DiBernardo, who had owned the bed and breakfast for years, was reportedly in the process of selling the property to Borcherds, who had been running the bed and breakfast for the past year with his wife.
But the proposed sale ended in a major legal fight between the two men, which came to a head on Wednesday night.
DiBernardo allegedly showed up at the property, tied up the victim's wife, and waited for Borcherds to return. When Borcherds arrived at the bed and breakfast, the suspect allegedly shot and killed him.
"Apparently they had some sort of civil dispute between the both of them and that may or may not have been a result of what happened last night," said Riverside County Sheriff's Sgt. Joe Borja.
DiBernardo was arrested shortly after the shooting. He's been charged with homicide, kidnapping and false imprisonment.
There were no guests at the bed breakfast at the time of the shooting.
Eyewitness News has learned Borcherds and his wife have owned a number of hotels and other properties over the years, many of them tied up in legal and financial troubles. They were reportedly hoping for a fresh start out in Temecula and were trying to fix up the bed and breakfast before they became the official owners.