Does anyone see anything wrong with this plan about buying hotels?
Investor · Orlando, FL · Member since 2015 · 121 posts · 3 votes
This is fast forwarding abut 5 years until I can have the down payment and qualify for a loan for a hotel. I would be looking at hotels in the $4 million dollar range. Currently, there are hotels at this price that profit about $1 million per year.
I will do this once. Then, I will use the income to save for more down payments and qualify for more loans to buy hotels that are slightly larger. I will continuously work my way up until, 30 years from now, I am buying $300 million dollar hotels.
What do you think?
I know lenders that work on stated income, so I do not need two years of tax returns to show a bank.
this thread is great
spoken by the one who wants a lambo or 5 of them..... time machines are critical to success when you have business's in multiple states
Actually, I would start a side business. Exotc car rentals. Did you know you can get a brand new Aventador for $7,500/month (loan and insurance) and rent it out for $3000/day??? Companies that do this rent it out nearly every day. That is a hefty profit. But again, why am I sharing all my ideas for free.
@Account Closed, I insure several hotels, all Indian owned. their entire family works in the biz around the clock but takes a salary well below minimum wage. So if the p&l shows $30k in payroll, you know that a good portion of the profit will convert to payroll unless you have a huge family always dreaming of running a hotel.
spoken by the one who wants a lambo or 5 of them..... time machines are critical to success when you have business's in multiple states
Actually, I would start a side business. Exotc car rentals. Did you know you can get a brand new Aventador for $7,500/month (loan and insurance) and rent it out for $3000/day??? Companies that do this rent it out nearly every day. That is a hefty profit. But again, why am I sharing my business ideas for free.
That "Lambo" comment is called sarcasm. (doesn't come across well on text, I'll admit)
@Account Closed, just like @Joe Bertolino, I insure several hotels, all Indian owned. their entire family works in the biz around the clock but takes a salary well below minimum wage. So if the p&l shows $30k in payroll, you know that a good portion of the profit will convert to payroll unless you have a huge family always dreaming of running a hotel.
Well the Hilton's don't run their own hotels. They manage to do okay. $10.5 billion in revenue in 2014, $6.5 billion in revenue. I don't think Paris is scrubbing the floors, either. I'll hire people at minimum wage or as close to it as I can. I will not have a maintenance person on staff, I will just hire when necessary. I don't have every single detail, but even if it that drops to a measly $900,000/year.... then so be it. (and that is on ONE hotel).
Insure in what way? Tenant injury liability by any chance?
Btw... I do currently run an RV park, so I have experience in some of these things. It is very similar. Collect rent. Fix things. It's seriously so easy, I don't know why you all are making it out to be some complicated task to run a hotel. I know 3 people that run a motel by themselves.
*$6.5 billion in profit.
And I know I'm the "oddball" troll here and I'm about to say something that will make you all think I'm absolutely nuts....
I don't hire attorneys at all. I refuse to waste money on them.
leg.state.fl.us
Section 83 - Landlord and Tenant
Section 509 - Lodging and Food Service Establishments
.... it's just as easy as reading it.
I don't want to discourage anybody but if it were the cash cow they were presenting in the sales packet, they wouldn't be selling it on the open market.
Well they can't be at all 60, so why even be at one? Why not be sailing, working from home, or on vacation like they probably are.
I am just giving you my 02 cents for the hotel operators I know. They are typically at one property with managers (often extended relatives) running their other locations. Those relatives often live on site. My most successful motel client with 22 properties said he lived on site at one property or another for his first 12 years in business. At this point he has a great life and spends months at a time on vacation at a beautiful flat in Mumbai, but I think he paid a big price to get there. If you think 2-2.5* hotels are cash machines that are easy to operate, you will be in for a rude awakening. I wish you the best, let us know how it works out.
I don't want to discourage anybody but if it were the cash cow they were presenting in the sales packet, they wouldn't be selling it on the open market.
Well they can't be at all 60, so why even be at one? Why not be sailing, working from home, or on vacation like they probably are.
I am just giving you my 02 cents for the hotel operators I know. They are typically at one property with managers (often extended relatives) running their other locations. Those relatives often live on site. My most successful motel client with 22 properties said he lived on site at one property or another for his first 12 years in business. At this point he has a great life and spends months at a time on vacation at a beautiful flat in Mumbai, but I think he paid a big price to get there. If you think 2-2.5* hotels are cash machines that are easy to operate, you will be in for a rude awakening. I wish you the best, let us know how it works out.
I really do think it's easy to operate. I run an RV park right now and I work about 3 hours per week (granted it took more time to set up, but now that it's set up, I only work about 3 hours per week)... that is why I would get the financials before I buy.
You can go to loopnet.com right now and find 1000s of hotels that have been operating for a profit for quite some time.... it's just a matter of qualifying for the loan and coming up with the down payment. But once I have one, then I will have 2, 3, 4, 5, 6..... 1000, 2000, 6000. I probably won't even rename them.
Not if I can't think of a better name than the Inn & Out. That's stupid.
This is funny s*it! I guess all it takes to run any business is 10 min of Google search. Everyone else in the world is just plain stupid. Otherwise we should all be billionaires. Maybe @Account Closedshould go to the profession implied by his name. After all whats hard about farming? You just throw some seeds in the ground, higher a few illegal immigrants for slave wages and sell the stuff to grocery stores right? What could go wrong..lol
I don't want to discourage anybody but if it were the cash cow they were presenting in the sales packet, they wouldn't be selling it on the open market.
Well they can't be at all 60, so why even be at one? Why not be sailing, working from home, or on vacation like they probably are.
I am just giving you my 02 cents for the hotel operators I know. They are typically at one property with managers (often extended relatives) running their other locations. Those relatives often live on site. My most successful motel client with 22 properties said he lived on site at one property or another for his first 12 years in business. At this point he has a great life and spends months at a time on vacation at a beautiful flat in Mumbai, but I think he paid a big price to get there. If you think 2-2.5* hotels are cash machines that are easy to operate, you will be in for a rude awakening. I wish you the best, let us know how it works out.
I really do think it's easy to operate. I run an RV park right now and I work about 3 hours per week (granted it took more time to set up, but now that it's set up, I only work about 3 hours per week)... that is why I would get the financials before I buy.
You can go to loopnet.com right now and find 1000s of hotels that have been operating for a profit for quite some time.... it's just a matter of qualifying for the loan and coming up with the down payment. But once I have one, then I will have 2, 3, 4, 5, 6..... 1000, 2000, 6000. I probably won't even rename them.
Not if I can't think of a better name than the Inn & Out. That's stupid.
If you were sharp, you would increase your hours 20 fold to 60 per week and then you would have that hotel down payment in no time...............
What sort of annual revenue does your trailer park generate?
Assuming someone loans you enough to buy a hotel, what qualifications will you require for your general manager? Would a candidate be qualified to run a multi-million $ property who's main experience consisted of running a trailer par for 3 hours/ week?
What sort of annual revenue does your trailer park generate?
Assuming someone loans you enough to buy a hotel, what qualifications will you require for your general manager? Would a candidate be qualified to run a multi-million $ property who's main experience consisted of running a trailer par for 3 hours/ week?
It's the same ****ing principle you retard. Nothing is hard about any of it.
I don't want to discourage anybody but if it were the cash cow they were presenting in the sales packet, they wouldn't be selling it on the open market.
Well they can't be at all 60, so why even be at one? Why not be sailing, working from home, or on vacation like they probably are.
I am just giving you my 02 cents for the hotel operators I know. They are typically at one property with managers (often extended relatives) running their other locations. Those relatives often live on site. My most successful motel client with 22 properties said he lived on site at one property or another for his first 12 years in business. At this point he has a great life and spends months at a time on vacation at a beautiful flat in Mumbai, but I think he paid a big price to get there. If you think 2-2.5* hotels are cash machines that are easy to operate, you will be in for a rude awakening. I wish you the best, let us know how it works out.
I really do think it's easy to operate. I run an RV park right now and I work about 3 hours per week (granted it took more time to set up, but now that it's set up, I only work about 3 hours per week)... that is why I would get the financials before I buy.
You can go to loopnet.com right now and find 1000s of hotels that have been operating for a profit for quite some time.... it's just a matter of qualifying for the loan and coming up with the down payment. But once I have one, then I will have 2, 3, 4, 5, 6..... 1000, 2000, 6000. I probably won't even rename them.
Not if I can't think of a better name than the Inn & Out. That's stupid.
If you were sharp, you would increase your hours 20 fold to 60 per week and then you would have that hotel down payment in no time...............
Which makes no sense because it's rented out to capacity and only takes 3 hours per week of work. It wouldn't add profitability to work doing nothing, now would it?
That's awesome! You sound like a business genius. I am sure lenders will be lining up at your camp ground, throwing millions $$ at you to fund your hotel empire. Just tell them how "easy" it for you to run a large hotel and you will have all the money you'll ever need.
BTW that's a clever strategy to ask for help on a forum and then insult the people who respond.
You should definitely use that technique and insult your bankers and call them "stupid" or "retard" if they pose a difficult question. That's a great way to impress people.
Keep up the awesome work.
That's awesome! You sound like a business genius. I am sure lenders will be lining up at your camp ground, throwing millions $$ at you to fund your hotel empire. Just tell them how "easy" it for you to run a large hotel and you will have all the money you'll ever need.
BTW that's a clever strategy to ask for help on a forum and then insult the people who respond.
You should definitely use that technique and insult your bankers and call them "stupid" or "retard" if they pose a difficult question. That's a great way to impress people.
Keep up the awesome work.
The difference is that the lenders make running a hotel The fact that you all think this shows that you don't know how the lending industry works. Or at least not as well as I do.
I know this is an old thread, but the numbers don't seem to make sense. The gross margin in this deal is over 65%. Typically hotels are near the 40% range in operating profit. Of course it depends on the volume, ADR, OCC, etc. Just saying the expenses seem light.