Skip to content
Short-Term & Vacation Rental Discussions

User Stats

40
Posts
3
Votes
David Smith
3
Votes |
40
Posts

Type of loans for a B&B financing

David Smith
Posted Jan 20 2022, 20:29

Beside an SBA loan, what are the other loan types / financing strategies to finance a Bed & Breakfast?

User Stats

1
Posts
1
Votes
Luz Allinger
  • Real Estate Investor
  • Vancouver, WA
1
Votes |
1
Posts
Luz Allinger
  • Real Estate Investor
  • Vancouver, WA
Replied Jan 20 2022, 20:34

Ask if they are interested in carry the contract.

User Stats

5,399
Posts
2,547
Votes
David M.
  • Morris County, NJ
2,547
Votes |
5,399
Posts
David M.
  • Morris County, NJ
Replied Jan 20 2022, 20:47

@David Smith

Why not a conventional "investment" loan?  seller financing?  commercial-type loan?

What sort of terms or characteristics are you looking for?

BiggerPockets logo
Meet Investor-Friendly Agents
|
BiggerPockets
Network with top investor-friendly agents who can help you find, analyze, and close your next deal.

User Stats

40
Posts
3
Votes
David Smith
3
Votes |
40
Posts
David Smith
Replied Jan 20 2022, 20:54

I need to ask around in PA area for these loans then...definitely not seller financing.

User Stats

11,348
Posts
13,312
Votes
John Underwood
Pro Member
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
13,312
Votes |
11,348
Posts
John Underwood
Pro Member
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
Replied Jan 20 2022, 20:55

A STR is typically a house, condo, duplex etc and as such these are residential loans not business loans.

So any investment loan for a residential property will work.

Yes there are creative ways to structure this such as including some owner financing or bringing on an equity partner.

User Stats

5,399
Posts
2,547
Votes
David M.
  • Morris County, NJ
2,547
Votes |
5,399
Posts
David M.
  • Morris County, NJ
Replied Jan 20 2022, 21:09

@David Smith

You just need a "regular" residential lender.  If you want to message me for a referral, I'd be happy...

User Stats

6,907
Posts
5,325
Votes
Michael Baum
Pro Member
#1 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
5,325
Votes |
6,907
Posts
Michael Baum
Pro Member
#1 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
Replied Jan 21 2022, 12:42

Hey @David Smith, a looong time ago we thought of moving to New Hampshire and running a BnB in North Conway or thereabouts.

At the time, the SBA loans were more favorable considering that the whole place was considered a business. We weren't just buying a large home, but the name, guest lists etc.