Hotel Syndication Complete!!!

[Michael Glaspie]

Investment Info:

Other commercial investment investment in Jesup.

Purchase price: $977,000

My team and I closed on a hotel syndication. In this deal, we purchased a property by assuming an existing loan and raising the equity portion. We were able to capture over $800,000 in equity as soon as we purchased it. Our strategy is a 3-5 year hold with a disposition at the end of year 5.

What made you interested in investing in this type of deal?

Our syndication company was presented an opportunity with an established hotel investor. So, we partnerd with him to make the deal happen.

How did you find this deal and how did you negotiate it?

This deal was presented to us. Once we had a chance to do our due diligence, we finalized the deal.

How did you finance this deal?

We operated under a 506c SEC filing to raise the equity position. We assumed the current loan.

How did you add value to the deal?

Through management and operational improvements we will be able to increase value.

What was the outcome?

We successfully captured $800,000 in equity upon close. Now we are implementing our improvement plan.

Lessons learned? Challenges?

Get 3x as many capital commitments as you need to raise. Not everyone will contribute.

[J Massey]

why didn't the existing borrower recover the equity if it was "in-place" and simply repay the loan and cash out? how are you able to capture equity the previous owner did not? good insights and thanks for sharing.