What is the difference between the ‘down payment‘ and earnest money (sometimes referred to as EM or EMD – earnest money deposit) and when they are owed? Your EARNEST MONEY is a good faith deposit that is held in an escrow account to demonstrate to a seller your commitment to finalize the deal, and how […]
Down Payment vs Earnest Money Read More »
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
What about Financing Metrics?Cap Rates, GRM, DCR, RevPar, ADR, COC, oh my! Read More »
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
A frequently asked question: how do I qualify? Read More »
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
Allocation of Assets – Like a Hamburger??? Read More »
I was looking at some numbers this morning (despite it being a Sunday, my mind just won’t rest) and thought I’d share the general basis of determining value for hospitality properties. And this information is helpful to buyers and sellers. Here you first see a cash flow scenario based on three fictitious properties to see if
Understanding The Numbers Read More »
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
Residential vs Commercial Real Estate: Two Entirely Different Animals Read More »
🏡 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
Buyers Ask: How did the seller come up with the price? Read More »
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
Great article on the truth behind ROBS (Rollover for Business Start-up)… Read More »
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
Aspiring Innkeepers: Interested in Controlling Your Own 401K? Read More »
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
What is THE best way to prepare your inn for sale that affects value? Read More »
The rates we have been seeing in hospitality lending in Maine for years have been relatively and historically low for commercial loans. However, they keep changing very quickly. Contact me to discuss current rates.
Not everyone who is a licensed real estate agent is a Realtor®?
A Realtor® is a licensed real estate salesperson who belongs to the National Association of Realtors®, the largest trade group in the country. Realtors® are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics. Some Realtors® are brokers, while some are associate brokers or sales agents. These are varying levels of education, licensing and often responsibilities.
And hospitality ‘Consultants’ or ‘Brokers’ who are not licensed in the state of Maine are not held to any standards the way we are here as licensed Realtors® in Maine, where consumer protection is paramount.
I am a REALTOR®, a real estate professional who has taken the extra step to belong to the National Association of REALTORS®. Through membership, I abide by a Code of Ethics and have gained expertise to help you navigate one of the most complicated and important transactions you’ll make in your lifetime.
