ergoudan wrote:

My banker has not been able to figure out how much I may be able to afford for me, so I am raising the question here, as many motel experts are on this forum. I have little idea about the banks’ LVR for freehold and leasehold motels. It seems that for freehold the LVR is up to 70% but is also depending on whether the sale is on split contract or not. Say if I have $300k of cash, would I be able to afford a FHGC motel of $800k, $700k or $600k? Any advice will be appreciated.

My advice is talk to a specialist in the Motel Finance Space – (not affiliated), but have dealt with Mike Phipps Finance, and specifically with Paul Grant and he was a pleasure to deal with. Outside of them, talk to the local motel broker and ask them if they have any contacts in the space.

Hi Jeet,

How did you end up going with the motel search? I think most on-site managers and owners would be open to a chat depending on how you start your discussion. I think if you just introduce yourself and say you are looking to get into and learn motel management as a starting point and from their if they indicate they are the owner you could proceed further.

Have you run a motel before? As Tony indicates at 20 rooms depending on a few factors you will likely be doing a fair bit of cleaning yourself.

I run Motel Coach a Motel Training, Management and Marketing Consultancy and Author of  📖 The Essential Guide to Motel Management.

Happy to throw around ideas or talk you through any concepts on here if you need?

• This reply was modified 2 weeks, 2 days ago by  Motel-Coach. Reason: Improve grammar