Purchase of B&B without down payment - Posted by Pat

Posted by Kerstin on April 04, 2007 at 06:51:43:

It depends on the circumstances (i.e. where you are acquiring the funds from). I am assuming it is with a lender of some kind and you don’t have enough money for the down payment. If you borrow the money elsewhere or take on a partner, the lender will most likely want to know the source of the money and the exact terms. If it is a (second) loan, it may not fly with the lender. If it is a partnership, they may or may not want the partner on the application (depends on the strength of your credit and income).
Hope this helps. Good luck.

Purchase of B&B without down payment - Posted by Pat

Posted by Pat on March 29, 2007 at 10:26:45:

How can I purchase a B&B without a down payment? Am a transplant from SC to PA for 15 years – have had it! Want to expand floral and gift (side) business into a B&B with gift shop – Found several in NC, closer to elderly family, don’t have enough from 401K – should I defer the thought and get a job in my career or try and get a SBA or Grant loan, which is what I am trying to do. I’m risking 32 years of marriage and 28 years in a career.
Please advise. Thank you.

Re: Purchase of B&B without down payment - Posted by Kerstin

Posted by Kerstin on April 01, 2007 at 20:06:21:

Pat, I appraise commercial real estate for a living and have appraised a number of B&Bs, which means I’ve also looked closely at their financials. I really think you should only buy a B&B if you love the idea of having one–not for the money. You have a roof over you head and food on the table, and little else left over after you pay the mortgage and other bills at the end of the day. You’ll be working when everybody else is off. There is plenty of physical labor involved (getting rooms ready, laundry, meal preparation etc), and the structures that house B&B’s tend to be money pitts. That being said, there are ways in which you could buy without money down (or with little money down)as with any real estate. The usual methods are seller financing, or taking on a partner for the equity portion of the investment, to name two. Good luck with it.

Re: Purchase of B&B without down payment - Posted by Pat

Posted by Pat on April 02, 2007 at 10:51:24:

Thank you for your response. I have submitted information to acquire funds for a B&B, but if I changed to say monies for an investment in a BoJangles, would new documents have to be submitted if the B&B was approved?