30 Unit Hotel: Private Lender + Seller Financing

[Ben Ertl]

Hi all,

I'm exploring an opportunity to by a hotel that my wife and I would live in.  My parents owned a similar property, I had helped run it throughout growing up.  I'm involved in the hotel industry career-wise as well.

I've been focused on multi-families for quite some time, but I'm really leaning on starting a hotel with my wife (we'd live in the house on the premises).  The sellers are retiring and are willing to do seller financing; however, they have plenty of money (150k) left on their current mortgage which they'd need paid off upon sale.

If the whole purchase price (350k) could be seller financed they'd do it, but they need that current mortgage paid off.  Has anyone run into a scenario of using private lenders to front the cash for the down-payment in conjunction with seller financing for a commercial property such as this?

Lots of information I'm not giving here: RevPar, occupancy, taxes, 30 units, location, seasonality, etc but I'd like to see about the financing viability first as a possibility if the numbers look good.