This was first done about 10-15 years ago -- the first inn that tried it got a TON of free publicity, as did the winning innkeepers.  That produced a rush of look-alikes, until the media lost interest.  Without free media coverage, the seller doesn't get enough $100 (or $500) entry fees to equal his hoped for selling price, and the whole house of cards collapses.   I heard of someone trying it again more recently, but I would be very very careful.  If an inn can't be sold in the usual way, there's probably a good reason for it (including but not limited to major repairs and upgrades).  Also remember that you are still responsible for a significant tax bill if you do "win" the inn, even though you haven't won any cash to pay them with!  Remember, you get what you pay for....

Good luck!

Sandy

" If an inn can't be sold in the usual way, there's probably a good reason for it (including but not limited to major repairs and upgrades). "

I know most Inns for sale sit for sale for years, and the market is not getting any better.  There are some perfectly lovely small Inns that are not selling and never sell because the Inn does not qualify for a commercial mortgage (due to the exceptional tax-writeoffs, more often than not) and does not qualify for a conventional residential mortgage due to business use.  The majority of them have nothing wrong with them except their small size.

A Michigan Inn Broker recently told me that more small Inns in Michigan in closing or being sold as residences than are opening due to these financing concerns.  On the other hand, the market share for B&B's is growing....how sad is that?

Seems to me that paying $100.00 (or $500.00) to win an Inn (and incidentally, a home) debt-free is a great way for an aspiring innkeeper to get into an inn with little to no debt service.  You can alway take out a small mortgage to pay any taxes due on your winnings and most make at least $30,000 to $50,000 in revenue per year along with some great tax benefits.  It's certainly easier than trying to start an Inn from scratch; and for some, the only way it would ever happen!

Maybe it's too good to be true...I just wondered if anyone else had ever considered trying it.

W.

Right -- but the reason that the innkeeper selling the inn could afford to do this is because without the publicity, you're not going to get enough aspiring innkeepers to send in the fee that accompanied the essay.  For example, if you want to make $500,000 selling your inn, you would need to generate 1000 applications with a check for $500 each (or 5000 @$100) to get your price.  Without a lot of media coverage, it's a no go.  The problem is on the selling, not the buying end. Sorry if I wasn't clear the first time!

Sandy