Hotel Loans, All is not Lost
- on 05.10.10
- Filed Under credit card
- 9 Comments
Hotel loans and hotel financing has become much more limited in the last six months, but there still are options out there. Here are a few things to consider on increasing your chances of getting your hotel loan closed.
First of all, probably 60% maybe 80% of the lenders and banks that where offering hotel financing just a year ago, are now either out of business or are no longer accepting new applications. The reasons for this are many, from the banks having their own internal issues to not being able to sell the debt off onto the commercial secondary markets, etc. Bottom line, you’re reduced to only the banks/lenders that are still standing. It is critical to deal with these banks, and to get a better understanding of what they expect from you to get your hotel loan funded.
Hotel Loans Experience
Experience has always been really important with hotel loans, now it is becoming much more important. Two years of practical, onsite experience is the minimum. Lenders are looking at this more and more, and two years is many times not enough. As a potential solution for those that don’t meet this, is you can sometimes hire a third party hotel management company on a one to two year contract. Not all banks will accept this, a few will.
Another potential solution is to bring on a partner that meets this requirement. Obviously this is a complicated solution but can be a real home run from a financing perspective. Perhaps the potential partner has a higher net worth, liquidity, etc as well, so he’ll help with the entire loan request, not just with experience. The interesting thing is that with the real estate component of hotels, after a few years you can often refinance the debt a pay the partner off with the proceeds – so it can be a relatively clean buyout.
Hotel Financing – Stability
It is much easier to get a stabilized hotel financed than a renovation type deal. Perhaps the up side won’t be as attractive, but again from a financing perspective you will have a much better chance of getting the loan closed. Ideally what lenders want to see is two years of stable occupancy and or increasing trends and net income that can currently debt service at 1.3 to 1.35 (or more).
Interestingly, we have seen some turn around type hotels deals with purchase price low enough to meet the 1.35 DCR mentioned above. So you might be able to get that reduced price with still enough existing net income to service all of the expenses, proposed debt and satisfy the funding bank.
With everything you just said, I can't see how your mom would actually have to support your father if they got a divorce. I would think the gambling problem would mean he couldn't have the children and also they would want him getting money to gamble more. However, I am not an attorney.
Have you ever seen the show Intervention? You might want to consider that. Your father needs a lot of help, but he is not going to go easily.
If nothing, you should talk to a counselor at your school. You have to talk to someone, as keeping this in will not help you in anyway. I feel for you and your siblings.
Good luck!
OK, ?.
You are better off being set free, I'm surprised YOU put up with as much as you did from her. Bride or not.. no one should treat a friend like that. All I can say… is I feel sorry for her husband to be… yikes!
I am pretty leary of the RC, United Way, Greenpeace, Church Missonaries etc….all have one thing in common…they say they are doing good..yes, on the backs of the volunteers and someone else's money!! ( Probably you- the taxpayer)…I have a few suggestions on where you can find help…a local, small church, government agencies like HUD, or even a local bank could offer some tips…leave the false prophets out of it!
Bottom line, stop messing up and allow her to gradually earn her trust back in you.
Just when she thinks you are being honest, you let her down. Why would u expect her to trust you?
Sounds like its gonna take awhile. Not just a few months, but maybe years.
These arent small things, these are big issues for her, so start today and reassure her everyday that you are done letting her down.
Dont expect her to just get over all of it and move on. She tried that once, only to be let down again. Once trust is breeched, it take a long while to get it back, and it has to be earned.
Good luck to you and her. I truly hope youre serious this time.
Get some help if you need it. It would give her incentive to believe in you.
Best wishes.
Be really careful there are lots of predatory lenders out there with clauses built into their loans that are downright sneaky. I would approach the landlord and ask if an extension would be possible explaining the circumstances. In addition do you have time to take on a second job temporarily? If you must take out a short term loan the best route would be through a local bank. They will offer the best rates usually especially if you want an unsecured loan. Another option might be asking the company that holds the note on your car if there is any equity in the car. If so they might be willing to refinance your car loan and give you a little extra cash. Stay away from title loan and payday lenders. You'll find a way. Hang in there. My best advice would be to pray about it. God will find a way.