want to buy an inn

[NoHoBar]

Hello, allow us to introduce ourselves.....Shayne & Toryn we WANT TO PURCHASE this amazing Inn, however we have no money down.....yeah i know how the hell are we going to get this inn, well we are looking for advise.....i have an amazing business plan, but NO schedule C. The Inn was bought by an older couple that were going to retire and run it , it has beautiful living quarters ....it sets on 13.5 acres JUST beautiful. Toryn and I have been working with the now owners since May of last year, they rent out rooms now and then, so to the banks it's a start up. so of course they want 10 to 20% down. I have so many people that have weddings and parties coming up and it's all passing us by because we don't have the down payment. because we helped a family member save there house.
Please Give us some help here I have been in the industry off and on my whole life , it runs in my veins....There has to bea way to buy this great property!!??
Thank you

Here's an idea. A bit of a gigantic risk, but you asked. Can you get deposits from the many people who want to have weddings and parties there and use the money as the down payment? You'll have to be able to hit the ground running big time, but you asked for ideas! .

Hi Beach House,
I did think about taking the deposits, BUT the now owners don't want to be held responsible for the deposits.....
Thank you
.

Hi Beach House,
I did think about taking the deposits, BUT the now owners don't want to be held responsible for the deposits.....
Thank you

Find a way to indemnify them.
.

Hi Beach House,
I did think about taking the deposits, BUT the now owners don't want to be held responsible for the deposits.....
Thank you

Find a way to indemnify them.

I am sure there is something illegal about that.
.

Hi Beach House,
I did think about taking the deposits, BUT the now owners don't want to be held responsible for the deposits.....
Thank you

Find a way to indemnify them.

I am sure there is something illegal about that.

about what?
Instead of putting up road blocks, see an attorney and find a way to get some money up front. Obviously, there will have to be contracts, indemnities, transfer promises, reimbursement protocol.
OP is asking for 'creative financing.' It's an idea.
.

I am not an attorney and I'm not a realtor. But I was just thinking.
Could this not be part of the Purchase and Sale agreement? there are often contingencies on P&S, one of the most frequent is the ability to get financing.
If you have a P&S in place with clearly laid out contingencies, can you not sell time and space in your future inn based on the contact in place?
Like I said before, it would be very risky, and you NEED a real estate attorney, but it is a thought.
.

It would be complicated and risky, but I don't think it is necessarily illegal, although likely impossible to pull off -- there are at least three parties (T&S, the sellers, and the wedding couples) and at least two contracts (the purchase and sale agreeemnt, and the wedding contracts) with inter-dependent contingencies....
T&S would have to line up (in advance) a sufficient number of wedding couples willing to put down sufficient deposits to hold their wedding at an inn that the T&S do not yet own, so that T&S can amass a sufficient amount of cash to make a down-payment in purchasing the inn, the contingency being that if the purchase of the inn falls through, the couples get their money back (plus some? they are going to have reschedule their weddings and find another venue..... I am assuming that the present owners have no interest in hosting these weddings).
Simultaneously, T&S will have to convince the present owners to sell, and a financier to finance their purchase, based on having the contracts (with substantial deposits) in hand from the wedding couples, the contingency being that if the weddings don't materialize, the financing disappears and the sale falls though.
As long as the wedding couples understand and agree to the terms..... why not?
.

I was saying illegal for a third party to take the deposits when the wedding couples believe them to be going to the owners, as part of their contract. Yes, agreed, it would be so convoluted it ain't funny. Weddings are complicated enough, consider adding something iffy thrown into the mix, it would never fly.
Unless they are authorized as a lease to own set up with the owners. Or, if they were on a percentage as hired innkeepers. You can take a % of everything, and this would be a good incentive to book the place up for events and weddings. But that, again equals work, save and invest the money into the place and then buy place. Not what they are asking. I don't think.

 

[Tom]

Hello, allow us to introduce ourselves.....Shayne & Toryn we WANT TO PURCHASE this amazing Inn, however we have no money down.....yeah i know how the hell are we going to get this inn, well we are looking for advise.....i have an amazing business plan, but NO schedule C. The Inn was bought by an older couple that were going to retire and run it , it has beautiful living quarters ....it sets on 13.5 acres JUST beautiful. Toryn and I have been working with the now owners since May of last year, they rent out rooms now and then, so to the banks it's a start up. so of course they want 10 to 20% down. I have so many people that have weddings and parties coming up and it's all passing us by because we don't have the down payment. because we helped a family member save there house.
Please Give us some help here I have been in the industry off and on my whole life , it runs in my veins....There has to bea way to buy this great property!!??
Thank you

Here's an idea. A bit of a gigantic risk, but you asked. Can you get deposits from the many people who want to have weddings and parties there and use the money as the down payment? You'll have to be able to hit the ground running big time, but you asked for ideas! .

Hi Beach House,
I did think about taking the deposits, BUT the now owners don't want to be held responsible for the deposits.....
Thank you
.

Hi Beach House,
I did think about taking the deposits, BUT the now owners don't want to be held responsible for the deposits.....
Thank you

Find a way to indemnify them.
.

Hi Beach House,
I did think about taking the deposits, BUT the now owners don't want to be held responsible for the deposits.....
Thank you

Find a way to indemnify them.

I am sure there is something illegal about that.
.

Hi Beach House,
I did think about taking the deposits, BUT the now owners don't want to be held responsible for the deposits.....
Thank you

Find a way to indemnify them.

I am sure there is something illegal about that.

about what?
Instead of putting up road blocks, see an attorney and find a way to get some money up front. Obviously, there will have to be contracts, indemnities, transfer promises, reimbursement protocol.
OP is asking for 'creative financing.' It's an idea.
.

I am not an attorney and I'm not a realtor. But I was just thinking.
Could this not be part of the Purchase and Sale agreement? there are often contingencies on P&S, one of the most frequent is the ability to get financing.
If you have a P&S in place with clearly laid out contingencies, can you not sell time and space in your future inn based on the contact in place?
Like I said before, it would be very risky, and you NEED a real estate attorney, but it is a thought.
.

It would be complicated and risky, but I don't think it is necessarily illegal, although likely impossible to pull off -- there are at least three parties (T&S, the sellers, and the wedding couples) and at least two contracts (the purchase and sale agreeemnt, and the wedding contracts) with inter-dependent contingencies....
T&S would have to line up (in advance) a sufficient number of wedding couples willing to put down sufficient deposits to hold their wedding at an inn that the T&S do not yet own, so that T&S can amass a sufficient amount of cash to make a down-payment in purchasing the inn, the contingency being that if the purchase of the inn falls through, the couples get their money back (plus some? they are going to have reschedule their weddings and find another venue..... I am assuming that the present owners have no interest in hosting these weddings).
Simultaneously, T&S will have to convince the present owners to sell, and a financier to finance their purchase, based on having the contracts (with substantial deposits) in hand from the wedding couples, the contingency being that if the weddings don't materialize, the financing disappears and the sale falls though.
As long as the wedding couples understand and agree to the terms..... why not?
.

I was saying illegal for a third party to take the deposits when the wedding couples believe them to be going to the owners, as part of their contract. Yes, agreed, it would be so convoluted it ain't funny. Weddings are complicated enough, consider adding something iffy thrown into the mix, it would never fly.
Unless they are authorized as a lease to own set up with the owners. Or, if they were on a percentage as hired innkeepers. You can take a % of everything, and this would be a good incentive to book the place up for events and weddings. But that, again equals work, save and invest the money into the place and then buy place. Not what they are asking. I don't think.
.

Agree. Basically, a contract has to spell out the parties. You can't offer to host a wedding unless you have full legal entitlement to do so. Being a lessee with a written lease allowing you to do weddings in a set period of time would work because that gives you conventional standing to contract the wedding. Heck, most businesses are lessees of shop space. The lease itself can be creative, deferred payment, wedding deposit could be placed in escrow pending completion, etc.
Warning! It may be legal to spend a deposit in advance of delivering the goods, but you could be in a world of hurt if something screws up. BTW the original "Murphy" had a daughter and she is a wedding planner now, or so it seems ;-)

 

[Debbic53]

Since you have a marketing/business plan, why not make an agreement with the current owners that you be allowed to use it on their behalf. You would keep a portion of the resulting guests fees that you bring to the table, keep that money for your down payment. This will give you a really good idea of how your plan would work in real time. Just a thought.

 

[ChefDRG]

I'm the odd one here as far as how I got "my inn". My grandparents got it at an auction that the first bidder couldn't come up with the money. My Grandpa remodeled it and ran it until his health gave out. Then he ran it from the wheelchair until the day he landed in the nursing home. My uncle finally admitted that he was done and told my grandma to sell it, she refused. My aunt agreed to run it and I volunteered to be the maid for the first summer… I'm still pinned fast under the house's thumb three years later… We inherited a monster that saw the innkeepers as its personal slaves!

.

Duff that is a really cool story.
.

Thank you. Life has a way of leading you if you let it.
.

The inn down the street is an inheritance. The woman running it grew up there. She is selling it this year after raising her kids there and finally deciding to downsize her home and busy schedule.
.

Did somebody say--selling an inn?

 

[TS4ever14_]

I know you have probably gone, never to return, but I do have one last thing to say for someone who may come in with the same question down the road.
The parting shot tells me you were looking for rah-rah, not the truth. Would different answers have changed the reality? The truth is there is NO magic wand or fairy godmother to give you what you want, when you want it. We would not do you - OR the industry - any favors to give false hope. Each and every one here worked and saved to be able to do what we do now. And I knew upfront ir was not going to make me rich. All I asked of my B& B was to pay the expenses of the house and business - it does that. Did it drain my resources? Hell YES! Do I regret it? Hell NO!
By being here and the marketing I have done, I helped bring my City back (along with my involvement with the City), something that tells me I am successful and can be proud of even though in a decade I expect to be dead and gone and no one know who I was.
When you give, you must give freely or make it a business arrangement with legal documents. (When I bail people out, I do it knowing I am kissing that money goodbye forever and that is my choice to do or not do). Now, rather than be angry at being told there is no magic wand, take the advice given to be helpful rather than false hope, BOTH of you look for a second job and bank every penny you make from it. Learn to live on one salary and bank the other.
We raised 4 of our 6 kids on what I made at my full-time and part-time jobs (in Illinois where cost of living is NOT cheap) while Himself went to art school and then tried to "make it" as an artist for 4 years. Then he went back to school to hone his skills in his industry (another year) before getting a job again. Every raise went into a savings bond or upped my contribution to my 401k. Although different, MY story is much the same as the others - we ALL scrimped and scraped and did not do "Begathons" as my son calls them. Pull up the Big Boy/Girl knickers and work & save harder. If this one goes, concentrate on the fact that there MAY be something even better in the future..

hello Gillumhouse,
Not gone! We are here to stay we don't scare easily.....LOL Learning this site.... well we thank you for your forwardness, and wisdom first of all...WE KNOW all this we are both professionals with many years experience and SAVING, but we helped Family!! we have worked a few jobs been there got the Tee-Shirts....We are just looking for OTHER resources we thought all of you would maybe know of....?! NOT looking for NO FAIRY godmother or Magic wand OR handout, we aren't that kind of people....WE are old enough to know about LIFE...
Again thank you