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Author Topic: New Garden Hotel for Sale  (Read 1361 times)

Viva La Vega

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Re: New Garden Hotel for Sale
« Reply #15 on: November 18, 2018, 12:11:57 PM »
I would be all over leasing a piece of land with a value of $6m with a 6%-8% return for 20 odd years for someone who wanted to build a factory or a car dealership and I could give a fuck about how there business was going or the condition of the building. And all i did was pick up my WU and sit under the coconut tree and watch my investment in the land grow.

But a hotel is a business, supported by a depreciating asset, on top of an appreciating asset. The place needs constant investment in maintenance, marketing, and is open at the whim of the mongers and the local officials. The profitability could change in a heartbeat.

So the value? Maybe two things... Business and property. I would buy a business (not a chance in DR) at somewhere between 3 and 5 times the annual net. If the guy showed his books and he owns the land and building and  was netting $300k the business might be worth $1.5m tops.

And if i wanted a 6% return on the investment in the property call it $2m for the land and building that $120k comes of the $300k he was netting... Business is worth $900.

So if he could show you $300k a year (audited) it might be (if it were anywhere else) worth $2.9m.

Thats Elking and Hip Hop money!




FuenteFuente

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Re: New Garden Hotel for Sale
« Reply #16 on: November 20, 2018, 11:58:47 AM »
New Garden has been for sale forever and so has Blackbeards. Neither will change hands unless they are forced into a fire sale just to dump the thing. There is no way a buyer of New Garden could start turning a profit on a six-million-dollar acquisition. The only hope is that in three years some other sap would come along and pay $9 million. Same with Blackbeards.
Women need a reason to have sex. Men just need a place. Sosua will do just fine.

Talis

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Re: New Garden Hotel for Sale
« Reply #17 on: November 20, 2018, 01:54:52 PM »
Blackbeards is asking 1.3 million.. Seems a bit more reasonable though any business of that nature is always a day away from some shifting political wind destroying.

stinqu

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Re: New Garden Hotel for Sale
« Reply #18 on: November 22, 2018, 06:52:04 PM »
As the old saying goes "How do you make a "MILLION DOLLARS IN THE D.R., START WITH TWO" LOL.

wavey711

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Re: New Garden Hotel for Sale
« Reply #19 on: November 23, 2018, 06:51:32 AM »
Some of you might know about biz and some might not,,,

when you buy an investment property,,, you don’t look at how many years it will take you to get your money back “it should not be the main and first factor”

Because if it takes 10 years to break even “it is not really breaking even” you will actually be returning the money that you invested back plus having the property as well,,, y’all forgot about you will own the property after getting the money back 🤦🏻‍♂️lmfao so that’s a PROFIT not breaking even

you look at the return rate,,,

Example, 1 million dollars rental property would consider a good deal if the annuel return is between 8%-10%

For a retail property for 1 million dollars would be 10%-12% annuel return to be considered a good deal

Hotels are considered rental property,,, you can’t say it is a big price or low unless you see some paper work with annuel numbers about profit, expenses & taxes etc....

In other words,,, his $6 million porproty better generate at least $400k annually as a net profit to be considered,,,

PS: I am aware different cities have different numbers and what have you,,,, but it should not differ more than 1% more or less

Dahm,,,, this sounds boring lol,,,, but might help any of you looking into buying any investment property anywhere to use this model as an example 🤷🏻‍♂️

Totally right bro. But you know everything you said is going to go right over these ninjas head.

 


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