Articles of Interest

The B&B Team of Professionals™ is a resource with a vast amount of cumulative experience with the unique lodging industry. Together, we provide you a broad array of original material. Please browse the categories below for articles, authored by our professionals, that will answer questions for you and, hopefully, provoke some new ones. Feel free to contact us or the article's author for additional information.

SPECIAL: "Turning Inns into Wedding Venues"
by Melana Yanos, NuWire Investor

Financial (articles relating to financing, valuation, etc.)
General (articles about the "process," the environment, working with professionals, etc.)
Innkeeping (articles about, what else, innkeeping!)
Marketing (articles to help innkeepers succeed through effective marketing)
Real Estate Terms (information about real estate and contract terms which are commonly used or misunderstood)
Blog Archives (Read what's being written on The Innkeeper's Resource blog and join the conversation)

FINANCIAL:

Financing the Purchase of a Bed & Breakfast by Rick Newman, Commercial Capital Network, LLC
All Bed & Breakfasts/Inns are unique by design; in fact, it is that unique quality that separates one Bed & Breakfast/Inn (B&B/Inn) from the next. Innkeepers invest their energy and capital over time to create a welcoming and hospitable environment that is unique to their community and valued guests.... [read the article] [back to top]

Financing Startup B&B's with an SBA Loan by Doug Carleton, Business Lenders, LLC
Financing for any startup business is hard for obvious reasons. A lender is gambling. It is betting that the owner of the startup business is going to be able to meet projections and pay back the loan. And even though most new business owners do their best, a high percentage... [read the article] [back to top]

Improve Your Chances For a Loan by Doug Carleton, Business Lenders, LLC
You might be thinking about buying or opening a B&B. Or, if you already own one, you might be considering expansion or a major renovation. Once you decide that you need to borrow money, whatever the need may be, the very best thing you can do to increase your chances for a quick approval is to gather your information together before you approach... [read the article] [back to top]

Inn Financing Without Tears by Peter Scherman of The B&B Team
You have been dreaming for years. Those glossy magazines and snazzy web sites with those wonderful, historic lodgings, glorious gardens, and inviting rooms are a regular mainstay. Your travels have taken you to places where you were greeted by strangers who treated you like old friends. You slept on feather quilts ... [read the article] [back to top]

Refinancing Your Inn -- Food For Thought by Peter Scherman of The B&B Team
When you’re thinking of refinancing to make capital improvements to your inn, there are many questions to ask. In the analysis of finance and construction costs, anticipated revenues, and future value of the tangible assets, one question that is often overlooked is this: How will improving the physical plant impact the future marketability of your inn when you sell? [read the article] [back to top]

Seller Financing, The Good, the Bad, and the Ugly by Doug Carleton of Business Lenders, LLC
Seller financing is often used in the bed and breakfast industry as a way to facilitate sales. It may be the first mortgage, or, it may be a second mortgage in conjunction with a first mortgage provided by a traditional lender. Let’s take a look at some of the benefits, pitfalls and risks – the good, the bad and the ugly – of seller financing. [read the article] [back to top]

Someday You Will Sell, Help Your Lender Say Yes by Doug Carleton of Business Lenders, LLC
Let your mind roam ahead in time for a moment. You have put your property on the market and you now have an offer. The buyer is going to apply for a mortgage. Let me suggest to you how what you are doing today, or not doing, can affect your borrower’s loan application and, possibly, your sale. When the time comes to sell, you can have a package...[read the article] [back to top]

Use Your IRA/401-K To Finance Your B&B Purchase
by Rick Newman of Commercial Capital Network, LLC
Very few investors/entrepreneurs realize that they have the ability to finance the purchase of a business with retirement funds. Most people believe that there are only two options available to them if they want or need to access capital from their plan/s, namely, either borrowing from the account or withdrawing some portion of the assets. Borrowing involves...[read the article] [back to top]

What Is An Inn Worth? How Lenders Look at Value by Doug Carleton of Business Lenders,LLC
How much an inn is worth is always a popular topic in the bed & breakfast industry. To an innkeeper who has invested capital, a number (maybe a lot) of years and, most of all, a tremendous amount of emotional and physical energy, the inn has one value. To a buyer an inn will probably have a different value, and it is not going to be the same for every buyer...[read the article] [back to top]

GENERAL:

Address to VAR's Delegate Body, September 21, 2001 by Peter Scherman of The B&B Team
The following is from an address by Peter Scherman to the Delegate Body of the Virginia Association of REALTORS® at the Annual Conference and Expo in Myrtle Beach, SC, September 21, 2001.
We are Realtors. We are Americans. Today there is not one amongst us who is the same as before September 11. We have been transfixed and transformed by the most inconceivable of realities. And yet, we are still Realtors, and we are still Americans. [read the article] [back to top]

Anatomy of an Inn Sale by Peter Scherman, The B&B Team, Inc.
Competitive athletes share an above-average understanding of the human body and how it works. They rely upon this understanding to prepare for their events by knowing how to stay healthy, increase their strength, and hone their skills to come out a winner. The athlete learns that her body is not just skin and muscle, but dozens of organs that must work together perfectly... [read the article] [back to top]

Innkeeping and Environmental Hazards by Peter Scherman, The B&B Team, Inc.
What do asbestos, formaldehyde, carbon monoxide, lead, pesticides, radon, UST’s, and toxic mold have in common? They are just a few of the things that real estate professionals (including inn brokers) deal with on a daily basis. If you’re wondering why real estate brokers have to deal with them, then you’ve never been sued by an unhappy buyer who discovered... [read the article] [back to top]

Knowing When To Ask For Help by Peter Scherman of The B&B Team
In life we all look for advice. We turn to doctors, lawyers, accountants and mechanics without a second thought. But surprisingly, too many people fail to seek out advice when it comes to the largest transactions of their lives. Did you ever hear about the couple that spent their life savings, about $1,000,000, on a bed & breakfast renovation and start-up, only to learn that it was worth barely half that amount when health forced them to sell? [read the article] [back to top]

Lead Paint: What's the Deal? by Peter Scherman of The B&B Team
The reality of selling a bed and breakfast is a complex one. There are offers, counter offers, discussions of price and terms, lawyers or agents to prepare contracts, accountants to confirm financial information, inspectors to determine soundness, and numerous other professionals who all play a role in the transaction....[read the article] [back to top]

Our Inn is For Sale! A Professional's Perspective by Peter Scherman of The B&B Team
Inn broker. Consultant. Real estate agent. Is there a difference? Should you care? The answer is yes to both questions, because one day you’ll be selling the inn you may be just thinking of buying today. The function of an inn broker or a consultant is different, and each is distinct from the role of a typical real estate agent. Depending upon your circumstances and your...[read the article] [back to top]

The Bus To Abilene, or, "To add-on, or not to add on?" by Peter Scherman of The B&B Team
Last summer The B&B Team received a call from innkeepers who were planning a major expansion to their inn. They had looked at the land, the building, had preliminary drawings from their architect, had spoken with two banks, and were ready to move forward. Here’s how they described their situation. “It’s like we’re sitting on the bus. The kids are on board...[read the article] [back to top]

The Components of Inn Value by Peter Scherman of The B&B Team
Whether you are thinking of buying an inn or already own one, at some point you’ll be involved in a transaction to transfer ownership of that inn. Whether you have a four room B&B or a 25 room full service inn, there are certain common elements that must be considered in determining value. All inns have real estate. They all have personal property...[read the article] [back to top]

Winning in a Buyer's Market by Rick Wolf of The B&B Team
All the recent news would indicate we are now entering a period of sluggish sales, inflated prices, and higher interest rates. What does this mean for the seller?...lower selling prices and a loss of control over the sale of their bed & breakfast inn? What does it mean for the buyer?...lower buying prices and more control over the purchase of their (new) property? All of the above... [read the article] [back to top]

INNKEEPING:

Guest Room Staging, The Innkeeper's Art by Janet Wolf of The B&B Team, Inc.
We were very fortunate in our innkeeping career to have had wonderful housekeepers who always went above and beyond their job description. One in particular stands out. She once told me that she would stand at the doorway of a room after she was finished cleaning and ‘critique’ her work. If anything was off kilter, a dust ruffle, an area rug, a curtain, she would see it as she scanned the room with her eyes. As an innkeeper, you can also use this same technique to know when it is time to refresh a ‘tired’ room...[read the article] [back to top]

MARKETING:

B&B Website Design -- The Good, The Bad, and The Ugly by Kit Cassingham, The B&B Lady
You know it when you see it and use it, but what is it about a bed and breakfast website that makes it good? Your website is an imperative B&B marketing tool. The quality of the website creates the first impression of your inn and hospitality; it sets the tone for...[read the article] [back to top]

Build Your Brand by Rick Wolf, The B&B Team, Inc.
“Building Your Brand” is a key component of your overall marketing strategy. When we talk about your brand, we are not simply talking about imprinting your logo on everything. We are talking about your Inn’s identity. In the simplest of terms, this is about your building an Emotional Connection with your guest through your brand. Did I just hear someone say, “What is he talking about?” “What is an emotional connection?” “Why is it important?” [read the article] [back to top]

Make Your Inn's Website Great! by Peter Scherman of The B&B Team
In the world of small hospitality properties, as for most small businesses, the Internet is the Great Equalizer. It has brought more democracy and more opportunity to more people in a more profound way than could have been imagined even ten short years ago. If you own an inn or are simply looking for one to buy, the Internet is (or should be) your...[read the article] [back to top]

Value vs. Price...There is a Difference! by Rick Wolf of The B&B Team
In a highly competitive environment, we in the Bed and Breakfast / Country Inn Industry are faced with the dilemma of how to compete while maintaining the integrity of our business and our Inn’s reputation. Most assuredly, how we price our rooms and services has a huge impact on our bottom line; however it is a topic worth discussing. Let’s take a look at how value...[read the article] [back to top]

REAL ESTATE TERMS:

Good Will by Peter Scherman, The B&B Team, Inc.
What exactly is “good will?” Good will is what is known as intangible personal property that is part of a business. With an inn, as we discuss in the article, "The Components of Inn Value," the base value is real estate. On top of that you have FF&E (furniture, fixtures, and equipment, or tangible personal property). Tangible property can usually be valued fairly objectively... [read the article] [back to top]

Letter of Intent by Peter Scherman of The B&B Team
Frequently in searching for an inn to buy, you find something that looks like it just might be the one. Unfortunately, you don't really know, because there is a lot yet to be learned before making a firm commitment. If, however, you know enough (especially the financials) to be able to formulate a basic offer, a good way to start the process is sometimes with...[read the article] [back to top]

Turnkey by Peter Scherman of The B&B Team
Do you know what they mean by "turnkey", "mostly turnkey", or "real estate only"?
The terms are frequently seen in advertising of bed & breakfast inns for sale: "turnkey," "mostly turnkey," "real estate only," "real estate and good will." They provide clues to what is included in the purchase price. Prospective purchasers of an inn need to know...[read the article] [back to top]

The B&B Team, Inc.
Inn Consultants and Brokers Since 1993
With Offices in Virginia and Maine

PETER SCHERMAN ~ P.O. Box 399 ~ Scottsville, VA 24590 ~ 434-286-4600 ~ bbteam@bbteam.com
RICK WOLF ~ 35 Western Avenue ~ Kennebunk, ME 04043 ~ 207-967-1995 ~ rick@bbteam.com

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