Karen Kovacik, Inn Broker Lodging Property Sales Specialist Post Office Box 1202 - South Fork, CO 81154 Cell 719-588-2603  -  Fax - 719 325-7873 Skype - 1-719-387-7233

Buying an Lodging or Hospitality Property or Bed & Breakfast© - by Karen Kovacik This article may not be copied nor reproduced without expression permission of the author. Is buying an inn, bed and breakfast, or other hospitality property in your future? Making a decision to buy a hospitality property has far reaching implications. Anyone considering purchasing an inn, bed and breakfast, or other hospitality property should thoroughly research the following issues. A Commitment to Innkeeping Innkeeping is a way of life, not a career. It takes special people and an extra special commitment to integrate personal, social, physical, health, financial, and family needs with that of the business. Innkeeping involves not only your wallet, but your family. To be successful, you must integrate all aspects of family and business life. Why have you decided you want to be an innkeeper? The Business of Innkeeping What type of hospitality property will be right for you and your family? Are you looking for a lifestyle change, a profitable business, or both? Who will run the inn on a daily basis? Who will teach you this "business of innkeeping?" How long will you remain an innkeeper? What will you do if you made a mistake and are unhappy running an inn? Running an inn or other hospitality property places tough demands on any couple or family. Make sure you understand the commitment that will be required of you and your family before leaping into a purchase. Many families simply cannot withstand the intrusion innkeeping makes in their personal lives. Analyze your reasons for choosing innkeeping as a profession. How to Locate Properties for Sale One of the most difficult tasks is finding properties for sale. Most innkeepers do not want their clientele to know their property is for sale. It can be a real challenge to find inns and other viable hospitality properties that are actively on the market. The key word is "viable." There are many properties for sale at any given time, however, few make good financial sense. Will you retain the services of a real estate agent, a buyer broker, an inn broker, or consultant? It is wise to hire a professional to help analyze the financial health of any inn you are considering for purchase. Identifying a Profitable Inn An experienced inn consultant should be able to assist aspiring innkeepers in the analysis process. Our staff is experienced in evaluating financial documents to make an initial determination on viability. We recommend analyzing financial information prior to incurring travel expenses to tour properties. Too many properties on the market will never be financially viable. Analyzing the potential prior to touring the property can save time, disappointment, and money. Why waste time seeing properties that will never be viable businesses? Can you identify a profitable inn given the opportunity? Financial documents must be analyzed for discrepancies, poor management, and errors. To do this, you must understand the industry to know what represents the norm when reviewing financial documents. Will you be buying a business or just real estate? Professional Advisors Do you have access to a network of professionals to assist in this new venture? A good start to success is to hire your consultant and accountant before you need them. Your attorney and building inspector should be selected from the same area as your inn purchase. Details Who will help with the numerous details? Your professional advisors should be able to assist you with the many details of purchasing an inn or other hospitality property. A licensed inn broker should be able to explain all steps of the transaction including letter of intent, confidentiality issues, disclosure, contracts, contingencies, and due diligence. A good attorney will also be able to counsel you in these areas. Always have an attorney review any legal contract to purchase. In addition, your accountant should review the financial details of any purchase prior to signing any purchase agreement. Financing Financing the inn of your dreams is often the difficult part. Unless the property is properly priced and the sellers have adequate financial documents, financing can be almost impossible to obtain. Financing options are varied and include seller financing, bank financing, Small Business Administration financing, lease purchase, lease option, and other creative approaches. Training If you have never been an innkeeper, how will you learn to operate your new business? Training should be a part of every contract to purchase. Adequate training should cover all aspects of the building and business operations. You will need to be familiar with area activities, merchants, and local businesses.  Ask the sellers to introduce you to area innkeepers and merchants after the sale. If the sellers are unable to provide training, ask them to hire professionals to train you as part of the sale contract. The Art of Innkeeping After closing on the property of your dreams, who will teach you the fine art of being an innkeeper? Suddenly you are responsible for reservations, marketing, advertising, maintenance, hiring and firing staff, insurance coverage, tax issues, tax reports, etc. It is important to have a plan of action and experts on call to help you solve problems as they arise. Intuition Does intuition have a place in business? If you have a nagging feeling about a transaction, place the transaction on the back burner until you are able to adequately evaluate your doubts and come to a concrete reason as to why you are uncomfortable. How well developed is your intuition? Your Best Interests Who will be looking out for your best interests? Is it worthwhile to involve a professional having no direct monetary interest in negotiations and the sale transaction? Professionals having no conflict of interest can assist you before, during, and after the transaction. ~ Bringing buyers and sellers together from all over the world! ~ Meet Karen Kovacik     |     Meet Scott Stecken    |     Selling an Inn     |     Buying an Inn Sold Properties     |     Properties for Sale     |     Find an Inn    |     Email Us     |     Home Page Scott Stecken, Inn Broker Colorado Inn & Lodging Property Specialist P. O. Box 2, South Fork, CO 81154 Email scottstecken@gmail.com Cell 1-719-588-9394 Karen Kovacik, REALTOR, AMPI, e-Pro Inn Specialist, International Properties, Unique Offerings National, Colorado & Pueblo Association of Realtors P. O. Box 1202, South Fork, CO 81154 Email kkovacik12@netzero.com Cell 1-719-588-2603