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castman

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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.
 
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acerseller

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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

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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
 
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Scot

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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.
 
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BrooklynHustle

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Raoul Duke

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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.


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ljean

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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

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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:
 

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