Motel/ restaurant that has potential to be making money!!

Motel/ restaurant that has potential to be making money!!

Wholesaler · Redding, CA · Member since 2015 · 218 posts · 27 votes
Not really sure where to start with this but over the past 2 years or possibly more this motel has been vacant and untouched and I see that money can be made here.. It even has pool and an indoor Hot tub. Also has a like mini restaurant that could get turned in to cafe. It's right next to the main home of the bethel community. So thousands are coming here to live and go to Bethel school. And a lot of them are needing places to stay. I know someone who's renting out her 4 bedroom house who's payments are $1,200 a month and she's charging 8 of them $300 a room. Besides the free way (which it's the beginning of it so it's not like crazy traffic), its in an amazing location. My vision is that you could turn all of the rooms into live able spaces for students or turn half of it to business offices and the other half to the livable spaces. If there was a cafe or mini restaurant that's a money maker because everyone wouldn't have to go into town to eat. The thing I just not really getting is how to price it or finding someone who'd be interested in it? Because it could be good investment if it's bought at the right price and it does need a lot of work so how would I really figure out a rehab cost and an ARV? Not really sure what I would want to do with it. Maybe wholesale it? Any thoughts? Opinions? Advice?
0Reply
20 views

2 Replies

Jump to latestLatest
  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    10y

    Paul, you're thinking and that's a good thing!

    Motel/Restaurant isn't just real estate, it's a specialized business and this doesn't sound like a mom and pop joint, sounds like a "flag" motel that went bust. 

    Anyone in your region with motel experience probably already knows about that property and if the numbers worked it would have been bought.

    Changing zoning is a great option, but it's not easy or for any newbie. It's political with the city and with the school if you intend to compete with college housing. 

    Forget about this property and just watch and see what it ends as, you'll learn. As a wholesaler you don't have a ice cube's chance on a hot sidewalk of dealing at this level with commercial buyers who really don't need you or will need you ever again.

    In other words, you're elephant hunting with a BB gun. 

    Learn real estate first, then how to deal in real estate at the residential level, after you learn financing, accounting, assess business risks, understand the community on the political side and market aspects then you can think of commercial. :)  

  • Wholesaler · Redding, CA · Member since 2015 · 218 posts · 27 votes
    10y
    Thanks for the feed back it was just really one of those things I wanted to put out there to see if what the possibilities could be! What you said makes a lot of sense! Again thank you!
Join the conversationCreate a free account to reply, vote on answers and follow this thread.