Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Commercial Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 10 years ago on . Most recent reply

User Stats

15
Posts
2
Votes
Bryan Hylenski
  • Longmont, CO
2
Votes |
15
Posts

Purchasing a Business and Property - B&B

Bryan Hylenski
  • Longmont, CO
Posted

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

User Stats

15,174
Posts
11,257
Votes
Joel Owens
  • Real Estate Broker
  • Canton, GA
11,257
Votes |
15,174
Posts
Joel Owens
  • Real Estate Broker
  • Canton, GA
ModeratorReplied

"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.

business profile image
NNN Invest
5.0 stars
3 Reviews

Loading replies...