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Updated almost 10 years ago on . Most recent reply
![Bryan Hylenski's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/273212/1694888064-avatar-bryanh3.jpg?twic=v1/output=image/cover=128x128&v=2)
Purchasing a Business and Property - B&B
Hello All,
I have found my dream property and investment. It's a small B&B, that has positive cash flow and has opened their books to us, everything looks great and we would live on the property and run the business. But, I have only every worked in residential mortgages. My business owns 4 other properties, but these are passive income rentals.
This business would be purchased Turnkey style, they are fully operatiional and net approximately 60,000$ a year. The property costs 700K. I have 20% to put down, but I don't know how to secure the rest of the financing thru a lender. The owner is also willing to help with some of the financing, but since I will be buying the property, don't i have to finance 100% of the property thru a lender or can I do some thru a bank and some privately thru the current owner.
Can someone point me in the right direction? Help me ask the right questions, etc.
Most Popular Reply
![Joel Owens's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/51071/1642367066-avatar-blackbelt.jpg?twic=v1/output=image/crop=241x241@389x29/cover=128x128&v=2)
"This business would be purchased Turnkey style, they are fully operatiional and net approximately 60,000$ a year."
I would want to know if this is with the owner working in the business actively or not. In other words if 60k net is with the owner putting in 30 to 40 hrs a week you have a hobby not a business. To be absentee owner where you have time for your other investments you would have to put a manager in place at 40k to 50k a year. Any minor tweak in expenses and you are now breaking even.
A B & B takes up a ton of time. I don't buy anything that requires me to be there. Has to make great money with management in place as an absentee owner. Owner / operator is a non-starter for me.
- Joel Owens
- Podcast Guest on Show #47
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