Comments on: Hotel Loans

By: ncbeachman28403

ncbeachman28403 — Tue, 29 Jun 2010 15:34:12 +0000

First arrange to see the manager of a bank, and talk to him/her about your intention, and how you would like to change/improvise on the target hotel.

Try to convince him/her of your idea, and if this seem workable the bank will advise you on the follow up.

However be ready wilth a business plan which should include factors such as marketing and services (since this is going to be a hotel) and also how you would like the funds to be used and in what way you can re-pay the bank.

By: dbx2

dbx2 — Tue, 29 Jun 2010 05:07:12 +0000

Again, what's with people's spelling? (above), anyway, you're talking about the toughest kind of loan to get right now. 2 years ago, no problem. If you have good credit, (670 or above) and if you can put at least 20% down, you might find some one to do this type of loan. I don't know where the hotel is, but it if is in a small town, start with the local small town banks. Don't even bother talking to someone unless he or she is at least a Vice President of the bank. With small town banks, you may even be dealing with the President and owner of the bank, so you won't get any bullshit promises from them. If they are willing to do the loan, small town banks often look at the value of the deal rather than just how you look on paper. It helps if they know the property, which they will if it is close to them. They have a vested interest in improving the area as well. Go in with a detailed estimate of the repairs and a written summary of the work you plan to perform,(written sort of like a resume of the property) as well as your intentions for the property. Even if it's not in a small town, go to a few local small banks rather than some one like Chase or Wells Fargo. Also, have you tried approaching the owners about short term owner financing instead? Good luck

By: puffer fish

puffer fish — Tue, 29 Jun 2010 01:04:58 +0000

For $100 million, you need to have a financial expert who can help you out find where to pool together various sources of funds to raise $100 million. That's a lot to come from one source.

Try venture capital firms

Then look for angel investors – start with Angel Capital Association http://www.angelcapitalassociation.org

Then work your way to the banks, assuming of course you've got collateral and equity investments

By: pri

pri — Mon, 28 Jun 2010 13:06:39 +0000

Not really… that's really why credit cards exist.

By: supascorch

supascorch — Sun, 27 Jun 2010 21:35:35 +0000

1. Get property appraised first. You may be off on your calculations, but get it appraised first to see if your deal is viable.

2. Next if the valuation is high enough, contact a bank to get a reconstruction loan. This will be a loan for aquisition wrapped with a construction loan. The construction loan part will be variable and paid out of a drawing account payable at stages of the reconstruction. The stages and estimated costs will be estimated at the beginning of the loan process defining what defines completion of a stage and how much money will be released.

3. Upon completion the loan will convert to a permanent with the entire amount amortized over the target period ie 25yr.

You will want to get a good flag and mgmt company, but more importantly you are going to need to carry some working capital as you should not expect to break even the 1st year especially considering the size of loans.

If you are interested you can contact me directly as I've consulted on similar deals. I can arrange Gen Contractors as well as permits and financing as well as help you with some techniques to minimize your exposure in the deal and maximize your ROI.

Good luck either way. Remember 90% preparation in these types of complex deals. Your financial structure will dictate your success.

By: Max H

Max H — Sun, 27 Jun 2010 20:25:01 +0000

By: Megan H

Megan H — Sat, 26 Jun 2010 18:04:41 +0000

You would not obtain money in the US for this, no one will lend for property outside their legal jurisdiction.

You will have to use a bank in Costa Rica.

Expect to pay at least 40% upfront in cash. (same as in the US)

By: brian K

brian K — Sat, 26 Jun 2010 09:28:14 +0000

By: Adrienne

Adrienne — Sat, 26 Jun 2010 08:33:32 +0000