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