Hi Howard
Welcome to the Forum.

If you owned the freehold of a motel with a tenant in place, it is a passive investment, where the tenant operates the business and pays you rent. Typical rent returns around say 9% – 9.5%.

There are a number of criteria for the selection of an investment, and location is one of them. The strength and stability of the investment is only as good as the strength and stability of the tenant and his business.

While there are highway junctions out there where a motel would not prosper, high traffic flow is usually beneficial.

Assuming your $1.5m is in cash, and a lending body is willing to finance your investment, LVR at say 60%, then you might be able to buy an investment motel around the  $3.7m mark.  Unfortunately if interest rates rise once or twice, commercial loans will most likely be around 9-9.5%, so while the returns on your own cash input would be 9-9.5%, there would be little or no return on any borrowed funds, and the risk of future negative gearing on those borrowed funds if interest rates increased still further again.

Sorry I don't have a motel for sale, I'm an active buyer seeking a suitable leasehold to operate under management.

Brokers websites may be found by googling this and adding your target state on the end , for example
  " motel for sale queensland " .  Then sift through all the brokers' websites and motels for sale in the categories you want.

Does that help ? Hope you find something you like. Let us know how it goes.
Cheers
thecrest

Hi god_of_money
No I haven't, what's the story on them ?
Cheers
thecrest

Hi st81hp79
Looks like your intended words didn't make it on your post, only a quote of my post.
Please try again.
Any comments welcome.
Cheers
thecrest

Hi Catalyst
 

  "   I guess we're seeking a great accountant / financial planner who understands property, tax and investment structures, who is friendly, has a sense of humour, likes people and genuinely wants to help them with their wealth creation. " 

Thanks for your thoughts.
There are many great people out there, including "great" accountants, we'll end up with the right one.
Cheers
thecrest

Commercial property investors must be feeling the squeeze right now, with commercial loan interest rates near 9% which is about the same for many returns on commercial property. Makes it hard unless you have a big deposit.
But, don't forget, for those interested in motel leasehold investment, that motel leaseholds operated under management costing over $700K should return at least 20% under management, 30% plus a free home if you manage it yourself. 
I'm a fan.
Cheers
thecrest  

Here's a little Xmas cheer with mixed feelings.
There are some excellent motel leaseholds on the market right now for those seeking a motel.
And the buyers market continues.
We've found a great motel leasehold in good condition at the right price and in a strong location.  
Now we're trying to move the purchasing process forward.  However ….

In the market of motel leases and freeholds, we have entered the end of calendar year blank spot, where you can't get help on crunching numbers from an accountant, or find an active solicitor, or a broker who wants to work, so it means that making progress in the process of buying a motel leasehold or freehold very difficult.  Naturally there's no sense from a Bank either at this time of the year.  Feeling slightly frustrated by the Xmas blank spot, while at the same time enjoying the time with family and friends.  Ho ho     hmmm.

So guess I'll just go back and crunch the same numbers again in a different order and use the time to plan further.
A definition of "mixed feelings' could be the arrival of Xmas when you're trying to progress a property deal.

Hope you all have a very prosperous 2011.

Cheers
thecrest