What happens to comm R.E like independent motels in recession time frame ~ Do they survive

When economy is down home prices falling and some getting foreclosed does this affect motel business, I am looking to buy one property in Upstate NY area OR is it good to hold on to savings and wait when economy recovers and gets better please advise Thank you
In Buying Property - Asked by D.C P. - Oct 6, 2008
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Answer(s)

Michael R.
Developer
San Jose, CA

I have to believe that a "motel" is probably pretty recession-proof, provided its in a good location (freeway visibility) and has competitive rates. If anything, if you can position your motel so that it competes with more expensive alternatives, then you should see an increase in occupancy.

Oct 6, 2008
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Andrew G.
Lender/Mortgage Broker
Sarasota, FL

Location, Location, Location, & price is more important then ever. When I worked for a mortgage servicer, just about all of our motels/hotels stopped paying during the last recession. People don't travel as much and businesses don't want to have meetings at hotels. High gas prices also hurt. I'd be looking to buy a hotel during the recession and then sell it on the upswing. Also, if you don't have a flag you are in real trouble and most places won't lend to you for that reason alone.

Oct 7, 2008
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Karen M.
Owner/Investor
Fairfax, VA

I had a great former boss who invested lots of money into these types of motels in the 1970s, and lost a bundle when the gas crunch kept people off the roads. Andrew G is exactly right.

Oct 7, 2008
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Gregory G.
Broker/Agent
San Francisco, CA

You have to analyze where the business is coming from and how much it is effected by the economy.
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Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
greg@nnnbrokersusa.com
http://www.gregorygarver.com

Jun 12, 2011
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