Consulting Pays For Itself Ten Time Over
We want to share a consulting experience we had with everyone as we feel the message applies to all innkeepers and potential owners.
Our client called us wanting our analysis on properties he was considering buying. All the properties were very diverse and had a huge price differential. He hired us and we began to compile our analysis. This inexpensive analysis gave him an unbiased, unemotional look at a potential multi-million dollar investment. As consultants we have no emotional or business investment. We can say it like we see it! As we delved into the properties we experienced the following:
1. Incomplete or misleading information on the marketing pieces for the properties.
2. Minimal or no financial data.
3. Realtors that did not or would not return our calls for information. How stupid is that when you can befriend someone that could help you sell your listing.
4. Really unattractive or unprofessional pictures of the properties.
5. Inexperienced or unqualified brokers.
6. Confusing websites and outdated or no online reservation systems.
7. No forethought on ways to increase business to justify sales prices. Who knows the property better then the owner?
So that got us thinking….how do you tell a savvy B&B/Inn owner who has built a great business how to sell their property? Even if it is not on your radar now, will it be in 1-3 years? If the answer is yes, here is the reality! Someone buying a B&B/Inn with little down payment and experience, and someone selling their property without solid financials and staging is just not going to happen in today’s world!
Some owners bought their property emotionally, or have run it as a “hobby”, or perhaps for many different reasons realized they just cannot make ends meet and need to move on with their lives. The problem is there are few to no buyers out there with 50% down payments that are emotionally tied to buying any property, let alone yours. So how do you combat this reality? That’s where fresh eyes and ears, unattached and unemotional professionals can do you a world of good.
Buyers, let one of these professionals that are not financially tied to the property take a look for you. It’s the best $500-$1,000 you can spend to keep the purchase in perspective. As professionals, we see things and have thoughts of what you can do with the properties that only experience can offer. I know it sounds funny, but as you buy a property you must embrace how to sell it! Also, by working with experienced consultants you gain the needed experience factor that many lenders are looking for.
Sellers, the bottom line is THE BOTTOM LINE! So how do you improve it? Don’t spend your valuable time inventing a wheel that is already exists. Qualified professionals have created systems that can be adapted to your business. Properties that have multiple sustainable sources of revenue are the ones that sell and sell closest to their asking price. Cash flow is the #1 qualifier for bank loans. Our company specializes in thinking “outside the box” and embraces grass-roots marketing and current technology.
If you are currently listed for sale or are thinking of listing, there are musts you have to have:
1. Fresh eyes to look at your property from a perspective you can’t emotionally see. Staging an operating inn is as important as staging a home for sale.
2. Current financials, cash flow and tax returns.
3. Maximize your revenue streams and profitability. You can’t start this when you decide to sell!
4. Employ a real estate professional that completely understands Inns and B&B’s. Hire one that can walk you through the ups and downs. We cannot emphasize enough; this is not like selling any other type property. It is a unique combination of home and business.
5. Time, Time, Time.
So now that we have you thinking you probably want to know what our client did! Well, we are still helping him look, just completing another analysis of another property he was interested in. He completely threw out his # 2 choice, he is looking at a similar, less expensive alternative to the # 3 choice and he is contemplating his #1 choice to see if he really wants to bite off the work it will take him to see a return on his investment. It cost him $500 to get the information he needed to assess a multi-million $ investment and he’s a client tht we will be working with in the future.
So, if you are thinking about how we can help you, give us a call or send us an email. They’re both free! Michael & Rhonda Horton
Ph. 828-329-5544 (RH)/5543 (MH) Email: mike@innspiredinns.com
Web: innspiredinns.com Fax 828-693-3793
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