Did You Know How Hotel/Motel Financing Works

Did you know how hotel/motel financing works? If not let me enlighten you to a few things you need to know when seeking financing. First - is the property a flagged or non-flagged, if flagged that is good due to the property has a recognizable name and that means that you may be able to get better rates and terms and larger appraisal value than similar non-flagged properties. Second - who is in charge, if you have no hotel property management skills you need to make sure that the property income would be sufficient to cover you hiring a full-time hotel experience management team to run the property. Third - Done waste your money ordering an appraisal because the lender will handle that process. The appraiser will analyze the documents received from the current owner and compare the information with comparable properties to determine value. The value that the seller,buyer,investor comes up with are of no interest to the lender they are going to lend on a percentage of the value derived by the appraiser only.