Finance for motel acquisition

Viewing 5 posts - 1 through 5 (of 5 total)

Ems
Participant
@ems
Join Date: 2007
Post Count: 23
January 5, 2016 - 4:27 pm
Just looking for some guidance on how to secure finance for a leasehold motel purchase. What kind of LVR could one get if going leasehold? Is vendor finance ever available in this type of purchase?
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
January 6, 2016 - 6:16 pm
Leasehold motel business purchase? They’ll generally want property security from the directors/guarantors, historical financials for the motel etc.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone Me
Investment Focused Finance Strategist - servicing Australia-wide
BuyersAgent
Participant
@knightm
Join Date: 2005
Post Count: 338
January 9, 2016 - 10:06 am
Vendor finance is always case by case, you just need to ask. If they are older, retiring, and motivated to sell you never know your luck, just pitch the income they will receive. If they want their capital out you are probably not going to get very far.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone Me
South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
thecrest
Participant
@thecrest
Join Date: 2004
Post Count: 992
January 10, 2016 - 5:52 pm
Assuming the business is viable and not under threat, think 50% LVR and a valuation, and the lender will look closely at the CV of the business operator as well
Will you be operating the business yourself ?
Is the business in good condition ?
ROI ?
Any upside ?
KnightM is right about asking.
In structuring your offer or suggested scenario, consider the low returns available to retirees for investing cash and what the banks are charging for business loans.
Ask them what would attract their investment ? You might be surprised.
What style of motel is it and general area ?
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Me
selling motels in NSW
thecrest
Participant
@thecrest
Join Date: 2004
Post Count: 992
April 25, 2016 - 9:20 am
Hi Ems. Did you make any progress with the motel finance?
Any info to feedback to the Forum ?
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Me
selling motels in NSW