20 unit motel $205000 short what would you do?

[james_w]

Hi,

I have come across a 20unit b&b motel in a large mining town/city in queensland and have talked to a broker however they are only willing to go 60% on purchase price which prices us out by $205000 asking price 1.25mill our cheeky offer price 1mill with a good possiblitiy of getting it net income 200k a year very large mine and farming area and cheapest rates in the town and could possibly get a larger income from talking to the mining honchos

and leasing on a permanant basis as already has several contractors staying there also has a valuation of 1.5mill. another option is to lease it out room by room as it is an expensive tight rental market area with the chepeast rental at $300 a week 2 bed flat 1 bed unit in cbd $385 motel is in the main cbd so what would you do?

1 thing that crossed our minds was getting 2 other investors with the 102k shortfall each would rather own it ourselves though but seems motel lenders are few and far between with 60% lvr now the norm from what I can find any better lvrs would love to hear about otherwise anyone interested in owning a share in the motel what sort of returns etc would you expect?

thanx

James

 

[boomtown]

Ask Rio Tinto for finance assistance in return for a 2 year lease on favourable terms. Or whoever is the mining company in town.

 

[james_w]

Ask Rio Tinto for finance assistance in return for a 2 year lease on favourable terms. Or whoever is the mining company in town.

thanks boomtown never even would of considered this yeah RIO,BMA few others can't think of em off the top of my head just hate to see this deal go to waste l been on the market awhile now.

 

[Aaron Sice]

100k is a pretty standard LOC these days - good return for the money....