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thecrest
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@thecrest
Join Date: 2004
Post Count: 992
February 4, 2010 - 1:44 pm
Sounds good so far.
Lenders are slightly easier to deal with now GFC wise on motel investment in regional areas like Albury & Wagga.
Don't know the Vic towns well enough but Wagga n Albury are strong motel towns, for different reasons, Albury is a bit disjointed geographically in the motel locations but has become a busy service centre, and wagga has military, tourism, uni, passing trade, big economy.
Sounds like you're targeting big strong country towns which is a good move.
Ensure you have an exit strategy when going in. You may want to sell it at some time.
Lease must provide well for you the landlord in defaults, CPI increases, clear inventory, who owns what, who pays for what and when, and provide an answer for the frequent sticking point of landlord's right of entry vs Bank's right of entry/seizure of leasehold in the case of tenant rent default or tenant mortgage payment default, . I would like a lease clause which says it is a default of an essential term of the lease if the tenant is late in any mortgage payment or any other financial obligation to the bank which might be a default of the loan agreement or cause the bank to takeover the lease etc . But I must be general here.
A quality investment of this type needs to be one without drama. This depends on a few items like ensuring the lease is structured correctly with sustainable ratios of turnover : tenant nett income : rent , so that it doesn't become difficult for the tenant to continue paying rent.   It also depends on the ability of the tenant as a motel operator, and the attributes and continued viability of the motel property and business, like location, size, rooms, chain, restaurant, star rating, local economy, etc.
The operator needs to maintain the star rating or equivalent, and upgrade/refurbish at set intervals to maintain market share.
Look at as many leases as possible so you know what the market expects or will tolerate.
e.g. Some landlords own the bathroom tiles, some don't. (pls don't).
Grey areas are future conflicts waiting to happen. Get rid of any gray areas and what is left should be black n white.
9.0% – 9.5 % is common right now, 10% is rare and may have problems attached. Some have high depreciation options remaining. Avoid towns in early stages of highway bypass or recovery from bypass. Plenty of due diligence required.
I have a lease I can send you if you like, need an email address, PM me.
Hope you find a good one.
Cheers
thecrest

thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Me
selling motels in NSW
thecrest
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@thecrest
Join Date: 2004
Post Count: 992
February 4, 2010 - 12:58 pm
Twould be helpful if someone could provide some feedback of any kind based upon direct experience with the organisation in question.
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
February 4, 2010 - 12:38 pm
Hi LJFZZ
If you can add some basic details it might help me and others to focus and be more helpful.
What aspect of motel investment are you interested in ? i.e. freehold, lease, passive investment.
Do you want to operate the motel yourself or not?
What geographical area interests you?
What price bracket ?
What type of motel – restaurant? stars? market?
It's OK if you don't have all the answers, but what you do have will help.
Very happy to help you, as are others on this forum which is what it's all about.
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
January 28, 2010 - 5:29 am
Hi Nick
There are some very deserving and professional brokers on this forum who've been helping lots of people with finance and free advice from way back and continue to do so, they're recogniseable by having a zillion posts and early join date.
cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Me
selling motels in NSW
thecrest
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@thecrest
Join Date: 2004
Post Count: 992
January 28, 2010 - 5:25 am
Tks W4L
appreciate it.
cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Me
selling motels in NSW
thecrest
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@thecrest
Join Date: 2004
Post Count: 992
January 28, 2010 - 3:52 am
Hi W4L
Great info and food for thought.
" Also all the wealthiest people in Australia invest there … John Symonns Aussie Home loans … Harry Trigerboth Meriton … Packers … the list goes on …" quote from your post – I merely commented on what you raised in relation to investment in CBD so definately relevant. This was why I mentioned Packers, I was commenting on these people because you raised them as examples .
Anyway, thanks for the info.
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
January 28, 2010 - 2:46 am
As I understand it, the spirit of this Forum is to help others and ourselves by requesting information, asking questions, and sharing information by posting it and discussing it.
AQs far as I'm concerned, this Forum is a fantastic place to get and give help, and it needs people with the right attitude.
If you don't want people to ask you questions, and don't want to share info, then don't comment on your interests or holdings, just stay out of the posts and the forum.
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
January 28, 2010 - 1:51 am
1. Why mention Japan China Korea or NY ?
2. Packers fortunes very mixed. Unsure about the others, most of 'em can afford to lose a whole suburb.
3. Following Packers n Murdochs has already cost me money in the past.
4. Care to share any real figures on Elizabeth Bay & Potts Point ?
Any real data appreciated
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
January 28, 2010 - 1:13 am
Hi W4L
Are you talking about walk-ups?
lifts?
how many floors?
strata costs ?
You gotta good agent in that area ?
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
January 28, 2010 - 1:08 am
The motel industry market is busy again, buyers are actively seeking properties.
That should make finance a little easier to get.
We are engaged with one prospective buyer of our motel property who has placed a deposit,
awaiting contracts and agreement on side issues.
Other prospective buyers are also vying for the motel property so we are feeling confident of a sale.
(Yeah like whistling through the graveyard)
For us it's the culmination of nearly 10 years of hard work.
Now that we know how to do it easier, we will.
Just thought I'd like to add an update for those who have interest(s) in this area of investment.
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
January 28, 2010 - 12:32 am
I wouldn't be too worried about the software engineer, he may be lousy at his job, and he may have bought a $2m apartment and struggling to pay the mortgage, no wonder. Might be a bad driver too.
Packer had to compromise – sold the QE3 to downsize to the $30m runabout last week, so it's all relative.
It's like these car ads where they say wowee it travels 1000 kms on a tank, yeah ? so how big's the tank ?
You're all doing the right thing re the RE market – you're doing your due diligence as we speak, sharing and asking online, mining all your resources for info before making decisions. ChristianB is right on the money saying take note of the demographers, like Bernard Salt for instance, and supply n demand, true and simple, never fails.
Our nearly 10 years of hard work is coming to fruition over the next month, our motel is under negotiation for sale and buyers waiting, industry investor confidence is high, buyers are active again. And, we are looking to buy motel leaseholds with the freed up capital. So we're busy doing our due diligence as buyers too.
Hope you all do well in 2010.
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
January 27, 2010 - 8:00 am
It's a comparison from time starting now really, as I see it.
Compare leaving the investment as is, or what could you earn elsewhere if you sold it for "market price" now and used the funds elsewhere. The past is gone.
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
January 19, 2010 - 11:24 am
Has anyone read Robert Kyosaki's "Conspiracy of the Rich" ?
I keep getting promo emails from them talking it up big time, but need to hear from
someone who's actually read it, not just the hype.
Suggest reading 10 books, incl Lomas, Steve, Rich Dad Poor Dad, go through the complete bestseller list of property investing, part of due diligence and compared to the real estate returns on sound knowledge, 10 books is cheap really.
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
January 1, 2010 - 3:15 am
Hi Mister
Don't dwell on it and let them get you down, they just don't care.
Offer very attractive terms for the local Agent(s) to sell it and let them look after the sale, and move on, otherwise it will sour your efforts and motivation.
The scum will show through in the next house for what they are for the whole town to see, without your telling anyone, and you don't want scum after you for slander on their "good name".
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
January 1, 2010 - 3:06 am
Congrats Ben on your launch.
Plenty of experts on here who can give you many scenarios, so crunch the numbers carefully to get the best return.
Finance is a vital ingredient as you know so make sure you discuss scenarios with the finance brokers here who have lots of experience and a willingness to help.
Good luck
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
January 1, 2010 - 3:00 am
Yay, finally found good managers for my motel, who will run it till it sells.
It's on the market with a number of brokers so if anyone is interested in buying a commercial property returning 10% rent from a long term tenant, or a motel leasehold to buy and operate returning 30% with a free home thrown in, please contact me.
This is a solid reliable investment either way.
Here's the link to the broker ads for the leasehold and freehold :
Leasehold – http://motelsales.net.au/index.php?page=properties.php&session=2012624130&id=1099
Commercial Passive Investment – http://motelsales.net.au/index.php?page=properties.php&session=2012624130&id=1100
Hope Admin don't mind me putting this in.
As always, if anyone needs help sussing out motel investment elsewhere, I'm always happy to help any way I can.
Happy and prosperous 2010 to you all, and plenty of successful investing.
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
December 23, 2009 - 12:48 pm
Quick reply as requested.
In theory $229K equity, mortgaged to 80% of its value, ( $183K) will enable you to borrow enough to buy a :
Leasehold for $366K ( assuming LVR of 50% ) or a
Freehold    for $457   ( assuming LVR of 40% ).
That does not include costs for stamp duty, loan establishment fee, valuation on equity, and legals etc.
If that equity is residential, then Banks used to lend at res rates to buy some types of commercial property.
Best to talk to one of the experienced Finance Brokers on this Forum to find out what the going rate is,in case it's not 80%.
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
December 12, 2009 - 4:06 am
No tenant? No income. Need to know the area very well to know what the market rent return would be and how long you would have to wait to get a tenant.
If looking at a tenanted property, important to assess the stability of the tenant and ability to pay.
Sometimes existing landlords have inside info about the tenant's forward plans and may try to sell the property as "tenanted," before it becomes vacant. Watch for leases getting close to periodic renewal, better to have been just renewed or renew lease for a longer term as part of purchase contract.
Usually the better the tenant, the higher the price of the tenanted property due to lower risk of vacancy or rent problems.
There are passive income tenanted motel leases for sale on 9% nett with 25 year leases, google motel brokers and check their passive investment properties. That'll be one of my retirement properties. I like their stability and ability to pay.
Good luck.
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
December 12, 2009 - 1:17 am
Hi D
What price bracket are you looking in ?
What geographical area ?
Any industry type preferences? e.g. factory, office, shop, storage, ?
Minimum return required?
Type of deposit or equity as collateral – cash, residential ?
Time period of investment ?
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
December 10, 2009 - 11:25 am
I thought you could PM someone on this forum, otherwise what are the inboxes for ?
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Me
selling motels in NSW