Friend Offered to sell me their motel, need advice - Older friend wants to sell me his 28-room motel near a summer resort area for 1.3 mil. He's operated it for 20+ years. 4 bedroom house comes with it. Per Room Cost |His Offer|Motels Nearby|Hotels Nearby| |:-|:-|:-| |46,428| 41-50,000|55-60,000| His current yearly dedicated income is his weekly rentals. The other 14 he daily/weekend rents. His costs he ran down were: \- Property tax \- Gas, electric, water, sewer, trash, cable \- Flood, building, and liability insurance \- Linens |Time|Income|Expenses| |:-|:-|:-| |Weekly (14 rooms)|4,410|1,811| |Yearly (14 rooms)|229,320|94,200|  Weekly each room earns $315/week or $16,380/year. If I focus on the weekly model only accounting for increased expenses on items that would increase due to more demand:  |Occupancy Rate|Yearly Income|Expenses| |:-|:-|:-| |50% (14/28)|229,320|94,200| |60% (16/28)|262,080|123,960| |70% (19/28)|311,200|128,920| |80% (22/28)|360,360|133,880| |90% (25/28)|409,500|138,840| |100% (28/28)|458,640|143,800|  Example SBA 504 loan calc: |Sale Price|10% Down|Loan|Rate @ 25yrs| |:-|:-|:-|:-| |1,300,000|130,000|1,170,000|6.808%|  |Monthly payment|Yearly payment| |:-|:-| |8,127|97,519| Cashflow Model with SBA factored in: |Occupancy Rate |Yearly Income|Expenses + SBA 504|Cash flow on motel only|\+48k/yr for house rental| |:-|:-|:-|:-|:-| |50% (14/28)|229,320|191,719|37,601|85,601| |60% (16/28)|262,080|221,479|40,641|88,641| |70% (19/28)|311,200|226,439|84,761|132,761| |80% (22/28)|360,360|231,399|128,961|176,961| |90% (25/28)|409,500|236,359|173,141|221,141| |100% (28/28)|458,640|241,319|217,321|265,321| I have \~200k liquid and \~600k home. No mortgages or outstanding loans. 700 credit, but bankruptcy 2014. My income is around 60k/yr before taxes. I am handy (I've renovated homes before) and I don't mind that this is like buying a job. The cash flow would allow me to purchase other properties. I think this is a good step for me, but I ask you guys. 2 simple question: your thoughts and what am I missing? Edit: This is why I love you guys! I saw all the upside but didn’t account for every risk. I’m reading every comment at least a couple of times and weighing the options. SBA originator said that even if the business has been active for over 20 years, me coming in with little to no experience, they treat it as a startup. They did say though I would be qualified initially. Yes, the price is too high for me to risk my money on this thing. I’m waiting for the books and tax returns as well. Right now, it’s a 60% no, 40% yes. If the price drops and I get details, it might sway me. Again, everyone, thanks for your feedback!| ASX Mining News & Discussion

Friend Offered to sell me their motel, need advice - Older friend wants to sell me his 28-room motel near a summer resort area for 1.3 mil. He's operated it for 20+ years. 4 bedroom house comes with it. Per Room Cost |His Offer|Motels Nearby|Hotels Nearby| |:-|:-|:-| |46,428| 41-50,000|55-60,000| His current yearly dedicated income is his weekly rentals. The other 14 he daily/weekend rents. His costs he ran down were: \- Property tax \- Gas, electric, water, sewer, trash, cable \- Flood, building, and liability insurance \- Linens |Time|Income|Expenses| |:-|:-|:-| |Weekly (14 rooms)|4,410|1,811| |Yearly (14 rooms)|229,320|94,200| &#x200B; Weekly each room earns $315/week or $16,380/year. If I focus on the weekly model only accounting for increased expenses on items that would increase due to more demand: &#x200B; |Occupancy Rate|Yearly Income|Expenses| |:-|:-|:-| |50% (14/28)|229,320|94,200| |60% (16/28)|262,080|123,960| |70% (19/28)|311,200|128,920| |80% (22/28)|360,360|133,880| |90% (25/28)|409,500|138,840| |100% (28/28)|458,640|143,800| &#x200B; Example SBA 504 loan calc: |Sale Price|10% Down|Loan|Rate @ 25yrs| |:-|:-|:-|:-| |1,300,000|130,000|1,170,000|6.808%| &#x200B; |Monthly payment|Yearly payment| |:-|:-| |8,127|97,519| Cashflow Model with SBA factored in: |Occupancy Rate |Yearly Income|Expenses + SBA 504|Cash flow on motel only|\+48k/yr for house rental| |:-|:-|:-|:-|:-| |50% (14/28)|229,320|191,719|37,601|85,601| |60% (16/28)|262,080|221,479|40,641|88,641| |70% (19/28)|311,200|226,439|84,761|132,761| |80% (22/28)|360,360|231,399|128,961|176,961| |90% (25/28)|409,500|236,359|173,141|221,141| |100% (28/28)|458,640|241,319|217,321|265,321| I have \~200k liquid and \~600k home. No mortgages or outstanding loans. 700 credit, but bankruptcy 2014. My income is around 60k/yr before taxes. I am handy (I've renovated homes before) and I don't mind that this is like buying a job. The cash flow would allow me to purchase other properties. I think this is a good step for me, but I ask you guys. 2 simple question: your thoughts and what am I missing? Edit: This is why I love you guys! I saw all the upside but didn’t account for every risk. I’m reading every comment at least a couple of times and weighing the options. SBA originator said that even if the business has been active for over 20 years, me coming in with little to no experience, they treat it as a startup. They did say though I would be qualified initially. Yes, the price is too high for me to risk my money on this thing. I’m waiting for the books and tax returns as well. Right now, it’s a 60% no, 40% yes. If the price drops and I get details, it might sway me. Again, everyone, thanks for your feedback!| ASX Mining News & Discussion

Lykeshares 2y Official

Friend Offered to sell me their motel, need advice - Older friend wants to sell me his 28-room motel near a summer resort area for 1.3 mil. He's operated it for 20+ years. 4 bedroom house comes with it.

Per Room Cost

|His Offer|Motels Nearby|Hotels Nearby|
|:-|:-|:-|
|46,428| 41-50,000|55-60,000|

His current yearly dedicated income is ...

www.reddit.com/r/Entrepreneur/comments/16mk3lv/fr…

Lykeshares 127d Official

Berkshire is hoarding so. much. cash.

Berkshire is hoarding so. much. cash.

Lykeshares 127d Official

Intel’s been lagging behind for years, while AMD has pulled far ahead in both consumer and professional-grade chips, it’s really not a close race anymore.

There’s this idea floating around that throwing enough cash at Intel will suddenly turn them into the next TSMC. But semiconductor manufacturing isn’t something you can ...

Intel’s been lagging behind for years, while AMD has pulled far ahead in both consumer and professional-grade chips, it’s really not a close race anymore.

There’s this idea floating around that throwing enough cash at Intel will suddenly turn them into the next TSMC. But semiconductor manufacturing isn’t something you can rush, it’s a complex, slow-moving process that takes years of precision and experience.

Intel could recover some ground eventually, but framing them as the savior of American chipmaking feels more like a political talking point than a practical reality.

Lykeshares 158d Official

Buffet indicator is showing some wild times ahead perhaps, combine that with Berkshires record high cash hoard of 30%... chart via barchart.com / Longtermtrends

Buffet indicator is showing some wild times ahead perhaps, combine that with Berkshires record high cash hoard of 30%... chart via barchart.com / Longtermtrends

Lykeshares 1y Official

Looks like we're going through something, but who would have thought with all these tarrifs, inflation and trade wars going on

Looks like we're going through something, but who would have thought with all these tarrifs, inflation and trade wars going on

Lykeshares 1y Official

Where does this end up long term with small stocks suffering white giant caps are taking all the coin?

Where does this end up long term with small stocks suffering white giant caps are taking all the coin?

Lykeshares 1y Official

🔺 Student Loan Delinquencies Hit Record 12.9%...
The spike in red reflects financial strain returning fast. Credit card delinquencies are rising too, hinting that lower-income consumers might be nearing a breaking point. What's going on...

🔺 Student Loan Delinquencies Hit Record 12.9%...
The spike in red reflects financial strain returning fast. Credit card delinquencies are rising too, hinting that lower-income consumers might be nearing a breaking point. What's going on...

Lykeshares 1y Official

$ASN Is Anson Resources’ US$330M Financing Deal the Key to Unlocking Utah’s Lithium Potential?

Is Anson Resources’ US$330M Financing Deal the Key to Unlocking Utah’s Lithium Potential?

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