All Forum Posts by: Mike Dawson

Hi all. I am in need of insurance for a small(20 unit) motel in Kansas. The current company just quoted me more than double the existing rate. They claim that the replacement cost has gone up 400k since the policy was written, and that they had just raised rates this past January. I had another quote thousands higher than that. It's a substantial blow to the NOI.

Please help!

 I'll certainly be checking out those options.  I'm not sure if the tvs are smart, but they are relatively new, so hopefully.

Thanks for the ideas!

Hi all.  I'm buying a 20 unit motel that will be converted to extended stay and expect guests to stay month to month, and beyond.  I'm trying to keep costs low while providing value and so I'm doing some shopping around.  

Whenever I've stayed at hotels/motels, I find the tv options severely lacking and not worth watching.  At home, I'm well served by only having a netflix and hulu account and was curious if there are comparable services that cost the same or less than whatever tv packages I'm use to having in hotel stays.

I'd welcome any suggestions on how any of you accomplish this.  Thanks!

 Owner couldn't give me an answer exactly. 

 I haven't but I would consider it.  She used a local bank.  Didn't know if they would go for that.

Hi. I'm looking at a 26 unit motel in a tertiary market. Current financials(according to the P&L) show a little over 35k NOI. Converting to an extended stay, that NOI would be closer to 76k, not including debt service. That's also not including any other income streams created during the renovation, like vending machines and coin operated laundry. The property looks to be in good shape, so not much capex expected for repairs. I was hoping the owner could finance, but they have a loan in place, so I need a loan to purchase. PP is <300k, and all of the banks I've been looking at aren't interested in something that low, or are not familiar with the extended stay/temp housing model.

Could use recommendations on lenders.  Thanks, all.

For something like that, I'd try to structure a seller finance deal.  

In a situation like this, is it reasonable to expect normal rents on the LTR dwelling?  I'm looking at a property with a 3/1, and detached 1/1(could become 2/1 possibly).  If I was a long term renter, I wouldn't personally like having the building 20' from my house getting turned over every month or so.   In order for the setup to be more attractive to me, I'd look for rents to be a little lower compared to other properties with just 1 family.  But, maybe I'm just more private than others.

 It is still being bid on... I was hoping it would fly under the radar!  

I have a friend in the title business that has offered to train me how to do title searches, and with his help, I did one on this particular property.  I have a lot more to learn on that.  Winning asap definitely seems like the way to go.  I could have been working on this place already.  Instead, I'm going every 10-15 days to shell out a couple hundred bucks here and there.  Once I get more confident in this process, I may come out of the gate with a bid close to my mao.

My main goal at the moment is to start building great business credit for use when I may need it. Originally, I bought into all anonymity and protections offered by such states as Wyoming. However, I read that anonymity is next to impossible, especially if I will be the one signing, dealing with tenants, networking, etc. Basically, nullifying any attempt at remaining anonymous. Anonymity aside, it appears as though those extra protections might not be realized in other states. And as you mentioned, I have no assets currently. However, I do plan on owning business assets (vehicle, buildings, equipment, etc) but that will be down the road a bit. That is why I asked about later converting an operating LLC that I set up now to handle all my business until such time the additional money and time costs justify it. I'm not sure if it's as easy as reconfiguring the LLC since I wouldn't want to lose any credit associated with it.