How to Buy a Motel Business
Analyzing a motel’s financial records can help a buyer decide the right amount to offer the seller. The buyer will also need to determine the value of the property before making an offer. Getting a loan pre-approval loan from a bank can also help the buyer decide how much to pay for the motel.
- Consider staying at the motel for a few days to help you decide whether or not to make a purchase offer. Reserve a room and use the motel’s amenities. Pay attention to how loud the area is and how well you sleep during your stay.
- Determine the value of a motel you want to buy to help you negotiate a purchase price. Inspect the property to look for areas that may possibly affect the value of the motel. Roofing repairs, parking lot deterioration or the crime rate in the area are some of the things that can impact your offer amount.
- Obtain financing once you arrive at a valuation for the motel. Contact a commercial bank and complete the paperwork to get a loan pre-approval. Once you know how much the bank will finance you can use the information to help you make an offer on the motel.
- Call the seller and arrange a time to meet to discuss the purchase. Ask the seller to show you around the motel and take notes as you walk the property. Request a copy of the motel’s financials to help you determine how much to offer the seller.
- Make the seller an offer and negotiate the price. Once you arrive at a final amount you can contact your banker to set up the financing. If you are requesting that the seller make some repairs before finalizing the purchase, make sure that you inspect the motel to see if everything on the repair list was taken care of.