Motel leasing

I have read a lot of forums on this site re: Buying a leasehold for a Motel but some of the 'chats' are a little old so I thought I'd ask for advice and information.
I am thinking of purchasing a motel leasehold, and will probably start looking in country Vic, I am not really fussed about which area at this stage. I am still researching.

Now the questions
I have approx 380K equity in my PPOR, still have a mortgage of 86K. Ideally I would like to rent out the PPOR and use the equity as a down payment for the lease. Is this possible?

What is the best way to get knowledge and experience in running a motel?
There is a 4 day course is offered, or approaching a friendly motel manager and asking for time. Is there some other way?

Is there a financial advisor that I can go to for advice?

Hi JJMB.
You've mentioned some good ways to get started already.
Talking to moteliers is prime networking and essential.
Searching this forum for postings about motels will help.
There is definately a lack of information and no advisors
except those selling you something.
I've spent a long time posting as much motel material as I could on this forum
because I found it hard to find information for myself when i was searching.
Helping out at a motel is worthwhile. There is no other way unless you
attend one of the hospitality colleges for 3-4 years.
Talk to brokers, get some figures from some motels to look at, burn midnight oil.
It's a slog but there's no other way.

Yes your equity can be used to buy a leasehold.
Cheers
thecrest

the cosmos always delivers so order carefully

Hi JJMB,
I am a Motel Leasehold owner and happy to answer any questions you may have. I was very raw when I purchased my leasehold, and learn t very quickly by asking other motel owners. You will find other owners are happy to talk to you as they also gain new insights to the way others run their motels.
If you need any experience and willing to travel to Far East Gippsland, we may be able to work something out for you.

You can get alot of info from "thecrest" just click on his posts and read the comments. I am sure you will benefit. He has been a great help to me in the past.

cheers and good luck.
Earlstongardens.

Good on you Earlstongardens, that's a very good offer for JJMB, you're a good example of a helpful motelier, great way to get experience.
Cheers
thecrest

the cosmos always delivers so order carefully

Something else occurred to me, a few motel broker ads mention motel on the market due to poor health.
Now that sounds like there's someone who could use some help and provide some hands on experience.
Win win.
Cheers
thecresto

the cosmos always delivers so order carefully

I'm interested in entering the motel business and would prefer to purchase a leasehold motel initially. I really like the Lake Macquarie area and am interested in peoples opinion on whether this area is a good investment location for motels and what should I look for in a motel around this area. Warner's Bay appears to attract a lot of people with a cafe and restaurant district sitting next to the lake. Other questions I have is what hours are involved in running a motel without staff for a 20+ unit motel? What questions are important to ask about the property being sold? Any advice you can provide would be greatly appreciated.

Cheers

Hi xavier1.
Welcome to the forum from me as just one of the many members here.
It might help others to help you if you could list some of your priorities or wish list such as :
Restaurant or not?
Price bracket
residence size required
star rating
holiday or business type motel
are you a couple in this venture
relevant skills

just some outline might help.
cheers
thecrest

the cosmos always delivers so order carefully

Thank you.

I'd prefer not to manage a restaurant, possibly could be leased separately. I'm looking in the vicinity of $500k, minimum 3.5 star rated, can have 20+ units, would like to cater it more towards holiday than business. No real relevant skills as i have, over the last 20 years worked in the retail, IT and health industry. My work now entails alot of networking and stakeholder engagement. I very much enjoy socializing with people and to a certain extent am a perfectionist. I have a diploma in accountancy and microcomputer technology. I have been interested in managing my own business for awhile and have always had a motel in mind. This is a venture that I would take lead on but my partner would help part-time.

Any advice you can provide would be appreciated even if to recommend courses I should do.

Thanks

Hi Xavier01.
Your skills would add much to a "low tech" motel - one that has been operating without a good website or strong internet presence.
Perfectionism is a hard slave driver but pays big dividends in hospitality, especially in areas of bookings details, repairs and maintenance, and room condition and presentation.
Attention to detail impresses all guests and generates return bookings.

You're correct about food if you're not a foodie, let someone else do it, nearby.

Business guests are good bread n butter in between holidays, and they are homing pigeons, they like to keep returning to the same place to stay because it works for them, unlike many holiday guests who will go somewhere else next time for a change. Tourists like new, reps like dependable.
Needs 2 people so you'd have to plan to replace your partner's partial absence with a casual.
With your skills and background, and provided you engage with people, look after them, and they like you, you have what it takes.

Ensure when you profile a motel that your strengths address it's weaknesses and vice versa.

Cheers
thecrest

the cosmos always delivers so order carefully