EmsParticipant@emsJoin Date: 2007Post 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?Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010BuyersAgentParticipant@knightmJoin Date: 2005Post Count: 330
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.thecrestParticipant@thecrestJoin Date: 2004Post Count: 992
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 ?
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 ?
thecrestthecrestParticipant@thecrestJoin Date: 2004Post Count: 992