Subnostr

Should I buy this motel?

Canada's economy is struggling, and as a result, REITs aren’t actively buying up old real estate anymore.

Previously, their strategy was simple: buy run-down properties, renovate them, sell at a massively inflated price, and then another REIT would pick it up to rent it out—often to immigrant entrepreneurs who would eventually fail due to high rent.

The real estate companies and owners of these run down buildings are continuously relisting them to make it look like they just came on the market.

This example below has been on the market for years and recently relisted 15 days ago, the price has dropped dramatically—from around $200K CAD down to just $14K CAD!

Is it worth buying? Should I buy it?

What should I call my hotel? The Mar Hotel? haha

I’d accept Bitcoin!

https://media.letsfo.com/images/2025/09/12/medstead-hotel-saskatchewan.webp

https://www.realtor.ca/real-estate/28782539/102-1st-avenue-medstead

#hotel

#canada

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Discussion

S!ayer 4mo ago

Look at how the Patel's did it? Monish Parabai's book will help you a lot of you're seriously considering that.

It's not easy work either, hospitality.

But for the price?? Wow.

You'd need to really sit down and do the math on it, and things like location, demand, renovations, staffing etc.

Would be exciting though

mar 4mo ago

The Patel's didn't own the building. They rented.

Yes, you're right. Hospitality is difficult because everyone is miserable & crazy these days.

My gut feeling told me it's a money pit even for 14K. Chatgpt agrees. We both did the math.

A lot of these buildings should of been demolished decades ago but since the housing market is used as an "investment" now we have all kinds of overpriced old run down buildings everywhere.

S!ayer 4mo ago

The Patel's run the largest motel chain in America, their story is well documented and can give you a guideline, although times have changed.

Maybe renting better than owning?

What's the land worth? Maybe that's more investable than what's on it? Tear it down and put up a McDonald's

mar 4mo ago

I thought you were taking about the Patel's in my previous note. The ones who just came to Canada.

The province which that motel is in, is a dying province. A lot of Canadians also didn't have that many kids so there isn't that many young people and many have moved away from that province.

It's too expensive to tear down and rebuild a new hotel because of labor cost and material costs and because the building is so old the heating coats are high especially in such a cold province.

So yes. it's definitely a money pit. The situation on Canada is that smart money doesn't invest in Canada.

the Patel's

https://m.youtube.com/watch?v=LNDHU5AHiUU