Financing the Purchase of Hotel in Texas
In this project, our client was acquiring this hotel with larger 1031 equity and was seeking non-SBA conventional loan at a very competitive rate. Most lenders in the Texas and specially Dallas were having low appetite for financing hotels under the conventional program quoting mid to high 4% range and amortization of 15 or 20 years. We were able to find the best option for this client, a commercial loan with 3.85% fixed rate for five years and 25 year amortization. The complexity of this project was structuring the loan with the borrower as a disregarded LLC to accommodate the split of a 1031 partners without requiring any guarantee or financials from the splitting partner.