All Aboard!

After over a month of gathering and organizing, we are FINALLY ready to submit our board package to the co-op we are looking to buy into. With the board's approval, we will be given the go-ahead to purchase the apartment and close. Of course, with the holidays (and our vacation to Argentina) fast approaching, this may take awhile. To keep things moving we've decided to meet with our architect in anticipation (fingers crossed!) of board approval. And in anticipation of meeting with our architect, we've started to peruse the design books and magazines at our local bookstores. This research hopefully will give us ideas for both this apartment... and whatever other project later on (b+b anyone?). Ideas or suggestions of where to look welcome.

STEP 1

We are currently working on STEP 1 of our "Moving On Action Plan" (or at least that's what I'm going to call it for now). This means we are in the process of purchasing an apartment in Manhattan. Specifically, apartment 4C at 2 Charlton Place. I know that this must seem so quick. But really, we've been holding out on you and are just now getting around to the update! Sorry 'bout that.

2 Charlton is a co-op apartment building built in the 60s (ick), on the corner of 6th Avenue and Charlton. This is located on the very western edge of SoHo. Below you can see the layout which, you must admit, has a fair amount of potential. We already have a signed contract, but need board approval prior to closing. So we're hoping by mid-January we'll be the proud new owners of an apartment that needs to be renovated.

Moving On

I apologize for waiting so very very long before updating this. We had to pause as we made a decision whether we could move forward with buying a bed and breakfast... or if it would have to be delayed. What can I say? This is a pricey undertaking and, at this point, we just need more planning (and funds!) to make it all happen. That said, WE ARE NOT GIVING UP! Nope! We are just re-strategizing (is that even a word?) on how to get there from here. Some thoughts:

STEP (1) Buy investment property here in Manhattan
STEP (2) Renovate said investment property
STEP (3) Save! Save! Save!
STEP (4) Plan! Plan! Plan!
STEP (5) Sell investment property for a pretty penny
STEP (6) Buy bed and breakfast

Or something like that. Right now we're still on STEP 1. However, we're thinking that whatever we do here will help lay the group work for STEP 7, which is to run the bed and breakfast! So, keep checking back. I promise we won't wait so long to post again, and we'll continue to update you on our progress. At least for now as it relates to STEP 1.

Next... Time

To our dismay we have found out that the lovely little inn we were so interested in, complete with lavender field, is already in escrow. To make matters worse, we have fallen in love with the idea of the lavender field and having an inn that is in a more pastoral setting. Sadly, the inn we were looking at in Calistoga didn't have enough appeal to sway us otherwise. In the meantime, N has sent us a collection of books on how to run and B+B... so we'll be ready when the time comes!

NEXT!

As expected, our counter offer to the sellers was rejected. The other buyers "win" the property and we "lose". Sad as it may be, this isn't exactly heartbreaking given all the issues surrounding this particular inn. The good news is that there are now TWO new inns on the market that we are interested in seeing. One we have already referred to in a previous post, and the other is an inn in Calistoga. The Calistoga inn (which is different from the other inn that we looked at there) is interesting because it is a 5 bedroom b+b with 7 one bedroom apartments that they rent as monthly rentals. Those 7 apartments are already licensed for renting as part of the b+b if the owner should so desire for a total of 12 rooms. Perfect! I think we'll be making another trip out west soon to see these two properties. And there's even a good deal to SF on Virgin American to boot!

Another Option

Over the weekend we received a counter offer from the sellers. As expected, their counter is more than we are looking to spend... especially if we have any hope of making this b+b a success. In pondering our next step and what our counter to their counter should be, we are realizing that perhaps there is an alternative. Perhaps this isn't the inn for us? Perhaps we are trying to fit a square peg into a round hole? Or is it the other way around? Either way, we have decided upon a conservative counter. And if this doesn't work out, we're ready to fly back out to Napa (what a tough life it is) to look at another property that could also work. This second one, though farther afield, has a LAVENDER FIELD and overlooks a VINEYARD! I know. I know. Pretty amazing, huh?

On the Playing Field

Yesterday we heard back from our broker that the sellers would like to have until this Friday to respond to our offer. Apparently, although our offer is lower than the other offer they have received, the sellers feel that ours has some positives while the other has some negatives. This means that we are still in the game, not just the sidelines.

And Then There Were Two

This weekend we received a call from our broker letting us know that there is a competing buyer who is also interested in the property we placed our offer for. This second buyer was to offer more money than us, and was giving the seller a 24 hour time frame in which to accept their offer. Therefore, if we wanted to compete, we needed to submit a signed executed contract, with addendum, accompanied by a check made out to the title company, to help show the sellers how serious we are. We also had to up our offer. You might think that all this would be easy, if not for the fact that we moved this weekend. All 100 boxes. With three cats. Not easy. Not fun. But, at the very least, the ball is now in the sellers' court. We wait and see.

Let the Games Begin

And so it begins. After several weeks of number crunching and research we have identified an inn we would like to purchase. This doesn't mean we'll get it. And it doesn't mean we won't freak out if we do (because you know we would). The bidding process commences this evening at 7pm, when we have a call with our broker to make the initial offer. I'm sure this will be the beginning of some back and forth with the sellers. Or, perhaps, outright rejection. We'll see. It all depends on whether or not the sellers are ready to acknowledge the pickle they're in. There's some debt involved (theirs) and some cash limitations (ours) that will likely come into play. Cross your fingers (and toes) and we'll keep you updated. You might want to wish us luck too. We'll need it... especially if this all works out.

It's Takes a Village

So. Yesterday we learned something new. It was interesting. It was concerning. It could possibly be a deal breaker. Yesterday we learned that the inn we are considering purchasing sits on the site of a Native American village. While the marketing possibilities for this are quite appealing, the process of having to excavate (yes, you read that correctly) prior to building anything is daunting indeed. Actually, I correct myself. It's more the having to PAY to excavate that is daunting. And so now, in addition to researching construction costs, we find ourselves researching "archeological historical" firms and the cost of excavation. Who knew?

Breakfast

We've noticed that a lot of bed and breakfasts take pride in (and are known for) their elaborate and rather formal breakfast service. This is usually a multi-course affair where everyone sits together and waits to be served by the innkeeper. We've seen a lot of fruit cocktails as starters, followed most likely by an egg dish of some sort. The issue is that you often have to wait for everyone to arrive before being served (or finish before moving on to the next course). In addition, the meal, quite simply, is often too heavy for the day's activities. We were thinking to rather follow in the European tradition of a breakfast buffet. This would include homemade breads and jams. Yogurt, granola, fruit, cereal, cheese. The list could go on, and of course the focus would vary from day to day so that guests would not tire of the same thing day after day. That is our feeling on the matter. But what is yours?

Which is a better breakfast?
	extensive serve-yourself buffet
	multi-course and served
pollcode.com free polls

Business Planning 101

This weekend we spent much of our time creating the business and marketing plan for our possible new venture-to-be. Steve was responsible for the numbers portion of this (thankfully), while I was in charge of creating the presentation and developing some of the marketing ideas that would help grow the business. Regardless, we both needed a crash course in what, exactly, goes into a business plan. Thankfully the Harvard Business Review has a little, handy, pocket-sized guide to this. AND it is well-designed! BONUS! Therefore, I was happy to sit down and read this cute mini book cover to cover Friday night. The whole process sounds so straight-forward until you actually start doing it. Then you quickly realize how many components there are and, oh!, how long it's going to take. The good news, however, is that Steve could not figure out how to make The Numbers NOT work. A good sign indeed.

Day Two : Sonoma

Since Day Two did not officially begin until 12pm, we decided that while we were in Sonoma, we may as well visit a winery during our free morning. I know. It was a tough decision. We limited our choices to wineries within the Sonoma area, since that was where we would be for our appointments. Gloria Ferrer, known for their sparkling wines, was the ultimate winner. And so we spent the morning sipping Rose Cuveé and Carneros Cuveé on the winery terrace. It was beautiful. Hot. But lovely. After this we were ready to view the final two properties on our trip. The first was a block or two off of the main square in Sonoma. We had never been to the heart of Sonoma, and it was adorable. Much like a mini-version of Healdsburg. (Healdsburg being already quite small, Sonoma is even more so. Perhaps that is why it was so sweet?). We couldn't believe we had never been there.

The first inn was also quite small. With only six rooms, it felt quaint. There was some potential here, but the two buildings of the inn felt jumbled and tight. It also needed a fair amount of work, despite the solid furniture and great location. We kept this in our mind as we moved on to the second inn—the last we would see this trip.

Inn number two was a five minute drive from the town center. The location, we lamented, could have been better as it sits off of the main two-lane Sonoma Highway. That said, we were immediately impressed with the scale of the property—which included a (relatively) considerable amount of land. The inn itself, also had a good basis upon which to improve. There was decent furniture and linens. Room for expansion. And, of course, the opportunity to improve the business. This, we thought, could be it.

At this juncture, our next step is to sign a confidentiality agreement so that we can receive the financial documents for the inns we are interested in. Once we are able to review those, we will able to fully assess if this is all possible. Or not.

Day One : Napa

We landed late-ish in the day on Wednesday into the Sonoma County airport. Correction, the Charles M. Schultz Sonoma County airport. With Snoopy to welcome us back to the area, we looked forward to two days of searching for properties to "acquire" (as our broker kept saying). Day one would focus on two inns in the Napa area—one in Napa itself, and the other in Calistoga. Since our first day didn't begin until 1pm, we spent the morning exploring the Oxbow market. This was a very very small version of what you see in Seattle's Public Market and even the Ferry Building in San Francisco. We bought some gifts of olive oil from The Olive Press, and set out to the first inn. This luxury inn, located in the heart of Napa, is rated one of the very best in the area. We loved the thought that clearly went into the operation, and were charmed by the charismatic owner. Unfortunately, we felt that although the inn needed work, it didn't need the TLC we were hoping to give. This lead us to the second property, located further up the valley in Calistoga—a historic inn clearly in need of all the TLC it could get. However, we felt that if there ever was a true life Money Pit, this was it. With zoning and water issues surrounding the town of Calistoga, to the structures sorely in need of rebuilding, this project was not for us. We hoped for better on day two.

Western Voyage

Tomorrow, bright and early, we leave for our long awaited trip out West. We'll first head to Idaho for the 50th anniversary of the Rubin family lake cabin. From Friday afternoon through Thursday it'll be all-you-can-eat-s'mores (I hope) and a good dose of family togetherness. Our side of the family (meaning Steve's immediate family) are in charge of dinner Saturday night and breakfast on Sunday. For breakfast, Steve and I hope to create an incarnation of our ideal bed and breakfast buffet. This means granola and fresh fruit with yogurt and honey. Fresh hard boiled eggs and cheese. A variety of breads and spreads (including Nutella, naturally). Breakfast cereals. Juices. The list goes on, but in reality, we'll have to see what's actually available in this remote locale!

On Wednesday we will fly into the Sonoma County airport for the Napa portion of our trip. It's during these three days that we hope to learn more about buying a bed and breakfast, and to see if there is one out there for us! We have four appointments—two on Thursday and two and Friday. In between we hope to slip in a few winery visits, of course. How could we ever get through a trip to Napa without doing so?

Options

Today we finally had the opportunity to review the inns-for-sale-websites sent to us by our bed and breakfast broker (there's got to be a shorter, better name for that job). Unfortunately, these sites arrange the inns by state, so that you need to know the various areas within the state to know if the inn is in the location you want. Make sense? So, after scrutinizing the sites several times over we've developed a list of five inns to see when we visit in two weeks. FIVE. That's it. AND that includes one inn that is WAY out of our price range and two that are quite likely bad business opportunities. Sigh. The "expensive" one is a fancy shmancy boutique inn in Napa. It's lovely. It's perfect. It's what we would want to end up with (not start with). The two smaller inns include the historic inn, which we discussed in an earlier post, and a four room inn, which is simply too small to be profitable for us. All this leaves us with the two possibilities we identified initially, both in Sonoma. Though one has an unfortunate name, both are a decent size (six to seven rooms each) WITH space for expansion. We plan to see all these when we visit Napa, but it seems that our biggest challenge in opening a bed and breakfast may simply be finding one to buy.

Looking Forward to August

Yesterday our bed and breakfast broker sent us a cryptic email. This was in response to an inquiry about our schedule for when we visit Napa to look for properties in August. Her email said "I think you and Steve would be better served if we spoke by phone rather than email." Immediately we thought of the negative. Were there no properties to be had? Were banks not lending? Was she quitting the business and abandoning us mid-search? After some hand-wringing, we finally got a hold of her. It turns out that she simply wanted to find out more information about what properties we would like to see while we are there. She forwarded us links for several websites where we can search what is currently available. At first glance it seems that there are only two properties that are based in the area that we are interested in (Sonoma). We will have to do some research to determine if the locations of the others are viable. If nothing else, this narrows down our search considerably!

Next Steps

Now that we have a signed contract for the sale of our apartment in NYC, we're able to look more closely at our finances to determine if buying a bed and breakfast is truly feasible. Our real estate broker in Napa recommended a contact at a local small business lender, so we will be working with them to figure out what we can (or cannot) afford. This, along with the overall availability of inns in the area, will ultimately make the decision for us. With this in mind, we've scheduled a trip out to Napa in early August to meet with our broker and see some available bed and breakfasts. We're keeping our fingers (and toes) crossed.

Thoughts on Color

When we started to think about how we would like to differentiate our rooms from one another, we immediately thought to use color as the basis. Oftentimes in wine country bed and breakfasts, you find that the rooms are named by varietal--Chardonnay, Zinfandel, Cabernet. Appropriate as this may be, to us it seems hokey. Really. We know most people come to drink the wine, but must the room names reflect this? It's been done before. Clearly rooms based on colors has been done before too, but this somehow seems more straight-forward and less cliché. Also, it provides a sensible basis on which to decorate the rooms. How do you decorate a Chardonnay room versus a Zinfandel room?

On the Design*Sponge website (again) I found two mini trends that could provide inspiration for how two of the rooms could be color-themed. One was "bright white" and the other "delft blue". Although I have concern that a bright white room could easily become a dull white (or worse, dirty white) room, it could be very beautiful and serene. I also like the clean sophistication implied by delft blue. Some other thoughts we had were to use J. Crew-type color names that could provide both visual and color decor cues, like Sage or Lemon.

Roller Coaster

A large part of our being able to buy a bed and breakfast is dependent on the sale of our current apartment in New York. When we put our apartment on the market in late September it was not exactly an ideal time, given the economy. And so, it took what seemed to be an interminable schedule of open houses before we finally received a valid offer. As luck would have it, a second person came forward with a competing offer while we were in the midst of negotiating with the first party. We ultimately decided to honor the first-come-first-serve principle and had a contract drawn up with the original prospective buyer. However, no sooner had we received the signed contract, was another, significantly higher offer made. 

Now at this point, we were in a sort of legal-limbo. After much back and forth with our lawyers to try and determine whether or not we could go with this new offer, we decided that there was much (money) to gain by taking the higher offer and that, though risky, it was legal. Due to some surrounding legal issues, our lawyers planned to reject the original contract the next morning rather than immediately. And then we received a call from our real estate broker. Apparently this second buyer--who yesterday "LOVED" the apartment and was "seriously committed" to purchasing it--had woken up with a change of heart. WHAT?!? A quick scramble to contact our lawyers ensued as we had only until the end of the day to sign the original contract before it expired. Thankful that we still had this option, our hearts were racing. 

But wait, there's more. In the middle of signing the contract with the first buyer, the second buyer called back yet again with another change of heart. She was still interested, but now too late. You snooze you lose. I guess these are the things you learn when you're 25 with more money than you know what to do with (as this second buyer is).

Back to School

We've determined that to best prepare ourselves for the reality of owning and running a bed and breakfast, it would be a good idea to take a seminar on innkeeping. Who knew there was even such a thing? In fact, it turns out there are a great number of seminars available. The bigger issue is finding a conveniently located course that we can coordinate with our busy summer schedule--three triathlons and a 200 mile bike ride, anyone? At this point, we've settled on a seminar held in late September, in Durham, NC. Mind you, Durham is not what we would call "conveniently located" to New York, but it's logistically easier to get to than some of our other options. We're holding off signing up for the course until we've developed our business plan, since if we can't prove the viability on paper, there will be no bed and breakfast to run!

Mirror Mirror

While we continue our search for the right property to acquire, we are also starting to collect renovating and decorating ideas. The two above were from a post I found on Design*Sponge. A wall of mirrors--perhaps running down a hallway--will reflect light, add a feeling of openness, and decorates without having to commit to a particular theme. I also like the classic color palette--grey and white. Again, quite beautiful yet inoffensive and universally appealing.

Secret hotels of the Loire Valley

Recently, while reading the latest news online, I found a travel story about young European couples transforming old châteaux into charming inns. The article is littered with ideas that would be appropriate to our own undertaking--brioche with fresh goat cheese, honey, and walnuts for breakfast? Check! Artisanal jams? Check! Renovated historic building? Toile bedding? Blond-wood floors? Check! Check! Check!  Of course, I'm sure this sort of thing is no surprise given the availability of such châteux scattered across the French countryside. That said, I was no less inspired about their endeavours since this is essentially what we hope to do.

Historic Inn

This week our bed and breakfast broker sent the first listing for us to review. It is a historic inn located in Calistoga, California. This is on the northern end of Napa Valley and listed on the National Register of Historic Places. There is a charming wrap around porch ideal for hosting afternoon wine hour, and the obligatory white picket fence surrounding the property. Although we find this quite appealing, we have concerns about the building's structural integrity (it was built in 1860). We are also concerned that the cottage only has 6 units to rent (our ideal would be 8), and there is no owner's unit currently on the property. This means that we would have to build a separate owner's cottage for us to live in. As fun at that sounds, it could also be an additional expense we would rather not undertake. We'll hold off on requesting more information on this property (ie. financials) for now.

Inn-spired

It all began in August 2001, when we visited what we now consider the benchmark of all bed and breakfasts--Chateau Talaud in Provence, France. Of course, the Chateau had a lot going for it to begin with, being in France and situated on it's own small vineyard. But the overall experience has been a lasting one for us. With each new bed and breakfast that we visit, we are continually comparing it to everything we loved about Chateau Talaud. Where was the wine offered upon arrival? The long drive flanked by Cypress trees? The one and a half bathroom suites with soaking tub (and mind you, that tub was big enough to fit a 6' person comfortably). We began to think that perhaps, the French knew something not only about wine, but also creating a special b+b that Americans didn't.

Much like the American wine industry learning from the French to set down successful roots in California, so are we hoping to take what we've learned and create our own European-style bed and breakfast in the heart of the California wine country. This is the beginning of our journey.