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Some real gems there, thank you.
” If there’s anything wrong with your transport or communications, the rest of your day will be uphill so fix those immediately. ”
” If it doesn’t make sense, you probably don’t have the truth. ”
” When you’re minding kids, never run out of jelly beans .”
Cheers
thecrest
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This reply was modified 2 years, 5 months ago by
thecrest.
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Another Update.
While we had a good month or 2, the travel and accommodation market was locked up again by Covid.This week has seen the turnaround we’ve all been waiting for in the motel industry. How quickly 20% occupancy can become 70%, and full rates.
Motel P & L’s over this extended Covid period are very revealing and provide real life worst case scenarios rather than projections. The period also revealed the calibre of landlords and banks. Positive changes are coming for lessees as a result so watch this space.
Hope those investing complete very thorough due diligence and take advantage of the finance and legal experts on this forum who are very generous with their hard earned experience and expertise.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Vaguely remember something about their name but too long ago. So it sounds like part of what they do is act as a buyers agent, selling off the plan, developer, builder, finance broker, property manager, etc, is that right ? How does 3% compare with buyers agents’ usual charges ? Anyone ?
Cheers
the crest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Time to update.
Unfortunately since mid March 2020 with Covid, the motel sector has suffered considerable losses. Various Govt assistance packages helped like Jobkeeper and CCoC re rent etc, but in simple terms – stop travel and you kill motels. Travel confidence was damaged by relentless heavy media doom n gloom, and border closures stopped travel altogether. Things have improved this month, almost back to normal turnover. Business confidence is low in the accommodation sector where heavy losses were experienced, but everyone is soldiering on anyway.
Covid period P & L figures can be very revealing for potential buyers, showing how a motel coped with the worst conditions the world could throw at it, and to what extent. Under normal circumstances , those what if disaster contingency figures are normally not available and only estimates at best.
Banks are slowly lending again, but better to make finance enquiries direct to the expert finance brokers on this forum.
Potential purchasers of leaseholds should be fully informed of any liabilities or deals made between the lessee & lessor that may be binding on a new owner, like amendments to the lease, deferred rent, etc.
Hope you all are recovering or prospering. Looking forward to the good times again.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi TTRTR.
Check your inbox for private messages.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi TTRTR.
You need to sort out your finances first, before you go shopping so you know what price bracket to search.
For loans – Offering assets which would be difficult to seize & sell under default conditions won’t help loan applications. Suggest you find an expert Finance Broker – there are some in this forum.
There are plenty of buyers for secure 8-9% passive income returns, so quality investment motels in good condition and location with a good tenant in place are in demand. That’s why a motel broker would help with early market information. In a fast market, you need to be prepared to move fast as well, or be prepared to miss out.
Email me for a broker’s details.Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hope the cut in cash rate last week is good for all forum members ?
Any downsides ?
Great for buying or selling motels as banks have been tight lately and this should help.Our motel leasehold is still for sale although price is very low. Too much irresponsible and unnecessary discounting in local motel tariffs has hurt the market.
Good buying time.Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi @au43.
Welcome to the Forum. Yes it’s full of very helpful and experienced people for which I’m grateful.
$300-$400K could buy a good leasehold around $700-$800K mark at 30% ROI. Banks usually want 50% dep but check with finance brokers on this forum for current accurate info on finance. Check lenders LVR re property to see what % of your equity in your property they will lend against. Used to be 80% so if you have $400K equity they will consider $320K as a deposit. Used to be if you used residential real estate as security you could borrow at residential rates, but again, use the finance expertise of brokers on this forum who have notched up huge numbers of posts helping heaps of people on this forum, because they are awesome. A scenario could be : buying a motel leasehold with a “free” residence included, and rent out your home so you stay in the real estate market back home, and your home becomes an investment property and rent helps offset the loan. Lack of industry experience can be offset by buying something rock solid. Your CV will be taken into consideration by lenders no doubt. Also favorably considered and desirable for you as well is a (rock solid) simple motel with enduring reasons why it would continue to provide the quoted returns, which would give you time to gain experience. As an example, that could be a country motel (no restaurant) next door or across the road from a financially sound RSL or Bowling Club, in a stable and growing town not overpopulated by competitor motels, not scheduled to be bypassed,and with little likelihood of the Club building its own.
Other ways to offset lack of experience could be buying a branded motel, like Best Western or Golden Chain, and using outsourced “revenue management” and social media/ online reputation management expertise and I.T., (as we do). Unless you have expertise in any of those areas yourself.
A coastal motel would also work, income is seasonal and average annual return ROI is 3-5% lower than inland, (due to land value).
There are some motel industry trainers but not sure what they’re like.
That’s a very brief overview.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi jt.
If you own the leasehold, then you can sell it to the landlord or anyone else, provided you comply with the terms of the lease. Usually the lease terms say the landlord must approve of the purchaser as a prospective tenant, and also the landlord must be given the first opportunity to buy it at the agreed settlement price, (first right of refusal) . Always good to plan your exit strategy before entry. Compare values of 19-20 year leases with 25-30 year leases.
What area and type of motel are you interested in ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
The concern in overseas locations should always be investment security, continuing visa and licencing approvals, 51% is scary, been there. Paradise beckons, some places are graveyards for unwary entrepreneurs. No doubt there are ways around the obstacles in every location. Good luck.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Motel industry has sure changed over the last 2 years.
Online success now decides the business outcome unless its a motel next door to a people magnet like Rod Laver Stadium or some other major attraction. Definitely going to the AO there in Jan 2019, it’s on the bucket list.
If you’re considering an investment in this area, there is upside in motels which are under-performing online. Experts in “Revenue Management” with proven success who optimise motel performance using online techniques like dynamic pricing and market positioning, social media promotion, SEO, etc are in high demand and competition in the online arena requires expertise.
Essential services are IT, Reputation Management, Social Media, SEO and Revenue Management, to be brief.Quality properties are available however the importance of location location location is increasingly moving more towards positioning online rather than geographical, because that’s where guests find a motel first.
Disrupters and others who blitz the TV with ads are being a thorough nuisance and advertise services and prices incorrectly. We frequently compare a few simultaneously and note the differences, including prices for our own rooms which don’t exist.
Suggestion to any traveller – book everything direct and save – accommodation, car, transport, dining. No prizes for guessing who ends up paying for commissions of agents and middlemen.Own own motel is still listed for sale and should sell soon, always fingers crossed like all vendors of property or business. With lots of luck, Govt might do what they’re saying and abolish stamp duty on sale of businesses and leases but not holding the breath.
Hope you’re all enjoying success and 2018 is great.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Terry.
Great post, also affects us as having sold a motel with the CGT factor.
How is the 15 year exemption applied ? Is it applied to the one business or can it be applied where we have been substantially in the same business class for 15 years, similar to the rollover, where CGT can be deferred and it can be rolled over if one is buying substantially the same type of business ?
Any ideas ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Picky1.
Have you made any progress with the motel or with the refurbishment experts?
Care to update the forum with any info ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Ergoudan.
Banks should be able to give you some ball park figure based on knowing your circumstances and by you giving them an example motel showing costs, turnover, age, condition, size, facilities like pool, restaurant, land size, historic figures, SWOT analysis etc. You need them to give you an indication of how much $ you can go shopping with. LVRs differ between applicants and motels and current economic conditions. Start with what you want and why.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Dave.
Making any progress ?
Motels sell quickly if listed at market price, with clear clean figures over min 2 years.
Great pics essential.
Buyers usually check all the major brokers’ websites plus realcommercial and a few others, so biggest not necessarily best.Happy just to help on the Forum, or contact me, no fee, busy selling my own leasehold right now as well.
Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Ems. Did you make any progress with the motel finance?
Any info to feedback to the Forum ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
All in with one bank ? No, never again. Brokers provide expertise and leverage.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Remember you don’t have to agree to move out before your fixed period of the lease expires, you can stay if you want to. Of course, the new owner can give you notice to vacate on the expiry date Feb 17.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Mystery shopped a local rental agent to find a property to rent. Requested an inspection on a rental property but was told they would be done as an open house for half hour sometime next week. I asked again saying I’m time poor because of the demands of my motel business, but same response, still no action. It would seem they want a process not a tenant. You only need one good one per property, why let one slip away. They lost another week’s rent for the property owner and lost a good tenant.
Definitely wouldn’t use those property managers.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Darkness72.
All very good questions, many of which VCAT could answer, pending the outcome of course.
Give them a call.
They also can provide mediation.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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This reply was modified 2 years, 5 months ago by
