Does Anyone know how much money i would need to start a Bed & Breakfast, and where could i get a business loan

Answer 1

Knew some folks who invested nearly all their life savings into such a venture... they love it! I believe they spent nearly $500,000, but it was quite a beautiful place. You can check some online B&B's for sale... I've noticed some can go for a million on up. To get that business loan, you'll have to have excellent credit and devoted to the hard work a B&B requires... long hours, few times off. Hope you realize your dream... go for it!

Answer 2

Well I'm not sure what it costs to start a B&B, but I do know a thing or 2 about business loans.

Before any bank will even consider you, you'll need a good business plan. Actually a really good business plan. I'm not sure where you live, but most Universities and Colleges have free or low-cost resources to help you with this type of stuff. There are entire classes devoted to writing a good business plan and it takes a lot of research and knowing your demographic!!

You could also try asking other B&B's that aren't in a competing area with you for some information. They're usually really nice people that would be willing to take the time to talk to you. Also, a bank could probably tell you a little bit about getting a loan.

Answer 3

You've got 2 different issues here; let's tackle them one at a time.

RE: Starting a B&B

Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.

Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:

* How to Start and Operate Your Own Bed-and-Breakfast: Down-To-Earth Advice from an Award-Winning B&B Owner by Martha W. Murphy
* How to Open and Operate a Bed & Breakfast, 7th by Jan Stankus
* Upstart Guide Owning & Managing a Bed & Breakfast by Lisa Angowski Rogak
* Start and Run a Profitable Bed and Breakfast by Monica Taylor

There are plenty of free informational resources out there. Check the source box for links to articles.

RE: Business Loan

The business of lending is a dense one and should be researched properly. To get started, I suggest contacting the Small Business Administration (SBA). Entrepreneur also offers a great site dedicated to money & finance – see below for both.

Research, research, research – this cannot be stressed enough. Read as much as you can about the process. Here are some book titles that are relevant:

* How to Get a Small Business Loan: A Banker Shows You Exactly What to Do to Get a Loan (Small Business Series, No 1) by Bryan E. Milling
* The SBA Loan Book: Get A Small Business Loan--even With Poor Credit, Weak Collateral, And No Experience by Charles H. Green
* The Insider's Guide to Small Business Loans by Dan M. Koehler

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 4

A friend of mine went through this process and it wasn't easy but was eventually very rewarding.

It will depend on your location, the real estate costs and your interests. I had a friend that had a large house and small cottage that they bought in a nice town outside the Bay Area. They worked very hard and eventually saw that they could make ends meet but they didn't have enough cash flow from the number of rooms to quit the day job.

So the trick is to pick a large enough home with enough appeal to attract guests for some reason or another. Find a home that can easily be converted to B&B without major reno unless you can finance a large mortgage payment while you fix it up.

In order to be a success it will have to be immaculate and well presented inside and out which means that whatever place you get you will need to spare no expense to get it right.

So, given all that you could possibly, for example, buy a large older house in nice part of a city for (guessing) 3-800k, depending on what city, making sure that it is structurally sound and that the basement/foundation/pest situation is OK. Then gut it, replace/upgrade the walls, bathrooms, kitchen, wiring, plumbing, insulation and heating system, redo siding and roofing to prevent leakage and redecorate for perhaps another 50 to 200k, depending on the size of it and extent required.

Then you need to make sure that the revenue that it will generate will cover your mortgage and ongoing expenses inclusing maintanance and upkeep.

Banks like real estate especially if you can prove that you can survive cash flow wise. It wouldn't hurt to put a plan together and go see one just to see what they say they'd need from you to approve it.

I have not done this before but am guessing from observation so the best idea is to make friends with a real estate agent and construction contractor and talk to them about what is in your market. Then do an internet search just in case...

Answer 5

The most expensive part of starting a B&B is getting the real estate. Everything else is likely to be peanuts compared to that. Hence, you are likely to need a mortgage rather than a business loan.

Answer 6

I dont know how much you would need but I know where you could try to get it. The SBA or small business association provides loans to people who are trying to start their own business. Good luck

Answer 7

You can try to get an sba ( small business association loan) at sba.gov

Answer 8

good bed and breakfasts go for the 500,000 and up . If they are really good on prime property they can bring $ 4 million and up .