Possible 0% down on hotel property?

[lemonpiesaregood]

Hello,

I am looking to purchase a decent hotel in the $5-7 million ballpark. Is there anyway to purchase it 0% down with secondary fiancing of some sort? If so, how and where?

Thanks!

lemonpiesaregood

[help4u]

Yes, it has happened, but it's a tough deal to close. You must prove your income and assets.

That said, give me a call and I'll get you in touch with my commercial lead, Christian.

Bruce

[lemonpiesaregood]

Which income and assets? The hotel's or my own?

[OregonLO]

I believe he meant YOUR OWN. Since you will be the person that has to pay back the loan. They want to make sure you can afford the loan. It'll be a very tough loan with no money down. Good luck.

[IntlMtg]

I WOULD LOVE TO KNOW IF YOU GOT ANYWHERE WITH THIS!

I would really love to know what lender would do a loan like that - without taking a huge chunk of the equity in the hotel...

Wouldn't it be better for the current owner to refinance it and then just have the new buyer purchase the holding company and assume the loan??

Then guess the seller could hold all the paper he wanted

[promortplanner]

Hotels is definitely a commercial loan scenario. Because it's a hotel, you'll need to find a commercial lender who accepts and has guidelines for hotels. There aren't a lot of commercial lenders who like lending on these scenarios and the lender will focus on debt servicing for the business itself. This usually means for every dollar that goes out as debt, between $1.2-$1.3 comes back as profit. Usually you need the following to be considered for a commercial loan before some kind of "letter of intent" is issued.


3-5 yrs business tax returns
3-5 yrs personal tax returns
profit & loss statements, and cash flow statements for the business
interim financial statements (personal & business)
basic application for details of property
pictures of property (if possible)I have some great commercial contacts if this is something you're still considering. I can usually tell you within a day if you have something or not.

100% is not going to be possible but I can get close depending on compensating factors. Email me at fesquivia@under1-roof.com for more information if you're interested.