Financing the Purchase of a Hotel for First Time Buyers in Indiana
Microtel Elkhart, IN
The buyers of this Microtel of Elkhart who were from out of state and did not have direct experience in owning and managing hotels contacted us to arrange financing for their acquisition of this hotel under the conventional program with 80% to 85% loan to cost. Unfortunately, the conventional loans are tougher to obtain and require buyers to have ties to the market by either being a resident or having other hotels in the area. The performance of the other hotels owned by the buyer in the area will be used as an indication of the management and operational success. Once our client was convinced that this first purchase was tough to be structured conventionally specially at high LTV, we quickly used the alternative option which was an SBA 7a loan to close on time.
What Our Client Thinks Of Us
On behalf of the Best Hotels LLC, I would like to thank Ramin for tremendous support and coaching during this financing process. For us, this was our first project and not knowing much about the hotel financing process, we contacted Ramin. On first day of the email correspondence, he sent us a table with loan structure stating loan amount, fees, PIP, down payments etc. This was very impressive to me and my team as to clarity of information was given instantly and confusion was removed for numbers. During the loan process, we hit a road bump with our 1st selected bank after 6 weeks. Ramin quickly found another bank and close the loan within 45 days. It was a fast recover and we were able to meet deadline. Communication was excellent through the process and kept us updated on each step. Once again, our sincere thanks to Ramin for an excellent financing partner.