Should I pay cash or borrow to get a bigger lease motel?

This is a question I get asked a lot. Many people say oh I just want to pay cash for a lease business and it will make things easier. This is not necessarily the case.

The investment required or the costs of a motel will be reflective of the return derived from the motel. The return is usually assessed as a percentage cap rate and so a higher investment will achieve a higher dollar value return. This creates the basis for your decision to borrow or not to borrow. (more…)

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Which broker do you choose when buying a motel?

It is important you make the right choices along the way when you are looking to make a major investment such as when purchasing a motel. One of the important choices is that of which broker to use…

Often people think all agents are the same and so they just respond to various advertisements with lots of different agents. The idea of sameness is far from reality as various agents and companies can be quite different. (more…)

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Motel lease for sale: What is it and how does it work?

There are three ways of entering the industry. Buying a Freehold Going Concern motel (land Buildings and business), buying an Investment Motel (land & Buildings only) or buying a lease motel (business only).

For those of us who have been in the Motel Industry for a long time the answer to the above question seems obvious but we forget the day when we first entered the industry and asked the very same question. (more…)

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