- rossandjacquiMember@rossandjacquiJoin Date: 2011Post Count: 1
Hi everybody. In need of advise about motel lease purchase on the north or south coast of NSW. My wife and I are in need of a significant career change, me especially after 30 years of dentistry! We have equity in property of over 1 million plus other assets and we are looking for a motel along the NSW coast. We are currently living in SA but want a real sea change. At present we are in Queensland on our way to the coast so would appreciate some advise on the best spots to check out and does anybody have anything to sell? Probably looking in the 500K mark as would feel comfortable with this amount considering this will be our first adventure into this exciting field. Does anybody have advise to a new comer? Have started the research through motel brokers and many internet sites with details on purchasing. Does anybody know of some great web sites to help? We like the idea of a motel with no restaurant is that a good idea or should we try and go for it and look at this aspect too? Having no experience in restaurant running certainly seems daunting. Thanks for any comments, suggestions or properties that they know are on the market, Mr Keen, RossJacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539Anthony KParticipant@anthony-kJoin Date: 2010Post Count: 56
Dear Ross and Jacqui
I attended a seminar in Port Macquarie a few years ago with Russ Dodson, Google him at http://www.familyfirst.net.au.
Russ is a very impressive guy who knows everything about the industry as he has sold many motels and owned and run a number as well.
He can put his fingers on any detail in the industry or knows where to get it.
If you want help to structure the purchase, let me know.
Anthony at A4companies
Hi Ross n Jacqui.
Tailor the motel to suit your existing capabilities, unless you want to re-invent yourselves an awful lot.
You should be aiming for a rock solid performer, position position position, a very forgiving business for newcomers.
The banks will only lend to a newcomer if he has big collateral and seeks a solid performer.
If you’re not a great handyman, buy a later model which is in better condition, requiring less maintenance.
If you have no restaurant experience, avoid buying one. They require an extra 40 hrs per week, staff drama, less profit than accomm.
Ideally then the motel should be located one or 2 blocks from evening food, e.g. restaurants, cafes, club (the best ).
Look at heaps of P & L’s of motels for sale until you understand them. Set benchmarks so you can compare apples to apples.
ABS provides free occupancy and yield stats on locations, ring them and ask.
Most motel brokers don’t care what you get saddled with, they only make money when a motel changes hands.
If you like an area, doorknock all the motels and talk to owners & operators.
There is little or no capital gain on a coastal leasehold unless you increase the nett profit which could take a while for a newcomer.
So it’s ROI, cashflow, free home, meet people.
If you have time to look and wait, consider freehold for better investment security for a newcomer.
Most vendors and motel brokers just want a transaction, so you must educate yourself to a safe level before you buy.
Feel free to PM me your email address and we can do more by email.
thecrestlittlelotParticipant@littlelotJoin Date: 2003Post Count: 9
Hi ross and jacqui, seems we are in the same boat, except I am moving from Qld in a few months to purchase a motel (leasehold or freehold) on the NSW South Coast. I have started communicating with a number of brokers including the possibility of a partnership. I as well have nil previous experience in motel industry but feel it will provide me and daughter with "lifestyle." Let me know how you fare and maybe we can compare notes. I am travelling down there on 17th October for 2 weeks to start looking and hope to purchase early in the new year. I am on the gold coast and free any day (i work nights) to chat. [email protected]alrox11Participant@alrox11Join Date: 2011Post Count: 2
anyone got any comments on leasehold motels in Narromine , is Narromine a good motel town or poor like a lot of the other small towns.
TripAdvisor lists only one motel in Narromine, might be other accomm though.
thecrestalrox11Participant@alrox11Join Date: 2011Post Count: 2
Around the 200k mark , with turnover of 300k but there's slim picking's. Narrowmine is good at the moment because of the mines around but motel leases outlive mines and what then another Warren or Wee Waa .
All kinds of creative deals short or long term are possible especially if you doorknock an area and discuss options and vendors needs to find win-win opportunities, it’s amazing how much vendor finance is available.