inn financing

Pre-qualifying Commercial Buyers?

When we hear the question “have you pre-qualified your clients?” in a residential transaction it usually means that your buyer has been in touch with a lender, submitted their personal financial statement and received a “pre-qual” letter from the bank. This letter would state that based on the buyer’s financials and their job income, they […]

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Gross Income Should Not Include Lodging Sales Tax When Talking Value!

When our guests pay for their full stay, we include our local state sales tax. How this translates in accounting terms is that the cost of the room is revenue earned and the state lodging sales tax is a liability. The tax is not ours to keep, it’s ours to pay to the state each

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Using your 401K toward a hospitality purchase?

Are you aware that under the right circumstances you can rollover your 401K into purchasing a new business, such as a bed and breakfast? Check out R.O.B.S. (rollovers as business startups) and Self Directed IRA’s via Guidant Financial. This could make the difference in finding just the right inn and using your cash wisely! Be

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DCR – Three of the most important letters regarding inn financing

DCR – Debt Coverage Ratio  These three letters are one of the most important elements to understand when looking to finance a business (and let’s not forget that an inn IS a business). Simply, can the net operating income cover your debt as new owners?  Because although many buyers ask if the sellers have a

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Another reason to search for a property based on your available cash…

There are times when your agent might be aware of certain sellers who are willing to offer partial owner financing if they have to. So if you told your agent your price range is $700,000 – your agent should discuss with you what this means. In reality, this means you’d have to put down a

Another reason to search for a property based on your available cash… Read More »