Listing ID: 79301
Selling ownership of 2 condo-hotel units currently being rented through AirBnB. Owner has established SuperHost status and 4.8 star rating. Fully booked for this season, with reservations as far as next holiday season. Usually booked 3 months in advance. Walking distance to Wal-Mart, CVS, Starbucks, and Town Plaza. Beach is 10 minutes away. Because of 3 years of SuperHost status, AirBnB covers the hotel tax and sales tax, as well as offers a $1mil insurance policy. Owner only pays utilities (~$350/month per unit). Mostly families and couples renting in this area. Great opportunity for someone who wants IMMEDIATE cash flows from an ESTABLISHED business that can be operated on the side. UP TO 75% FINANCING AVAILABLE.
- Asking Price: $365,000
- Cash Flow: $36,943
- Gross Revenue: $47,279
- EBITDA: N/A
- FF&E: $20,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2016
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Seller provides training for 8 weeks with no cost.
Owner is moving to different country.
The company was started in 2016, making the business 6 years old.
The business has 1 employees and resides in a building with estimated square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nevertheless, the true reason vs the one they tell you may be 2 completely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be reasons to try to hide the reality of changing demographics, increased competition, current reduction in earnings, or a variety of other factors. This is why it is extremely vital that you not count totally on a seller's word, however rather, make use of the seller's solution combined with your overall due diligence. This will paint a much more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans with the purpose of covering things such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that revenue margins are too small. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new customers? Most times, operating businesses have repeat customers, which form the core of their daily earnings. Particular variables such as new competitors sprouting up around the location, road building, and staff turnover can influence repeat customers and negatively impact future earnings. One important thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the better the possibility to develop a returning consumer base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it situated on the edge of town? Exactly how might the local average house income impact future revenue prospects?