Mar '23 • General discussion
Here's How We Bought a $12M+ hotel For $8.3M with NO MONEY DOWN.
. . We did it by ASSUMING the existing mortgage on the property. The lender told our hotel operator that their borrower (and seller) was ready to walk away from the property. When we looked at the numbers and visited the hotel, we proposed to the lender that we will assume the underlying financing.
. Normally with hotels (that is prior to Covid), one has to bring 30-35% downpayment and the lender will finance the rest. On an $8.3M purchase, we would need to bring as much as $2.9M to the closing table.
. We reasoned with the lender that since hotels have gone down in value, in ADR and occupancy...it was hard to get new bank financing on it...and therefore, a mortgage assumption was the only way the deal would work.
. The lender was so desperate they even agreed to waive the 1% assumption fee. And that was how we bought this hotel for NO MONEY DOWN.
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Here's How We Bought a $12M+ hotel For $8.3M with NO MONEY DOWN.
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