CAP: 8% CAP RATE COC: CASH ON CASH ADR: AVERAGE DAILY RATE RevPAR: REVENUE PER AVAILABLE ROOM OCCUPANCY (ANNUALIZED …

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A frequently asked question: how do I qualify?

As a home buyer, you understand what it means to qualify for a home loan, your salary has to cover your current debt and a new house mortgage. The bank wants you to be within a certain debt to income ratio. Pretty simple. With buying a lodging/hospitality property, if you are leaving your job, how …

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Allocation of Assets – Like a Hamburger???

Mt Gay rum, Bacardi light rum, a splash of cranberry, splash of OJ, splash of coconut water, lime juice. Light and tropical! So I used a cocktail for my analogy (because it’s more appealing in a photo than a burger), but the original article referenced a hamburger. The writer attended a presentation where the subject …

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Residential vs Commercial Real Estate: Two Entirely Different Animals

I’m connected to a lot of real estate agents all over the country through social media. And I am always watching the ‘market’ around the country through the eyes of my fellow real estate agents, just to have an understanding on what’s going on. Though much of what goes on in the residential ‘market’ doesn’t …

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Buyers Ask: How did the seller come up with the price?

🏡 Offered at $1,500,000 🏨 A very common question I seem to get regularly from buyers is “how did you come up with the price?”. That’s a very good question. I don’t come up with a price, my sellers do. A listing agent advises, the client decides. What we do at The B&B Team is a very …

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Great article on the truth behind ROBS (Rollover for Business Start-up)…

We’ve had numerous clients utilize their 401k funds to purchase a lodging property, and one of the companies that facilitates this transaction (in accordance with IRS) is Guidant Financial. This can make a substantial difference in what buyers can afford to purchase. Guidant put out this great piece on busting the myths behind ROBS.  Using …

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Aspiring Innkeepers: Interested in Controlling Your Own 401K?

What if you could invest your 401k funds into your own business? It could potentially make a big difference in what you can afford to buy if your only source of downpayment had been from the equity in your home. If you’re interested in learning more about this option, and we are seeing it become …

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What is THE best way to prepare your inn for sale that affects value?

Other than getting the revenue up as high as possible, there is something to consider before preparing your inn for sale that will greatly affect value. While maintaining the physical condition of any property (whether commercial or residential) is always important, when it comes to selling a business, the tax return is king. And let’s …

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