Shopping for a Hotel and a Hotel Loan
Finding the right hotel to invest in is hard. Finding a hotel loan may be even harder. Here are some tips to help you find the best hotel investment opportunities and position yourself to easily obtain a hotel loan.
Tip One--Location times three
You've heard it a thousand times. And it's no less true in the hotel industry. Location is the number one thing to consider when looking to invest in a hotel. It is also number two and three. If you are looking to attract those traveling by car, a motel by a highway may be a good option for you. If you are looking to attract more upscale travelers, a swank hotel in a popular city center is a better choice. But don't just consult a map. Make sure to physically examine the area to see what kind of establishments surround the hotel, and take an expert with you. The cost of a professional opinion now may save you thousands of dollars later. Look at how other hotels are doing in the area. If they aren't able to attract enough customers, you may not be able to either. When it comes to location do your homework and never settle!
Tip Two--Find other investors
Hotels are very pricey. Whether you are looking into the newer practice of buying a single hotel room, in buildings known as "condo hotels," or buying the whole building, finding other investors may be necessary to receive a hotel loan. Unlike today's practice of no money down financing and interest-only loans in the home real estate market, it is much harder to find such easy terms in the hotel loan industry. Finding a handsome down payment is easier if many people are in on the deal. Make sure you trust those you are going into business with and always spell out the terms and conditions before anything is signed. A background check may be a good idea as well. The bank you are getting a hotel loan with will do one before they do business with you. Don't you think you should do one on those you plan on doing business with?
Tip Three--Try a franchise
Do you think you will be a good hotel manager, but a bad marketer? Do you think you can handle lawsuits on your own? Does collecting information about a potential hotel investment scare you? Then a franchise might be the best option for you. Big hotel chains want you to do well so that they get paid well. They think of franchise owners as their customers. So they are willing to bend over backwards to make sure their, and your, name is out there. They help if litigation becomes an issue. And best of all, they are a wealth of information when you are thinking about purchasing one of their hotels. This not only helps when you are thinking about purchasing, but also when you are trying to get financing through a hotel loan. With a franchise you have access to other people who are doing the same thing you are doing. The other franchisees can answer questions, and the corporate representatives make the process smooth. Also, big hotel groups can afford to give incentives so investor groups can more easily obtain their first hotel.
Remember if you are looking for a hotel investment opportunity or a hotel loan you need to do your homework. Location is the most important thing to watch out for. Try to find others to make a secure investor group. And look into hotel franchises as a good option for your investment. If you have your information in line, and a good property picked out, shopping for your hotel loan will be as easy as a shopping trip to the mall.
Getting a hotel loan should not be a pain! National Commercial Funding can make your hotel purchase, and life, easy. Visit www.nationalcommercialfunding.com to find out more about getting a hotel loan. Patricia Norwood is an article writer at ioVentures, Inc.
Tip One--Location times three
You've heard it a thousand times. And it's no less true in the hotel industry. Location is the number one thing to consider when looking to invest in a hotel. It is also number two and three. If you are looking to attract those traveling by car, a motel by a highway may be a good option for you. If you are looking to attract more upscale travelers, a swank hotel in a popular city center is a better choice. But don't just consult a map. Make sure to physically examine the area to see what kind of establishments surround the hotel, and take an expert with you. The cost of a professional opinion now may save you thousands of dollars later. Look at how other hotels are doing in the area. If they aren't able to attract enough customers, you may not be able to either. When it comes to location do your homework and never settle!
Tip Two--Find other investors
Hotels are very pricey. Whether you are looking into the newer practice of buying a single hotel room, in buildings known as "condo hotels," or buying the whole building, finding other investors may be necessary to receive a hotel loan. Unlike today's practice of no money down financing and interest-only loans in the home real estate market, it is much harder to find such easy terms in the hotel loan industry. Finding a handsome down payment is easier if many people are in on the deal. Make sure you trust those you are going into business with and always spell out the terms and conditions before anything is signed. A background check may be a good idea as well. The bank you are getting a hotel loan with will do one before they do business with you. Don't you think you should do one on those you plan on doing business with?
Tip Three--Try a franchise
Do you think you will be a good hotel manager, but a bad marketer? Do you think you can handle lawsuits on your own? Does collecting information about a potential hotel investment scare you? Then a franchise might be the best option for you. Big hotel chains want you to do well so that they get paid well. They think of franchise owners as their customers. So they are willing to bend over backwards to make sure their, and your, name is out there. They help if litigation becomes an issue. And best of all, they are a wealth of information when you are thinking about purchasing one of their hotels. This not only helps when you are thinking about purchasing, but also when you are trying to get financing through a hotel loan. With a franchise you have access to other people who are doing the same thing you are doing. The other franchisees can answer questions, and the corporate representatives make the process smooth. Also, big hotel groups can afford to give incentives so investor groups can more easily obtain their first hotel.
Remember if you are looking for a hotel investment opportunity or a hotel loan you need to do your homework. Location is the most important thing to watch out for. Try to find others to make a secure investor group. And look into hotel franchises as a good option for your investment. If you have your information in line, and a good property picked out, shopping for your hotel loan will be as easy as a shopping trip to the mall.
Getting a hotel loan should not be a pain! National Commercial Funding can make your hotel purchase, and life, easy. Visit www.nationalcommercialfunding.com to find out more about getting a hotel loan. Patricia Norwood is an article writer at ioVentures, Inc.
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Source: http://www.articlealley.com/article_147587_33.html
foreclosure foreclosure homes foreclosure listings foreclosure properties foreclosure search buying foreclosure foreclosure loans foreclosure loan real estate real estate loan real estate loan rates real estate loan rate real estate loan calculator real estate interest rates real estate mortgage loan real estate loans real estate loan broker business bisniz investment loan student loan mortgage
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