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Updated almost 9 years ago on . Most recent reply

User Stats

10
Posts
2
Votes
Al Ghindal
  • Investor
  • Birmingham, AL
2
Votes |
10
Posts

Investor based Hotel deal hypo

Al Ghindal
  • Investor
  • Birmingham, AL
Posted

New member here, need some guidance on how to structure deal. I primarily develop franchised hotels construction start to finish and operate. Portfolio of 8 properties built with my own funds with proven track record. Want to get some feelers on using outside accredited investors on a per deal basis. 

For discussion sake lets say the project is a upper tier flag in a solid secondary market. $10 million turn key project, looking at 20% down ($2 million). Let's say on a 5 year proforma average it nets $600k after debt service. Me wearing hat as developer and construction would like 20% sweat equity in project or more. Incentive to investor would be me passing my construction savings on to the investor..hence lower debt service etc correlating to higher bottom line. 

Any referral to a firm that specializes in assisting in formations of deals like this whether it would involve a PPM, subscription agreement etc, please PM. I think at this stage would need more assistance in getting a term sheet. Or just some examples of how a deal like this would be presented to investors, I would say it is very similar to a multi-family or commercial retail deal. Thanks.

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