I've spent ten out of the last 15 years renting in Sydney and Melbourne and have decided that inspections during tenancy are a myth. I think LL's get lucky rather than have good PM's based on my experiences.
Some posters in this thread seem to have difficulty differentiating between a reward and fulfilling your contractual obligations.
Landlord receives rent, tenant receives right to occupy. This is not a reward on either side.
Not sure to be honest - most of what I saw concerned the pub type of hotel rather than the accommodation type.
They were a lender of interest as they did 70% LVR on pubs, then apparently decided they were over-represented in that industry.
Bankwest shafted a large percentage of their hotel owning commercial customers a few years ago this way.
Order a valuation on the security with instructions it be a fire sale valuation.
Valuations came back far below previous valuations
Margin calls placed on those whose LVR is now out of...
Says its 2011 Law so hardly a new introduction. Perhaps enforcement is new.
You are trying to hard to force this to work. The opportunity of a lifetime comes around about once a month.
If the guy is in a hole financially it is because of this business. Chances are you will be the next person in a hole financially because of this business.
Things that jump out are
=> rent from personal premises
=> lack of licence fees - No music played? No food on site? No council place of assembly required?
=> check insurance coverage to make sure it includes public liability, business interruption, building and contents...
Whats the split on equipment/stock and goodwill?
Ask for copies of bank statements to prove income
My main experience is in hospitality businesses where most of the time, value was 3x net profit. In your case this would be $30k.
I'd be very concerned about this one - hope you have a tonne of...
Once from memory.
House in Tas was advertised for $94k around when things where booming down there. Rented for $180pw. At open agent told us best offer was $94k, full asking price. We offered $94,100 and got it. Sold it 2 years later for $185k