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All Forum Posts by: Andria Kobylinski

Andria Kobylinski has started 19 posts and replied 68 times.

Post: Boutique Hotel Investing - Financing

Andria KobylinskiPosted
  • Rental Property Investor
  • Richmond, VA
  • Posts 76
  • Votes 27
Quote from @Marty Johnston:

@Andria Kobylinski congrats on your venture into hospitality!

Its great that the seller is will to carry a note in a seller 2nd as well, that will help reduce your require monthly payment with the right lenders. Some/many lenders don't like a 2nd mortgage behind their first (like the skin in the game), however there are both bridge or permanent financing options out there allowing you to leverage anywhere from 90% CLTV - 100% CLTV, but don't expect good terms... Many of these lenders allowing 2nds behind them are more expensive capital (10's - 13's in our current market [high rates - but now showing signs of coming down]). If the property can service the debt at 90% leverage between a senior 1st and the seller second, you're looking at a good investment!

Feel free to DM me if interested in discussing more, would be happy to assist.

Thank you, very helpful. And yes, we are projected be able to service the debt at 90% (or better). Would love to set up a call.

Post: Boutique Hotel Investing - Financing

Andria KobylinskiPosted
  • Rental Property Investor
  • Richmond, VA
  • Posts 76
  • Votes 27
Quote from @Tommy Adeoye:

Fantastic transition from STRs to boutique hotels. Where better than Richmond, VA, a promising location for such an endeavor? Your case is indeed a challenging one, especially when traditional lenders are hesitant.

Here are a few avenues folks often explore in times like this:

You are already on this path - Owner Financing: It's great that the seller is willing to finance a portion of the deal. Stretch the terms or better still negotiating favorable terms with the seller could significantly ease the burden of acquiring the property.

Private Investors: As of December, the stock/forex market are performing bullishly. Remind them , how they felt back in July and how your deal edges against the amount of cash pumped into the economy (inflation). They might be interested in partnering or providing funding for your project. 

As mentioned by @Chris Mason, Bridge Loans: These short-term loans can provide immediate financing until more traditional financing becomes available or until the property stabilizes and becomes more attractive to lenders.Interest rates and stipulations may be a pain.

Out of the box here and requires a few more research, SBA Loans: Small Business Administration loans can be an option, especially the SBA 7(a) loan program, which can be used for hotel acquisitions.

I heard someone  mention - Mezzanine Financing: it involves a combination of debt and equity financing, which might appeal to some investors looking for higher returns. Not sure if this appeals to you

Joint Ventures: Partnering with a larger hospitality group or another investor might not only bring in funding but also expertise and industry connections. 40% of a deal is better than no deal. Reverse engineer the list of most recently acquired hospitality business built or bought within the 30-40mile radius, You’d be puzzled at how much capital they have to play with.

Crowdfunding or Real Estate Syndication: Platforms dedicated to real estate investment might have investors interested in backing a boutique hotel project. Your project may not have enough meat in the bone for syndication but if it scales, why now explore.

    Caveat: each avenue comes with its pros and cons. However, weighing your options and performing due diligence carefully based on your specific circumstances, the property's potential, and your long-term goals. There should be some financial advisors or real estate attorneys on here around your area who specializes in hospitality ventures and might provide valuable insights tailored to your situation. These guys operate like flies on the wall. Best of luck pulling down that boutique hotel.

    @Tommy Adeoye Wow, thank you for the thorough explanation. Definitely some ideas in there I did not consider and will look into. Also thank you for the added detail to what @Chris Mason was saying. Makes more sense to me now

    Post: Boutique Hotel Investing - Financing

    Andria KobylinskiPosted
    • Rental Property Investor
    • Richmond, VA
    • Posts 76
    • Votes 27
    Quote from @Chris Mason:

    Bridge loan. Reach out to a commercial mortgage broker. 


     They seem to be having an issue with the theory of having a "hotel" with no onsite management. She was comparing it more to a bed and breakfast, hard to finance.

    Post: Boutique Hotel Investing - Financing

    Andria KobylinskiPosted
    • Rental Property Investor
    • Richmond, VA
    • Posts 76
    • Votes 27

    Like many in the STR community we has switched our target from STRs to Boutique Hotel investing. We have honed in on a great property with tons on potential here in Richmond, VA. As expected the banks I've talked to thus far (that I have great relationships with) are skeptical about funding. Seller will owner finance the portion she can.

    To those who have been walking down this path, how are you funding these projects? Thanks!

    Post: Deal Structure for Short Term Rental Acquisition

    Andria KobylinskiPosted
    • Rental Property Investor
    • Richmond, VA
    • Posts 76
    • Votes 27

    @Ashish Acharya Thank you for the response.Yes, he is happy to structure it as a loan. I am just curious what would constitute a win/ win deal for him and I. I think he'd like to be paid back quicker over a long term lend. What percentage do you think is reasonable in this market. What length of time? 

    Post: Deal Structure for Short Term Rental Acquisition

    Andria KobylinskiPosted
    • Rental Property Investor
    • Richmond, VA
    • Posts 76
    • Votes 27

    Hi Guys, working on building a portfolio of short term rentals. I have a few people who are interested in investing. The thought is to borrow as a loan for downpayment and start up costs. How would you structure the deal? 

    Post: airbnb arbitrage and real estate license in NC

    Andria KobylinskiPosted
    • Rental Property Investor
    • Richmond, VA
    • Posts 76
    • Votes 27

    @Mark Lee I am so interested to know if you moved forward with the arbitrage deal. I have recently gotten into them and they have been very profitable in VA. Did your partner end up getting a RE license if you did move forward?

    Post: Kentucky and Tennessee investors

    Andria KobylinskiPosted
    • Rental Property Investor
    • Richmond, VA
    • Posts 76
    • Votes 27

    Looking for Tennessee and Kentucky investors! My husbandS job territory recently expanded to Tennessee and Kentucky. We are hoping to pick up a few buy-and-hold and short term rental properties in each or either of the states. Do you have suggestions on cities for me to start doing some due diligence on? Where are these strategies working for you? Would like to stay under $250k

    Post: Could I get some help analyzing this SFR deal?

    Andria KobylinskiPosted
    • Rental Property Investor
    • Richmond, VA
    • Posts 76
    • Votes 27

    @Account Closed

    I agree with these guys. Have you gotten pre-approved yet? You might pay a little higher interest and unless your paying cash your closing costs will be higher on that property. I also buy in VB/Norfolk and am an agent in Richmond. Check out the Facebook page "Hampton Road Real Estate Investors" there are wholesalers and great deals on there. Also check out your local investing meetings. trigofva.com for networking and they have properties on their website. Hope this helps.

    Post: Estimating Rehab Costs on an Auction Property

    Andria KobylinskiPosted
    • Rental Property Investor
    • Richmond, VA
    • Posts 76
    • Votes 27

    @Account Closed thank you both. All good things for me to note!