January 24

Financing Options for a Boutique Hotel, SBA Financing Options, and MORE! [Q&A] OR How to Buy a Motel


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


Hospitality Financing, Hotel Lending, How to Buy a Motel, SBA 7a

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