CCN’s Verified Financials™ program is designed to provide Innkeepers and realtors a designation that can be used to instantly differentiate their hospitality property listing from other B&B listings on Industry Websites, Multiple Listing Services, and conventional advertising.

CCN’s Verified Financials^TM certification signifies that an independent evaluation of the inn’s business financials has  been conducted and that the historical income & expense documentation reconciles to its Federal Tax Returns.  Aspiring Innkeepers and their advisors understandably require copies of an inn’s financials to determine that the income from the inn will be sufficient to pay all expenses, service the desired loan and produce an acceptable bottom line relative to the ongoing financial needs of the buyer; the former must logically be determined before a well informed buying decision  can be made.     

CCN’s underwriting process examines the following to determine an acceptable range of debt relative  to the average of the historical business cash flow:

• Three (3) most recent years Federal Tax Returns
• Three (3) most recent Income & Expenses Statements
• Current Year to Date Income & Expenses Statement
• Prior Year Income & Expenses Statement for the corresponding period

CCN’s confidentiality policy and practices protects the ALL financial data and documentation.   With a $475.00 one-time fee, CCN shall:

• Evaluate all financial documents and proofs necessary to issue its opinion on business financials as they relate to commercial financing
• Entitle the innkeeper/owner, agents or representatives to use the Verified Financials™ designation in all media and advertising

Note: Underwriting a commercial financing combines an analysis of both the business being acquired and the personal qualifications and assets of the principal/s seeking to purchase.

As an added benefit, CCN will confidentially retain this financial data and documentation; this service insulates an owner from sharing sensitive data with un-qualified prospects.   Once a Pre-Qualified Buyer™ has been identified; the property/business data may be combined with that of the buyer to efficiently underwrite the feasibility of a successful transaction.

CCN’s Pre-Qualified Buyer^™evaluation and designation, was designed to provide Aspiring Innkeepers  a credible way to quantify how much purchasing power they really have as it relates to identifying hospitality properties that best fit their financial qualifications and investment objectives.   The  designation, certifies that a review has been conducted according to generally accepted commercial underwriting guidelines, by verifying the identities, professional qualifications, personal assets, liabilities, income and credit of all partners who will have an interest greater than 20%, and has determined a range for which financing could be obtained assuming the historical performance of the business would support a reasonable level of financing  relative to its anticipated/appraised value.   

CCN’s certification process satisfies the concerns of both realtors and sellers, because it identifies a conscientious person or persons as having submitted the proofs and documentation necessary for verification prior to seriously entering the market.  The buyer’s qualifications can be well established and certified by CNN, so that potential buyers and their realtors have realistic parameters established to help them identify a property that fits their financial qualifications and investment objectives. 

CCN’s confidentiality policy requires CCN to keep confidential, all identities, personal data and documents, and shall only use same for evaluation purposes.  Once a qualified property has been identified, CCN may use this personal data to combine with property specific financial data to determine the viability of an acquisition relative to the objectives of the borrower/s.

A $425.00 one-time, non-refundable fee shall be charged the borrower to:

• Evaluate ALL financial documents and proofs necessary to issue its opinion on personal   financials for two (2) partners as they relate to commercial financing.    An additional $100 fee  shall be charged for each additional partner
• CCN shall Issue a Pre-Qualified Buyer™ Certification Letter which may be presented to realtors and Innkeepers/property owners
• Once a property has been identified, CCN shall provide an independent review of the business financials i.e. three (3) years Tax Returns and P&L together with current year P&L for an additional $250 fee.

Note: If CCN obtains financing, the aforementioned fees shall be deducted from CCN’s fee at closing.

Aspiring Innkeeper’s… 2010 Financing Update!

By Rick Newman, Managing Partner of Commercial Capital Network, LLC

2010 will be a challenging time in the financial markets as bank and non bank lenders alike are forced to re-evaluate lending parameters to adjust to the pressures of the time.  The number of lenders has diminished in the last twelve months and the loan committees of the remaining institutions enjoy the luxury of an increase loan applications and the enviable position of lending to the most qualified buyers and the most desirable properties from a cash flow perspective.

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Innkeeper’s…   2010 Refinancing Update!

By Rick Newman, Managing Partner, Commercial Capital Network

Property Owners wishing to reorganize debt to make capital improvements or refinance a loan that is ballooning or adjusting would be well advised to begin the application process in the early part of 2010.
 

Rates are low but may not be for much longer… Interest rates seem to have hit bottom, but how long they will stay at this level is anyone’s guess.  Many experts express concern over the future of our economy and the impact market conditions will have on long-term interest rates.

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Note:  This material is being provided for general information purposes.  This overview is intended to alert the reader to the importance of managing his/her credit.  General guidelines, material and other information is being provided as a courtesy.  No representations or warranties are made as to the accuracy or processes covered herein.  The Credit Tier Examples listed below are for information purposes only, as lender guidelines vary.

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By Rick Newman, Managing Partner of  Commercial Capital Network

Few investors/entrepreneurs realize that they have the ability to finance the purchase of a business with retirement funds. Most people believe that there are only two options available to them if they want or need to access capital from their plan/s. Borrowing involves repaying the principal and interest and an early withdrawal may be subject to a pre-distribution tax and penalties. There is another way…

The Employee Retirement Income Security Act (ERISA), which created the IRA in 1974, places surprisingly few restrictions on how retirement money can be invested. Except for life insurance or collectibles-such as artwork or coins-IRA funds can be placed in just about anything. Tens of thousands of investors have switched their retirement savings to self-directed accounts since the stock market correction of 2000 and 2001. By some estimates, 3% of the $3.5 trillion held in IRAs is now in alternative investments-and the number is growing.

Here is how it works…

A new C Corporation will be formed and will sponsor a new 401(k). Your retirement funds are rolled into this new 401(k) and the retirement monies will invest in the stock of the new C Corporation giving the Corporation the cash to purchase the inn. The new retirement account invests directly into your new C Corp. by purchasing as much as 95% of its stock, providing the necessary capital to fund the down payment or as much as 95% of the entire purchase. Your new retirement account actually purchases the stock of a company you control, much as if your IRA or 401(k) were to purchase shares in a publicly traded company. Here are the benefits… when you purchase an inn with this type of structure you do not re-pay a loan which adds to overhead and you will not incur penalties and taxes due to a distribution – it is a stock investment.

Profits can flow into your retirement account and can be sheltered proportionate to how much stock it owns in the corporation. Ultimately, once you sell the inn, any gain from the sale of the sale will be tax deferred in the same way as the profit. The accumulated tax deferred profits and the gain from the sale, are now available for re-investment.

Lastly, when the cash requirement exceeds the capacity of just one investor or where multiple investors are required to invest in a single project, one self directed 401(k) plan may be created to accommodate multiple roll-overs.

Note: Custodians don’t offer investment advice-that’s the self-directed part. No outsider can guarantee the soundness of your investment strategy and that can be as terrifying as it is liberating. As always, talking with a good financial advisor who is knowledgeable in your area of interest is important. Unless you have both time and capital to spare, you should be cautious before putting your entire nest egg into a new business. However, investors with a strong do-it-yourself streak and a compelling alternative investment strategy may want to consider joining the growing ranks of people who have decided to invest their retirement funds in themselves.

401k/IRA Information hotline Call 609-759-1050 or complete the following contact information

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All Bed & Breakfasts/Inns are unique by design; in fact, it is that unique quality that separates one Bed & Breakfast/Inn (B & B/Inn) from the next.  Innkeepers invest their energy and capital over time to create a welcoming and hospitable environment that is unique to their community and valued guests. While the charm and ambiance of an inn add to a patron’s experience, such intangibles have only an indirect effect on the actual value.

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All Bed & Breakfast/Inns are unique by design; in fact it is that unique quality that separates one B & B from the next. Innkeepers invest their energy and capital over time to create a welcoming and hospitable environment that is unique to their community and valued guests.  Each financing is unique as well, so your individual circumstances i.e. credit financials and investment objectives  need to be analyzed  and considered relative to what financing programs best fit your investment objectives and your particular property.

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