Forums / Property Investing / Commercial Property / Finance for motel acquisition

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of EmsEms
    Participant
    @ems
    Join Date: 2007
    Post Count: 23

    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?

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    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

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 317

    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

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 990

    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

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 990

    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

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

You must be logged in to reply to this topic.