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What commissions are yopu paying to brokers to sell a motel?
I have clients from overseas lined up to buy in Sydney CBD especially hotels/motels. Problem is there is no stock at reasonable yields. Anything that becomes available will be quickly sold. The big agents are a problem because they accept listings at unrealistic prices which are not borne out by due diligence. Many commercial loans will have to be refinanced soon and this may lead to some more stock. Reegional towns provide far better returns for investors.
To answer your question. I do this for a living. Just yesterday I saved a prominent Doctor about $30,000 by giving him free advice about a property purchase he was about to sign for. He does all his own research and pays a great deal of money for it – all the best too – everything from people such as Matsuik, Ryder,the Banks,IBIS etc. He is highly intelligent etc. The moral of the story is that you can't know everything. Why are people reluctant to use professionals when dealing in large investments?
It always amazes me that a person wanting to sell his $8m home won't pay a valuer $300 but will rely on an estate agent for selling price advice. You have got to be kidding! Do your own research, learn and know as much as you can – then still employ a professional – because now you know the questions to ask and are better informed to assess the advice. It all helps in making the best possible decisions. And what is a few thousand dollars over the life of a sound property folio? You will save more by getting the professional advice.
Avoid 'clubs' and seminars – they are all traps for the unwary.
Ask yourself why would a person who claims to own 100, 200, 300 properties be wasting their time running seminars? Why are they not out there just quietly buying up all those properties they are trying so hard to sell to their club/seminar members?
I am an CA specialising in taxation, trusts and due diligence for large commercial purchases and I despair about the total rubbish advice that people use to make property buying decisions.
There are sound professionals out there. Use them and pay them their fees – they are worth every penny to you.
