The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Buying an hotel with a loan

castman

New Contributor
Jul 30, 2017
1
2
13
35
Los angeles
I need an advice, is a good idea to buy an hotel with a loan planning to pay it from the business revenue? if it is what will be a good term to take it and what other things may be good to look at before doing business.
 

Become a Fastlane INSIDER to view the forum ad free.

acerseller

Contributor
FASTLANE INSIDER
Jan 21, 2017
24
59
25
37
US
castman, I'm all for taking on debt to acquire cashflowing assets.

That said, if you have to ask this question (both how do you do due diligence on a hotel and what would be an optimal loan term), you shouldn't do it.

I'm going to make assumptions based on your two line post, so sorry in advance if these are off base: you don't have any money and you don't have any hotel experience.

Yet you want to purchase something that requires a lot of money (operating capital post purchase, not just acquisition), and requires a lot of experience.

Reads to me like doing the above with a loan would be a terrible idea.
 

BrooklynHustle

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Apr 3, 2014
736
1,458
441
36
DMV
appmagic.co
I need an advice, is a good idea to buy an hotel with a loan planning to pay it from the business revenue? if it is what will be a good term to take it and what other things may be good to look at before doing business.
If you want to pursue a plan of this nature it's time to put in the time and research and see how it could be feasible and if so, what you would need to put in place

Posting on an online forum isn't going to cut it
 

Scot

Ductus Exemplo
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 10, 2016
2,703
12,371
2,441
Florida
If you need to ask if it's a good idea to buy a hotel with a loan you maybe shouldn't be buying a hotel.

Buying a hotel isn't something you go half cocked on. It's something that requires a lot of due diligence, work and experience.

Also, I've actually researched this one out of curiosity. You probably will not find a bank that will loan you money for a hotel unless you already own one and can show you've run it profitably.

That's the cold hard truth. Banks are stingy with money and they're very skeptical of the hospitality industry.
 
Last edited:

BrooklynHustle

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Apr 3, 2014
736
1,458
441
36
DMV
appmagic.co

Raoul Duke

I'm not going to live by their rules anymore.
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Feb 26, 2016
1,360
4,809
1,135
I need an advice, is a good idea to buy an hotel with a loan planning to pay it from the business revenue? if it is what will be a good term to take it and what other things may be good to look at before doing business.

 

Become a Fastlane INSIDER to view the forum ad free.

levijean

Bronze Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jan 22, 2017
254
385
197
USA
The vast majority of all hotel/motel sales involve bank financing where business revenues are used to pay off the note. So yes it is the norm. But the fact that you had to ask that question pretty much means its not a good idea for you. And most banks would probably agree with me.
 

Duane

Silver Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jul 23, 2015
300
848
316
25
Lakeland FL
I think it's a great idea, you should do it. Don't worry about all the numbers and terms, none of that really matters!

Let me know how it goes :thumbsup:
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom