I need to know any information on buying a small motel. Like financing. down payment. Where to start?

In Buying Property - Asked by Cindy P. - Nov 25, 2008
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Answer(s)

Phillip M.
Appraiser
Lakewood, CO

You may want to consider an SBA 504B loan if this will be owner operated. Contact a local commercial bank that does SBA lending or the local Community Development Corporation.
Down payment with the SBA 504B will be 15% to 20% depending upon your background and financials. Non SBA loan from a commercial bank will require 25% to 35% down.
Good luck, let me know if I can help.
Phil A. McDonald
Marcus and Millichap
National Hospitality Group
1225 17th Street Suite 1800
Denver, CO 80202
720-217-6600 Cell
888-680-1946 Fax
www.ColoradoHotelBroker.com

Nov 25, 2008
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Jeremy H.
Broker/Agent
Jacksonville, FL

I would shop the project with local banks in the area of the motel. They would have the best appetite for that kind of acquisition. Also, they probably know whether or not the motel is a good buy, as they would be very familiar with the area.
I would expect 2o-25% down in this market.
Before you do that, however. You need to get with a commercial broker that deals with this kind of transaction. They will know how to package the project to a bank (financials, rehab, etc.). Presentation is very important in selling a project like this to a lender.

Nov 26, 2008
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