How to Build $7.5m in Net Worth by Buying a B&B

Exactly. And when you own the real estate. Outright.

It'S a very profitable business. Yes. So if you owned the real estate outright, you'd bring in. You'd bring in $700,000 a year in profit, is that right?

Business, please. And specifically starting with head count. Sure.

So I run the business and am the full time innkeeper on staff. I have an assistant innkeeper that's part time, so he works about 30 hours a week. I have a full time housekeeper and then another assistant housekeeper.

So overall, I have hourly employees that work anywhere from, depending on how busy we are, 50 to 80 hours a week. Okay.

And when you talk about the profitability of the business, are you including the. The cost to yourself as operator? Because that, that is a.

That is a core operating expense of the business, obviously. Yes. Okay. Okay. And then tying that to your $150,000 salary you needed to replace. How much are you paying yourself? What is your cost as operator?

My salary right now is $60,000 a year. Okay, and how did you decide on that? That's, obviously that would be hard to live in Dupont Circle on that.

But as we've talked about, you, you, you are, can enjoy a lot of your family expenses kind of going through the business. But how did you decide on that 60 number? Yeah, I, I think it will be revisited and we'll do quarterly or biannual reviews to make sure we're zoning in on the right number.

It's about the market rate for an innkeeper and you know, that fluctuates a lot because whether housing is provided or not depends on the salary compensation. But it is about the market rate and that's what we just determined that. We. Required as a family and as direct take home during the first year.

At least one of the concepts that we talk about a lot on this podcast is the operator of the business. And so many of my guests buy a business with the idea that they'll be the operator at least for a while. But the, the larger vision usually involves them stepping out of operating the day to day business and really being able to enjoy the profits of the business without having to be the one…