MOTEL bank financing?

[David Smith]

around 60 units in Midwest.   current 50% occupancy  --- gross income: $500K  expenses: $210K   -- price around $750K

Is it an OK deal?

For buyer, what type and term of loan to get ? how much down payment needed?  25%?  

[Ravi P.]

@Ethan Smith

Price is hard to say without more info.

As for Down payment hotels in general require a reasonable down payment. However if you get an SBA loan, you could put down as little 10% from what I remember, it may have changed to 15%. This would be your best bet, as there is not really an appetite to lend for non flagged motels. SBA guarantees a portion of the loan against default so the risk is reduced for the lender.