The Small Business Times

How To Buy A Bed And Breakfast With No Money

Is it possible to buy a bed and breakfast with no money? Starting a bed and breakfast without any capital is not challenging if you put your mind to it. Therefore, nothing is stopping you from becoming a bed and breakfast owner.

There are several ways to buy a bed and breakfast with no money. First, you can buy it from an owner who wants to retire but still wants to generate income from the property. On the other hand, you can obtain the property through a private mortgage from the owner. As a result, you’ll pay back the owner and not a lending institution.

It’s interesting to note that most bed and breakfast businesses have a life span of 15 years with a single owner. While others may only last for up to 5 years.

Two Ways to Buy a Bed and Breakfast Without Any Money


Find a bed and breakfast business owner who is looking to to sell their property to someone but doesn’t have offers yet. Then offer to take over the business and pay them a rental fee, so they still earn income. Therefore, you won’t need to put any money forward to pay for the property or business. Instead, you pay the rent from the money you earn after hiring the rooms.  

However, before the owners accept this offer, there are essential things that you need to demonstrate. First, you need to prove that you can take care of their property. Remember, you haven’t bought the property. Therefore, it still belongs to the owner. Hence, you should take good care of each item in the facility.

Secondly, you need to prove that you can generate an income that supports you and pays rent to the owner. Hence, the business needs to be profitable to meet this demand.

Also, if you want to buy a bed and breakfast with no money, it is crucial to have a conversation with the owner and ask questions. First, inquire about their occupancy rate to know the number of guests you are likely to have. 

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And make sure you’re aware of their revenue over the last three years. Such factors can help you determine if you will profit from the business and cover the rent for the owner.

It would be best to find a property in good condition because you may not profit if you have to deal with repairs first.

You may find the business does not keep a client database and rely on walk-ins. And in this case, you need to be good at marketing for your business to make a profit.

Private Mortgaging

If you are not comfortable renting, you could try to secure a private mortgage with the owners. This is another way to buy a bed and breakfast with no money. This is where you pay the loan to the property’s current owner instead of the bank.

However, before you get a bed and breakfast mortgage, you’ll need to show the lenders that you are creditworthy. That means you should prove that the business can support itself and pay the mortgage loan.

If the mortgage option suits you well, find a legal team to help you enter into a legal contract with the lenders. This is to protect you and the owner of the property.

Bed and Breakfast Insurance

It’s best to get insurance for your business to cover it against uncertainties. The insurance cost varies according to the size of the property and other factors. However, most bed and breakfast business owners pay about $1,500 to $5,000 per year for insurance. The cost should cover liability insurance, your worker’s compensation, and more.

Bed and Breakfast Business Profitability

Before you venture into a business, it is essential to ask yourself if it is profitable. Therefore, if you choose to buy a bed and breakfast without money, will it make a profit or loss?

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A survey shows that a bed and breakfast gets an average of 362 bookings per year after several years of operation. Therefore, if you charge $60 a night, you will get a gross income of just over $20,000.

Apart from the profit, B&B is a good business because it has other advantages such as meeting different people. Besides, you can live within the property to avoid commuting daily and minimize your expenses. Finally, you’ll have quality time to do other things like spending time with your family during the low seasons.

How to Make your B&B Business Exceptional

When you choose to buy a bed and breakfast with no money, you need to profit to sustain the business and pay the owner. Therefore, it’s essential that you work toward setting your business apart from others to attract more guests.

One of the tips that can help you is to offer a happy hour where the guests can meet and mingle with you and the other staff. It will help to know where you need to improve the facility. As a result, you will win return guests and referrals.

Also, you can add extra amenities such as a fireplace and a private picnic area to make your guests feel cozier. Finally, buy quality bedding such as luxurious sheets and duvets for guests to enjoy their sleep.


Leasing and private mortgaging are ways to buy a bed and breakfast with no money. If you are interested in a bed and breakfast business, weigh up the two options and choose the one that suits you best. Irrespective, there’s immense potential to make a good profit.