I want to put this deal together and don't know how i should really structure the whole thing.

[Johnny Brown]

Okay so I have found a property for 13 million dollars this is a hotel and right now its noi is at 6.5M but it has a potential to have a noi of 152M. Just by that lets me know that business must be very slow or not ran right at all. So here is my plan I have some investors but plan on getting more involved but how would I pay my investors back monthly or annually? This would be our first deal as a group and I want us to go big. I came up with some numbers but I am scared we are going to have to form a reit because thats a lot of money. I was gone see if we could get the hotel for 10.5M. Like I know I want long term investors because we want to do a 15 year hold with or investment. But for something like this what would be a good percentage on the return?

[Bill Gulley]

In reality Johnny, if you need to ask if returns should be monthly or annually, you're in way over your head. It could be in a combination of delayed payments that could eventually become a monthly or quarterly payment. Lag time, cash flow, seasonal concerns, repairs/maintenance, management requirements in operations, staff needs to be paid first, will determine when and how investors can be paid. I'd say you're on the wrong site as well, we've only had one other thread concerning hotel/motel or hospitality deals that I recall. Good luck :)