60 Minutes blasted after replacing harris word salad…

[kevandmay]

Hi all

I want to ask if anyone knows if it is possable to get a loan from a bank to buy a guest house, My wife (thai) and I want to get a place but dont know how easy it would be, unfortunately in in the uk for 4 or 5 months and am unable to go to the bank with her and ask, andI dont want her to do it because she just wouldn't be able to come up with the right questions and answers (bless her!!)

I know I cant get the loan so would be up to her and in her name, and i know she has not used a bank in a way that a english bank would want to see u use it to give u a loan, but i have no idea about thai banks.

we only want about 2,000,000 bart i would have 500,000 bart that she could use.

and she does not have land or a house to borrow the money against.

I no we dont look the best to lend money to but anyone thik we could or are we dreaming and am i going to have to work in uk for another year and save the cash

thanks Kev

[monekyface]

if you can work and save the cash, your chance of success in this new business goes through the roof!!!!! the hardest part about new businesses is resisting the urge to take money out in the beginning. this often kills the business. if you can go in with the place paid for, and a little set aside for your own needs- it means that the money that it generates can be reinvested in the business to give it a maximum chance for success. no matter where you get the startup capital- a bank or a private investor- you will need a solid business plan so that is the first step.

[kevandmay]

if you can work and save the cash, your chance of success in this new business goes through the roof!!!!! the hardest part about new businesses is resisting the urge to take money out in the beginning. this often kills the business. if you can go in with the place paid for, and a little set aside for your own needs- it means that the money that it generates can be reinvested in the business to give it a maximum chance for success. no matter where you get the startup capital- a bank or a private investor- you will need a solid business plan so that is the first step.

yeah I understan what u are saying, i just dont want to spend so much time in the uk doing a job i dont like, once we have a place i can come back for a few weeks to bump it up if we need to, i just want to know if it is easy or not to get a loan, but thanks for ur advice

[FritsSikkink]

if you can work and save the cash, your chance of success in this new business goes through the roof!!!!! the hardest part about new businesses is resisting the urge to take money out in the beginning. this often kills the business. if you can go in with the place paid for, and a little set aside for your own needs- it means that the money that it generates can be reinvested in the business to give it a maximum chance for success. no matter where you get the startup capital- a bank or a private investor- you will need a solid business plan so that is the first step.

yeah I understan what u are saying, i just dont want to spend so much time in the uk doing a job i dont like, once we have a place i can come back for a few weeks to bump it up if we need to, i just want to know if it is easy or not to get a loan, but thanks for ur advice

You missed the most important part of his advice.

If you don't have a decent business plan you won't get a loan because you don't have a house or land to cover the loan if the business won't work.

[kevandmay]

ok so we need to make business plan then, so if we are going to buy a guest house that is alrady running and we just take over we need to show there paperwork and the profits thay make? and how we will pay them back from it.

[FritsSikkink]

ok so we need to make business plan then, so if we are going to buy a guest house that is alrady running and we just take over we need to show there paperwork and the profits thay make? and how we will pay them back from it.

No, a business plan states:

All your costs:

keymoney / loan cost / rent / staff / electrics / water / insurance / tax / ........

Your income:

room rent / food / drinks /........

Your cash flow for the next years.

The market you are aiming at.

What makes you different from the other guesthouses nearby

What are your and your GF strengts and weaknesses

........

So you have some proof that you have really been thinking about all the different angles of running a guesthouse.

[monekyface]

have you had an accountant thoroughly examine this company's books? have you spent a couple weeks there in person to see if the numbers they are showing you are in proportion to the visitors you see coming and going? will the current owners hold an equity position in your business- effectively loaning you some of the money you will need? are you certain that they have no debt on the property, and how do you know? banks ask these questions, so before you see them you want to know ALL of the answers. if you don't it makes you look incompetent to run a business- and you don't want to look like that.

tell us about the marketing plan of the business as it is run now, and where you plan to improve it.

how much does each guest spend, on average? for how many nights? what else does the business provide- food? internet? laundry? what is the margin on these services? what is the most and least profitable product for the current owners?

OK let's see how you do on these questions first. i am almost warmed up.

[monekyface]

have you had an accountant thoroughly examine this company's books? have you spent a couple weeks there in person to see if the numbers they are showing you are in proportion to the visitors you see coming and going? will the current owners hold an equity position in your business- effectively loaning you some of the money you will need? are you certain that they have no debt on the property, and how do you know? banks ask these questions, so before you see them you want to know ALL of the answers. if you don't it makes you look incompetent to run a business- and you don't want to look like that.

tell us about the marketing plan of the business as it is run now, and where you plan to improve it.

how much does each guest spend, on average? for how many nights? what else does the business provide- food? internet? laundry? what is the margin on these services? what is the most and least profitable product for the current owners?

OK let's see how you do on these questions first. i am almost warmed up.

[kevandmay]

ok so we need to make business plan then, so if we are going to buy a guest house that is alrady running and we just take over we need to show there paperwork and the profits thay make? and how we will pay them back from it.

No, a business plan states:

All your costs:

keymoney / loan cost / rent / staff / electrics / water / insurance / tax / ........

Your income:

room rent / food / drinks /........

Your cash flow for the next years.

The market you are aiming at.

What makes you different from the other guesthouses nearby

What are your and your GF strengts and weaknesses

........

So you have some proof that you have really been thinking about all the different angles of running a guesthouse.

ok thanks, sorry if it sounds simple to u, i've just never had to deal with this kind of things before,

thanks foe the info

[cardholder]

if you can work and save the cash, your chance of success in this new business goes through the roof!!!!! the hardest part about new businesses is resisting the urge to take money out in the beginning. this often kills the business. if you can go in with the place paid for, and a little set aside for your own needs- it means that the money that it generates can be reinvested in the business to give it a maximum chance for success. no matter where you get the startup capital- a bank or a private investor- you will need a solid business plan so that is the first step.

yeah I understan what u are saying, i just dont want to spend so much time in the uk doing a job i dont like, once we have a place i can come back for a few weeks to bump it up if we need to, i just want to know if it is easy or not to get a loan, but thanks for ur advice

You missed the most important part of his advice.

If you don't have a decent business plan you won't get a loan because you don't have a house or land to cover the loan if the business won't work.

What is he buying with the money - fresh air ?

[FritsSikkink]

if you can work and save the cash, your chance of success in this new business goes through the roof!!!!! the hardest part about new businesses is resisting the urge to take money out in the beginning. this often kills the business. if you can go in with the place paid for, and a little set aside for your own needs- it means that the money that it generates can be reinvested in the business to give it a maximum chance for success. no matter where you get the startup capital- a bank or a private investor- you will need a solid business plan so that is the first step.

yeah I understan what u are saying, i just dont want to spend so much time in the uk doing a job i dont like, once we have a place i can come back for a few weeks to bump it up if we need to, i just want to know if it is easy or not to get a loan, but thanks for ur advice

You missed the most important part of his advice.

If you don't have a decent business plan you won't get a loan because you don't have a house or land to cover the loan if the business won't work.

What is he buying with the money - fresh air ?

Almost.

2.5 mil gives you just a lease; not any property

Edited May 27, 2011 by FritsSikkink

[kevandmay]

Im sure fresh air is free....dont need a loan for that!!

want to get a guest house.

and to reply to monkyface, we have not found anywhere yet, only just started looking and trying to think of ways to do it, the advice u have given me is a grate help to know where to start and what we need to be thinking about. I have to stay working in the uk for the summer so got all these ideas and dont want to get to exited if we cant get the money from a bank and i have to work here instead. to save this much money would only take a year here, but thats the last thing i want to do!!

[cardholder]

OK, I'll play.

First of all, everyone is looking at this from a Westerm business plan perspective. Does anybody actually KNOW how Thai banks assess loan applications ? Do they have commercial mortgages ? What is their lending criteria ?

It would be handy if someone who has experience of borrowing money, for business purposes, from a Thai bank came on and reported on their experiences.

Irrespective of borrowing money, or using your own money, you should have a (business) plan. If you were setting off from Carlisle to Basildon it would be useful to have a map. A business plan is just that - a map where you are, where you are going and how you are going to get there.

So, where is the guesthouse, what is it's current clientele, who owns it at the moment and why are they selling. What is the current financial performance, is it making a profit if so where from - rooms, bar, meals, additional services, 'extras'. What are the operating costs and what level of staffing do you need - numbers/ability etc.

What do YOU want to achieve ?

Is this something the missus wants to do or are you pushing her into doing it to keep her occupied. What experience does she have, what experience do you have ?

How much can you afford to lose, what is your get out point.

What do you want to be doing in 4 years time - what does your life look like ?

What other alternatives are there for you ?

These are just a few of the questions that I might consider, go away and write down as many questions as you can about the business - including all the things you don't understand.

At the moment, what you have offered wouldn't fill the back of a fag packet. Number one, ask yourself WHY you want to do this.

[cardholder]

What is he buying with the money - fresh air ?

Almost.

2.5 mil gives you just a lease; not any property

You are joking...... aren't you ?

This is not central Bangkok. The OP will be looking at Pattaya or perhaps an Isaan large town or city. I am 100% confident he is looking at ownership.

He has just started looking so I will be interested to see where (and on what) he is basing his figures. You don't say "I have 500k and want to borrow 2m from the bank unless you have some ideat hat your funding requirement is circa 3m.

Do you....?

[kevandmay]

OK, I'll play.

First of all, everyone is looking at this from a Westerm business plan perspective. Does anybody actually KNOW how Thai banks assess loan applications ? Do they have commercial mortgages ? What is their lending criteria ?

It would be handy if someone who has experience of borrowing money, for business purposes, from a Thai bank came on and reported on their experiences.

Irrespective of borrowing money, or using your own money, you should have a (business) plan. If you were setting off from Carlisle to Basildon it would be useful to have a map. A business plan is just that - a map where you are, where you are going and how you are going to get there.

So, where is the guesthouse, what is it's current clientele, who owns it at the moment and why are they selling. What is the current financial performance, is it making a profit if so where from - rooms, bar, meals, additional services, 'extras'. What are the operating costs and what level of staffing do you need - numbers/ability etc.

What do YOU want to achieve ?

Is this something the missus wants to do or are you pushing her into doing it to keep her occupied. What experience does she have, what experience do you have ?

How much can you afford to lose, what is your get out point.

What do you want to be doing in 4 years time - what does your life look like ?

What other alternatives are there for you ?

These are just a few of the questions that I might consider, go away and write down as many questions as you can about the business - including all the things you don't understand.

At the moment, what you have offered wouldn't fill the back of a fag packet. Number one, ask yourself WHY you want to do this.

Ok so number 1 why I want to do this is because I just want somewhere nice for Me my wife and our son to live and work, I want to be around my son and wife not working on the farm or driving a lorry till 11pm every day and trying so hard just to live and eat in the uk. I spend half the year in thailand and feel it to be more of a home and a much nicer place for my son to live. Also Im a people person and would love to have a guest house and making peoples holidays something to remember.

We have not yet found anywhere or made our mind up even where, we have only just started looking to see what is out there, where we stay in thailand (kho phayam) is a lovey place but it is a bit small and has not got a very good school, and its only got 4 months high season as it rains for 8 months, so we are looking all over thailand at a posability.

How much can I afford to loose?, as long as it is not my wife or son i dont care, money does not mean a lot to me, if it did i wouldn't be looking for a small guest house on the beach in thailand, i would stay in uk and go in on my dads buisness and have a big house in the country with a v8 Range Rover on the drive, but its not me, I dont even want to ask him for the money to help me, thats my dad life, I loose everything every year in 6 months the come home for 6 months to do it over again, i'm just sick of the going home bit.

The missus is always happy and would love to do this.

what other alternatives are there? as I said work 6 months chill 6 months, come to the uk and work all the time (dont like that one) grow 1000's of christmass trees and sell the in december and chill for the rest of the year in thailand ( have to wait 4 years to start selling) or become a ladyboy and work in khow san rd!!!

I'm bored of sittin on a beach for 6 months doing nothing if we had something to do in thailand I would never get bored or come home.

as I said before thanks for all the advice its giving me a start of what I need to do and think about

thanks kev

[cardholder]

as I said before thanks for all the advice its giving me a start of what I need to do and think about

thanks kev

Good luck Kev.

You have a dream at the moment rather than a plan.

I understand where you coming from - I was 6m/6m and now do 9m/3m, next year 10m/2m and 11m/1m in 2013.

I am 2 weeks away from returning to Thailand and today I had to put the heating on in my office! You can stick your Xmas trees where the sun don't shine !

I also needed something to do to occupy the time as I was not ready to do nothing. I suspect you are a good deal younger and have already become bored with lazing around. You also have a son and (unless he is grown up) this will be a factor in what business you can run.

I chose to spend 750k setting up a coffee shop/restaurant/bar. This was my money and was prepared to lose that if it didn't work out (I had mentally allocated another 150k to cover losses. Once the 900k had gone I would have called it a day and tried to sell the equipment, fittings and furniture.

I paid the rent because I would have had to pay rent on a house anyway (the shop has 3 bed accommodation). Including 2k per week for the missus I worked at that we would need to take 1,500 Baht a day to break-even. This is the first fundamental step in any business.

I think we have made a profit every month and the missus averages a monthly bonus of 10,000 Baht. I will never get rich out it but the missus is earning a decent wage for her efforts and perhaps I could sell the 'business' for circa 1m Baht that would give me my money back.

This was starting from scratch with a bare double shophouse in the boonies. No payments for 'goodwill, fittings, key money or crao like that.

Take your time in finding something. The worst thing you can do is rush into something just because you want to be 'there', rather than here.

Good luck and I am sure you will know when you find the right thing.

[CharlieH]

ok so we need to make business plan then, so if we are going to buy a guest house that is alrady running and we just take over we need to show there paperwork and the profits thay make? and how we will pay them back from it.

Have you considered the Work Permit issue and licence ? if you get the money and assuming you will be living in the premesis you immediately need a work permit, and dont think "its got nothing to do with me"" will work cos they will lock you up !

best of luck.:jap:

[KRS1]

Im sure fresh air is free....dont need a loan for that!!

want to get a guest house.

and to reply to monkyface, we have not found anywhere yet, only just started looking and trying to think of ways to do it, the advice u have given me is a grate help to know where to start and what we need to be thinking about. I have to stay working in the uk for the summer so got all these ideas and dont want to get to exited if we cant get the money from a bank and i have to work here instead. to save this much money would only take a year here, but thats the last thing i want to do!!

Sometimes you have to do what you dont want to do, to do what you want to do.

[FritsSikkink]

Good luck Kev.

If you find anything you like, give me a PM maybe i can help a bit (money or advise)

[gregb]

First of all, everyone is looking at this from a Westerm business plan perspective. Does anybody actually KNOW how Thai banks assess loan applications ? Do they have commercial mortgages ? What is their lending criteria ?

It would be handy if someone who has experience of borrowing money, for business purposes, from a Thai bank came on and reported on their experiences.

Everyone I know who has ever received a commercial loan from a Thai bank has *ALWAYS* had to put up property as collateral. A business plan alone isn't going to cut it for a Thai lending institution. Not for someone without a recognizable last name within banking circles. Thai banks don't share your risk unless you give them real property they can seize if you don't pay. You can possibly get a commercial loan on a guesthouse *IF* it includes freehold real estate as part of the purchase. If it is a loan for a leased property??? Forget it. Never gonna happen.

[kevandmay]

First of all, everyone is looking at this from a Westerm business plan perspective. Does anybody actually KNOW how Thai banks assess loan applications ? Do they have commercial mortgages ? What is their lending criteria ?

It would be handy if someone who has experience of borrowing money, for business purposes, from a Thai bank came on and reported on their experiences.

Everyone I know who has ever received a commercial loan from a Thai bank has *ALWAYS* had to put up property as collateral. A business plan alone isn't going to cut it for a Thai lending institution. Not for someone without a recognizable last name within banking circles. Thai banks don't share your risk unless you give them real property they can seize if you don't pay. You can possibly get a commercial loan on a guesthouse *IF* it includes freehold real estate as part of the purchase. If it is a loan for a leased property??? Forget it. Never gonna happen.

Thanks, yeah it would not just be for a lease, the places we have been looking at the lease for 1 month i can get in 1 days pay in uk lol

Edited May 28, 2011 by kevandmay

[kevandmay]

What is he buying with the money - fresh air ?

Almost.

2.5 mil gives you just a lease; not any property

You are joking...... aren't you ?

This is not central Bangkok. The OP will be looking at Pattaya or perhaps an Isaan large town or city. I am 100% confident he is looking at ownership.

He has just started looking so I will be interested to see where (and on what) he is basing his figures. You don't say "I have 500k and want to borrow 2m from the bank unless you have some ideat hat your funding requirement is circa 3m.

Do you....?

yeah defo not patts or BKK

something like this would be fine for me http://classifieds.thaivisa.com/business/business-for-sale/beachfront-resort-with-6-bungalows-restaurant-bar-in-koh-lanta-103097.html

[KASABIAN]

What is he buying with the money - fresh air ?

Almost.

2.5 mil gives you just a lease; not any property

You are joking...... aren't you ?

This is not central Bangkok. The OP will be looking at Pattaya or perhaps an Isaan large town or city. I am 100% confident he is looking at ownership.

He has just started looking so I will be interested to see where (and on what) he is basing his figures. You don't say "I have 500k and want to borrow 2m from the bank unless you have some ideat hat your funding requirement is circa 3m.

Do you....?

yeah defo not patts or BKK

something like this would be fine for me http://classifieds.t...nta-103097.html

You'd been giving them the equivalent of 50 grand sterling just for the privilege of renting their business. The person you hand the cash over to could then (if in Europe) go and buy one of these with your money and still be the owner of the business.

Never buy a business make one. And never borrow money, work hard and save up then build your own business.

[kevandmay]

What is he buying with the money - fresh air ?

Almost.

2.5 mil gives you just a lease; not any property

You are joking...... aren't you ?

This is not central Bangkok. The OP will be looking at Pattaya or perhaps an Isaan large town or city. I am 100% confident he is looking at ownership.

He has just started looking so I will be interested to see where (and on what) he is basing his figures. You don't say "I have 500k and want to borrow 2m from the bank unless you have some ideat hat your funding requirement is circa 3m.

Do you....?

yeah defo not patts or BKK

something like this would be fine for me http://classifieds.t...nta-103097.html

You'd been giving them the equivalent of 50 grand sterling just for the privilege of renting their business. The person you hand the cash over to could then (if in Europe) go and buy one of these with your money and still be the owner of the business.

Never buy a business make one. And never borrow money, work hard and save up then build your own business.

well 50k english would get u a 2007 one!!

thanks good advice