Posted by Surfer Girl on August 07, 2000 at 11:07:28:
Eric:
Thanks for your response! I am just checking into things now, and needed the advise to see if this thing was remotely possible. Will post again later when I get more info.
Need help FAST! - Posted by Surfer Girl
Posted by Surfer Girl on August 07, 2000 at 06:00:54:
I am a stay at home mom, with lots of time, but very little money! I am also new to all this, and need some advise! I am interested in purchasing an investment property. The property I have in mind is a 2 story home selling for $55,000, in a small community that is quickly expanding. The owner of the investment property is willing to finance (with a 10% down payment). The property is located in a prime spot for a Bed & Breakfast (close to town and an Interstate), with lots of ammentities in the community. My idea is to purchase this property to turn into a Bed & Breakfast. MY assets at present are: The property I presently live on (30 acres of land with a mobile home -free & clear!- no mortgage!, my car, and I have no credit card debt. My worth is about $21,000-$33,000. My question is: How & what would be the best way to go about financing the purchase of the property and B&B without taking the chance of loosing the security of my present “home”. I have excellent credit with my bank, however, if the owner of the property is willing to carry the note, with a 10% down payment…??? Bank…?Owner Finance…? Please HELP!?
B&B equals a J.O.B. to me - Posted by Jim IL
Posted by Jim IL on August 08, 2000 at 15:04:38:
Surfer Girl,
Are you REALLY looking for a J.O.B., or do you want your money to work for you?
A B&B may sound nice and all, but think of all the things you will need to do with it.
All the hours of work involved are what turns me off.
What is nice about investing in RE for me is the freedom.
Rent and payments are still going to come in even while you sleep.
You can then continue to be a “Stay at home mom” and do the important things in life with your children.
Many of my friends now call me lazy because I set my own schedule and my boss (ME) lets me off work anytime I want.
I disagree with the “Lazy” label, and tell them all that each and every dollar I have is working for me, therefore I have several employees.
Why not buy a few homes that generate the same income the B&B would make per month and relax.
Too many others out there who want J.O.B.'s for me to cramp there style.
Besides, FREEDOM is what this REI stuff is all about.
And, it sure is fun to tell people you meet that you are “happily unemployed”.
You should have seen the look I got from my new soon-to-be inlaws when they asked what my “J.O.B.” was and I said, “I have none”!
LOL!!
What a rush,
Jim IL
Re: Need help FAST! - Posted by Charles
Posted by Charles on August 07, 2000 at 22:53:01:
You call this a 2 story home so I assume it is not being used as a bed & breakfast now. Along with the purchase price, you should find out if it is going to cost you $$$ to meet codes for that use, renovations, etc.
Re: Need help FAST! - Posted by scott in va
Posted by scott in va on August 07, 2000 at 17:04:00:
You say he is selling for 55,00 is there any existing mortgage or liens on property.Also does the seller need his 10% up front or would he be willing to spread it out over time.Make sure you do due dilligence on the property and figure all the monthly expenses to make sure you have a good cash flow.
Re: Need help FAST! - Posted by dewCO
Posted by dewCO on August 07, 2000 at 13:11:34:
Make sure the zoning will allow a B&B too. In the mean time you can write a contract subject to you being able to check all of this out, in say 2 weeks.
You should be able to get the cash by opening a line of credit or taking out a 2nd with your equity in your free and clear property. Good luck, sound like you really need to know what you’re doing, as eric said.
Re: Need help FAST! - Posted by eric-fl
Posted by eric-fl on August 07, 2000 at 08:48:20:
The first thing you should do is, stop. Look before you leap. Have you assessed the B&B business to ensure that it will meet your objectives? I know from where I speak, I considered this very briefly a few years ago myself. I say very briefly, because the more I looked at it, the worse it looked. B&B isn’t just real estate, it’s a business on top of real estate, and a unique one at that. The basic jist is, you need to achieve a “critical mass” in order to be profitable, which, according to most B&B operators, is nine rooms. That’s a lot, and to me is really more of an Inn than a B&B. There is more information on this in the Home Based Business books by Paul & Sarah Edwards, on any booksite or bookstore. If you are getting in for less than that, then really it might be better to look at it as a supplement to your mortgage payment, rather than a source of disposable income. If you have income from other sources, such as a spouse that works, then it could still be worthwhile - just do your research and go in with your eyes open.
Re: B&B equals a J.O.B. to me - Posted by JohnBoy
Posted by JohnBoy on August 08, 2000 at 23:13:31:
New soon-to-be inlaws??? Man Jim, you don’t waste any time!!! LOL