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Question: I am looking at purchasing an old Motel it's vacant now but it is a really good place to renovate and run as a boutique Motel. We would showcase the units on Airbnb in uh VRBO. I don't own any hotels currently but I do own and operate three short-term rental properties and they are single-family homes. I have great credit and we'll keep my W-2 job for the time being. I earn around 300K dollars per year. I should add the property needs about 800k in renovations and FF&E and they are looking to sell at around 2 million. How would you structure this loan? What could I expect for terms and loan proceeds?
Thanks in advance,
Read more here – https://sbaloans.blog/sba-7a/getting-an-sba-7a-loan-for-a-hotel/
[00:05] Beau introduces this episode’s Q&A session with Bill Davis.
[00:15] Go to investorfinancingpodcast.com/ask to ask other questions
[01:20] How good is owning and operating short-term rentals?
[02:00] Matching up the hospitality business with what SBA is looking for as far as guidelines
[02:21] Find SBA banks that like hospitality
[03:04] Having at least two-three years of experience in short-term rental
[03:20] How would an SBA 7a be a good choice for a startup?
[03:54] Computing the total project costs
[04:22] What if the seller is willing to do a carryback?
[05:15] Reasons why SBA 7a is a better option
[05:30] One of the most asked questions
[05:48] Airbnb’s newest proposal about opening its first hotel in LA that’s going to run itself through technology