Loans Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

No Hotel Loan for You!


Meeting the requirements to get a decent hotel loan from your local lender can be difficult but not impossible. Let's face it, what lender wants to put money up for a roach infested dump in downtown Detroit? You'd have to get a separate loan just for the insurance.

Most lenders will only finance hotel properties that are "flagged". In other words, most banks, public and private lenders will only provide hotel loans to individuals who are starting a franchise under certain major hotel/motel chains such as Best Western, Hilton, Super 8 and other well-established hospitality brands; Sid's Sleep Shack need not apply. In addition to being a virtual nation-wide brand, the particular establishment in question needs to show a profitable operating and occupancy history.

Even if you want to build a new hotel/motel from the ground up, forget about starting your own brand; most lenders will only provide hotel loans to build the same "flagged" hospitality companies as they will for the purchase of an existing property. Besides having a well-known flag, getting a hotel loan for a new property is possible provided it is well located and can be provided with strong management.

Lenders reserve the best hotel loan rates and terms for properties that are well cared for, attractive, and have pleasing amenities like pools, wireless internet, cable, and complimentary continental breakfast buffets.

Hotel loan terms will, of coarse, vary from lender to lender, but most banks and other investment capital institutions provide 5, 10, or 20 year loan terms for amounts up to $2,000,000. These loans can carry an interest rate ranging from 7% to 8% and typically carry a recourse clause, although some lenders are more flexible than others in this regard.

Just a brief note on recourse loans; this type of loan hold your personal assets liable in the event you default on the hotel loan-seriously bad news if your franchise doesn't turn out to be as successful as you originally thought. This is the lender's way of protecting its assets by separating those who are serious about the hotel business from those that just want to try something new. If you're not familiar with the details of this loan, you should either educate yourself thoroughly first or look around for a non-recourse loan. The terms of a non-recourse loan simply hold the hotel, or whatever else you spent the loan funds on, liable in the event you default.

If you're planning on borrowing over $2,000,000 to build or buy a larger hotel/motel, the interest rates may be a little better, although not much. Interest rate lows can be more favorable by up to a half percentage point, while to current ceiling is still hovering around 8%. With a larger hotel loan comes a longer loan term, usually 20 to 25 years. One boon of a larger loan is that most institutions offer limited recourse in the event of a default.

Meeting hotel loan requirements can be difficult, after all, this is unlike any other kind of real estate loan and as such has its own rules, terms, and procedures. If you think the hospitality business may be for you, make sure you choose a lender who will take the type to answer questions to your satisfaction. With how the market is these days, there are plenty of lenders out there competing for your business. Take your time and choose carefully from the several loan products they offer; if you're not satisfied, move on. The hotel business can be both challenging and rewarding. Depending on your location, service, and financing, it can be a great way to build long-term wealth.

Cameron Brown is an internet marketer specializing in ranking automation. For information on how a hotel loan can benefit you, visit Security National Capital.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


pgatour.com

Inside the Field: 2018 Quicken Loans National
pgatour.com
Check out the entire field and how they qualified for the 2018 Quicken Loans National. HOW THEY QUALIFIED. Winner - Quicken Loans National. Bill Haas Billy Hurley III Troy Merritt Kyle Stanley Winner - THE PLAYERS Championship. Rickie Fowler Si Woo ...



LendUp Loan 2018 Review
NerdWallet (blog)
Best as: A last resort in a true emergency. LendUp is an online lender that makes small loans — both lump-sum and installment — to borrowers with low credit scores. LendUp's rates are as high as traditional payday loans in some cases, and lower than ...



The Detroit News

Businesses win $1.2M in Quicken Loans Detroit Demo Day
The Detroit News
Diverse Metro Detroit businesses snagged some $1.2 million on Friday to further their ventures. Whittled down from 500 applicants, 15 finalists in the second annual Quicken Loans Detroit Demo Day contest showed off their pitches for the funding. The ...



The First Look: 2018 Quicken Loans National
pgatour.com
Stanley takes his shot at becoming the first back-to-back winner in the National's 12-year history. Anthony Kim came closest, following his 2008 victory by finishing third in '09. … Will this be the National's final edition? Quicken Loans takes its ...



Forbes

How To Save $1,000 On Your Student Loans - Forbes
Forbes
This one student loan hack will get you there. Here's what you need to know and how to start saving. Student Loan Debt: Overview. If you are one of more than ...
Consumer Debt Outlook for June 2018 | LendingTreeLending Tree

all 12 news articles »


The Hill

Bill to protect work licenses of student loan debtors is welcome development
The Hill
Americans owe nearly $1.5 trillion in student loans, with the average borrower owing around $30,000. Unfortunately, because of a number of factors, about 5 million Americans are in default on those loans. Worse still, a perverse policy underlying many ...



HuffPost

I Couldn't Afford To Pay My Student Loans. Then I Received A ...
HuffPost
Mark Wragg via Getty Images Why is it, in a day and age when more and more brown and black people are accessing higher education, that a bachelor's degree ...

and more »


Piggyback loans return, opening door to refinancing
Chicago Daily Herald
While rising interest rates have sharply reduced the number of mortgage borrowers who can refinance into a lower rate, rising home prices create opportunities for some borrowers to refinance into mortgages that are less costly in other respects.

and more »


People are getting loans to pay for their vacations
MarketWatch
Similar companies, including Airfordable and BookIt.com's PayDelay, specialize in travel installment loans. And lenders that typically offer personal loans, including Affirm and Marcus by Goldman Sachs, also advertise “travel” or “vacation” loans.



Washington Times

Here's the entire field for the 2018 Quicken Loans National at TPC Potomac
Washington Times
Tiger Woods, Rickie Fowler and Francesco Molinari are among the biggest names who will play in next week's Quicken Loans National at TPC Potomac at Avenel Farm in Potomac, Md. The event will first open to the public Wednesday for the pro-am, followed ...


Google News

home | site map
TIGER MEDIA© 2006