Wednesday, July 4, 2018

What about buying an inn that USED to be in operation some years ago?

 The former inn - which is really just a house now without any business vs. an existing inn or going concern

This is a question buyers ask me regularly. And the appeal understandable...the home likely already has the private ensuite baths you want, has the owner's quarters, there wouldn't be much in terms of renovations required (unless it's in a state of disrepair) to start back up, other than maybe decor, linens, kitchen wares, guest soaps, shampoos, dry goods, food, cleaning supplies, etc? What about the expense of a new website, reservation system and the marketing costs? And then the insurance, real estate taxes, business license? And what about the mortgage? And utilities? Landscaping and snow removal? These are fixed costs that you'll have from the start, without any revenue coming in. And don't forget about the attorney fees and accounting fees in the initial stages related to forming your business entities, etc. You can see how it can quickly add up.

After some time, you hope to have revenue coming in, but will the revenue in the early stages cover the expenses AND mortgage?

That's what the bank is going to ask. The bank isn't in the game of risk. They're also not in the game of innkeeping, should you fail. They'll look to you, the buyer, to put a greater amount down and have quite the stock of cash reserves at the ready.

But as a buyer, you aren't without risk either, even if you have the cash required. Although it once was an existing B&B, who can guarantee if it can pick up where it left off? Or if it can get back in the game and compete with the others in the area who never closed their operations? It may take a while to grow your guest database and keep them coming back as your new repeat guests. And you may assume that you'll attract the guests who used to stay at the inn back when. But they may have found new places that became their new go-to inns. 

And what IF you aren't able to get the business up enough to cover your expenses for a few years? 

Doesn't it seem that unless you have the finances required for what we really consider a startup business, isn't it less risky to buy an existing inn with a long financial history that you've reviewed with your advisors? On the other hand, often with high risk can come high reward. It just takes the funds to back such an acquisition. It's only money!

If you want to discuss the financials a bit further, don't hesitate to contact me.

Thursday, June 28, 2018

Price adjustment on this wonderful inn for sale in Freeport, Maine!

NEW opportunity with this substantial price adjustment! 

When a seller says they are motivated, there can be many things that affect their decision to change the price to be more favorable to attract a buyer. $100,000 certainly is favorable to a buyer! The sellers, Tori and Robin, have owned James Place Inn since 2006 and have enjoyed their times as stewards of this lovely inn. They raised a young daughter there for the majority of her life and are now wanting to enjoy her final high school years and prepare to launch her off to college.  As parents, the inn life and home life have been wonderful however, it is time to shift the balance more heavily to the home life and the opportunities that come along as children get older.

Many buyers aren't aware that a listing agent isn't permitted to disclose motivation for selling without permission. The same goes when we represent a buyer; we can't disclose motivation for buying without permission. But there isn't always a reason that would compromise either party's leverage.

For more details, visit the listing page on my website. Contact me with any questions or for more details.

Saturday, June 23, 2018

New on the market! Popular cottages at the doorstep of Acadia National Park

At a Glance
-17 units: 8 cottages, 3 inn style suites, 4 lodge/motel rooms and 2 fully appointed apartments (which can be rented nightly, weekly or long term).
-plenty of parking; guests can park directly next to or in front of their unit
-1.41 acres
-private well/all new septic
-Strong seasonal business from just mid-May to mid-October.
-real estate taxes $4,578 (2018)

Owner's quarters is in the main 1800s home, behind the office area, and accessible from a few locations. It is spacious and offers 1 bedroom, 1 bath, spacious kitchen open to the living room and dining room. There's a first floor staff bedroom with sink and a bathroom with shower is in the laundry room. It's a bonus to be able to house staff onsite. The layout is very conducive to both privacy and flow of business operations.

The current owners have put a great deal of money and effort into updating this wonderful property over the past three years. They have been just what Open Hearth Inn needed (or what we refer to as OHI). Check out the list of improvements above.

​The Open Hearth Inn was originally built by a member of one of Trenton's earliest families, circa 1820. Many of the original architectural details have survived, including the pumpkin pine floors, paneled wainscoting, and the large open hearth fireplace, complete with oven and iron crane.

As motorists took to the roads after World War II and the popularity of Acadia National Park developed, the demand for tourist lodging grew. The early 1800s Cape Cod style house was converted to a lodging business in the mid 1940s. The first cottages were constructed in these early years and thereafter each consecutive innkeeper added a new facet to the accommodations. More cottages were built in the 1950s, motel rooms in the 1970s, apartments in the 1990s, and original rooms in the house were converted to suites in 2004.

Maine cottages for sale are something buyers are often interested in but don't often find on the market. 

Don't miss the opportunity here!​

Offered at $1,100,000

Visit the listing on my website for more details

Financially Viable Business
Financials shared with signed NDA to qualified buyers

Thursday, May 24, 2018

Freeport, Maine...Did You Know?

While we all know that L.L. Bean and the outlets have long been anchors for Freeport, the village has evolved into so much more!

Did you know....
There are concerts in the park all summer?
There's an annual winter festival in the park sponsored by LLBean?
There are 2 state parks nearby?
You can go fishing from Winslow Park?
There are 3 new breweries coming to town?
There are already 2 breweries in town?
You can canoe and kayak?
You can take a scenic nature cruise or sailing trip from town?
Pineland Farms is only 10 miles away?
Portland is only 20 minutes away? (and can often be more expensive than Freeport)
There are a number of new small, specialty shops in town?
Bow Street Market (a wonderful small specialty market) in town offers items farmed, fished and made by locals all over Maine?

I haven't even mentioned the booming food scene which has reached Freeport too (not just Portland)!

See why we say Freeport is so much more than shopping?

James Place Inn is situated in a lovely residential neighborhood, just a side street off Main Street. Close enough to walk everywhere, but removed enough to enjoy the quiet. And with sidewalks up and down the entire length of Main Street, it makes walking around a pleasure. And the inn is just 3 miles to the waterfront.

With 7 rooms and a gorgeous 3 bedroom owner's house, this beautifully maintained inn checks off a lot of boxes for buyers. Check out the property offering below and contact me with any questions!

James Place Inn

Wednesday, May 16, 2018

The Limerock Inn is motivated to sell?

Yes, the Limerock Inn is motivated to sell….

Why, you ask? What’s wrong? Why are they anxious to get out? These are common questions from prospective buyers when they hear a seller is motivated. But in this case, there’s no negative reason. The owners Frank and PJ are 13 years in. That’s a pretty good stretch. And they’re definitely too young to retire. So they started thinking about what they’d do in the next phase of their lives. For Frank, an opportunity to get back into business lending fell into his lap. Too ideal to pass up, he accepted the position in 2017. Because Frank’s job requires some travel, that often leaves PJ to run the inn solo which can be pretty difficult when it’s busy, even as good as PJ is. So are they motivated to sell? Yes! It’s not really possible to fully devote yourself to two jobs and do them both really, really well. And Frank and PJ don’t want to offer anything less than 100%. 

So it’s time to hand over this grand Victorian inn to new stewards sooner rather than later. Check out this gorgeous painted lady Victorian. It checks off a lot of boxes.

p.s. if the beautiful wall covering or more period decor isn’t your thing, they’ll give a $50,000 seller assist to redecorate or use how you see fit. Now THAT’s an offer. Now bring yours!

One of the newly redecorated guest rooms with a more neutral tone on tone wall covering

View the listing details on my website.

Thanks for browsing!

Sunday, May 13, 2018

New Listing - A Boutique Motel in Wiscasset

A Boutique Motel

Another new listing just hit the market! This one offers high visibility on Route 1 in Wiscasset, just a few miles from Red's Eats and their famous lobster roll.

At a Glance
-8 acres of woodlands
-29 guest units plus 1 longer term vacation rental
-Workshop and Storage Building
-Laundry building with up to date commercial equipment, slop sink and storage
-Main lodge building with reception lobby, guest dining room/lounge with wood burning fireplace
-Firepits, picnic tables, croquet, bocce ball, badminton, and a half mile walking trail around the property
-Public water/sewer for the lodge and 29 units; septic for the cottage property
-Original cottages built circa 1915 (closest we can find through research), some were moved 1950 to another location offsite and then moved to this site in 1975; the motel and main building were built in 1971 with a second story added in 1972. At some point during the 1990s, the owner at the time moved the individual cabins onto shared foundations with a common roof, and at the same time added the two story picture window addition. In May 2017, the current owners finished the 6 cabins that were unfinished at the time they purchased, and turned them into 4 beautifully designed cabins.
-Great owner's 2 bedroom 1 bath apartment with large open living/dining room and brand new kitchen and sitting room.

Very strong seasonal business in place that could be extended if new owners wanted.

For more information, click on the presentation above or visit the listing page on my website.

Financially Viable. Financials disclosed to qualified party with signed non-disclosure agreement.

Offered at $1,425,000

Monday, May 7, 2018

New Listing! Lindenwood Inn in Southwest Harbor, Maine

Lindenwood Inn

A fantastic new listing just hit the market. Loads of goodwill comes with this inn - the innkeeper/owner has been there almost 27 years!

Check out the listing presentation and contact me if you wish to discuss or have any questions. This issue checks off a lot of boxes...

Offered at $1,700,000