First Big Purchase

Hi all... current portfolio = approx. 1.4M mortgaged at around 70%.

We are looking... possibly pipe-dreaming at a project somewhere between $2M - $3M.

The basic numbers stack up -- but very worried about overpaying, and also worried about serviceability.

Property is currently grossing around 200K per year - with potential to expand to maybe 350K. It would also become a full-time live-in management job.

Does anyone have an excellent 'feasability' and/or 'service ability' excel sheet they can share?

Also -- do I talk to a run of the mill lender? Will they help us with due diligence because we are an existing customer.
 
You've said a few things that indicate that this is not a simple residential deal. I'd suggest you talk to a specialist commercial broker with regards to finance because a simple spreadsheet isn't going to give you accurate answers.
 
Correct

Agreed - quite likely need to speak with commercial broker and/or financial advisor.

Its a lodge. 4 bed residence plus 4 x 18 room lodge.

Financials look promising - but need to do some sort of feasibility study.
 
Oh I see. This requires a specialist spreadsheet which I've used before. Not too difficult...financing is hard due to the type of security and I suppose you are buying the leasehold and freehold?
 
lease or free

I assume it is freehold.

The vendor is owner & operator.

Is the spreadsheet freely available, or at a cost?
 
I assume it is freehold.

The vendor is owner & operator.

Is the spreadsheet freely available, or at a cost?

Yes so you are buying both the Freehold (the property itself) and the Leasehold (the business). You have to value each one separately as technically speaking a lender will only lend against the value of the Freehold as this is the one with a tangible asset.

I think I have a spreadsheet somewhere PM me if you want and I can send it if I have it.
 
Anyone have thoughts on best ownership structure?

I plan to pay myself a wage of 50K... which should hopefully leave an operating profit of around 170K per year --- the aim being to pay off the mortgage as quickly as possible.

Any thoughts?
 
You will generally need around 40% of the cost for this type of investment

30% deposit 10% for closing costs stamp duty legal fees accountant company setup etc
 
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