This is a very common question prospective buyers ask, hence the explanation here. The answer is simple. Are you (buyer) going to pay their mortgage? No! So you want to see the operating expenses. The gross income less operating expenses before any debt service (mortgage) or owner compensation equals NOI (net operating income). And from …
Why don’t I see the Seller’s Mortgage on the Profit & Loss? Read More »
NO, YOU DON’T HAVE TO JUST DIVE IN! Your first step? To work with an experienced inn broker! We’ll discuss your financial situation, your professional and educational background and what experience you have, indirect or direct, that would lend itself to succeed in this business. You’ll discuss where your downpayment will come from, house sale, …
When a prospective inn buyer asks: “Where do I start?” Read More »
The former inn – which is really just a house now without any business vs. an existing inn or going concern This is a question buyers ask me regularly. And the appeal understandable…the home likely already has the private ensuite baths you want, has the owner’s quarters, there wouldn’t be much in terms of renovations …
What about buying an inn that USED to be in operation some years ago? Read More »
Interest rates for commercial hospitality loans remain historically low. However, we are seeing them on the rise. The most favorable recent rates we saw in January ranged from 4.35% to 4.75%. Today we are seeing 4.8% to 5.25% or higher. The better your credit, the better the cash flow of the property, the better chance …
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 …
https://www.danamoos.com/understanding-the-financials.html One of the most important topics that buyers ask about is the financing of a hospitality property and how to qualify. And sometimes a buyer doesn’t know what to ask. I’ve gathered my most helpful blog posts on several topics and put them into a single web page on my website with links. Some …
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 …
An inn or bed and breakfast is a hybrid. Yes, it is a business that operates within a piece of real estate on a piece of land. But it is a commercial business with a residential component. So how does an appraiser go about valuing this hybrid business? It’s not always easy for the buyer …
With Acadia Cottages soon to settle, Ducktrap Motel around the bend, Inn on Carleton not too far behind and a classic coastal inn recently under agreement, 2014 is looking up for both buyers and sellers! These three I’ve named are all completely different types of lodging properties: near Acadia National Park, Acadia Cottages offers 11 …
Would you go to a cardiologist if you’re having problems with a swollen ankle? Or take your watch to be repaired by a seamstress?Then why would you go to a lender who doesn’t deal in the hospitality industry? A little dramatic, yeah, but you get my point! There are many reasons to speak with local lenders when …
The importance of using a local lender well versed in hospitality… 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’ 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.
