I have a Hotel/Motel deal that I am trying to structure using creative financing. I want to purchase and run this business for myself and my family to run as a family owned small business.
This is a brief overview of the deal, that I want to propose to the Hotel/Motel Seller and a Note Buyer.
I would like to do a simultaneous closing, but want to make sure that the end note buyer is in place first. So I am trying to set up the deal where its attractive to both the seller and the note buyer and of course with reasonable payment terms for me.
Hotel/Motel
List Price $7,000,000
Current Mortgage $2,000,000 at 5%
80% Occupancy
10% Cap Rate
Pre-Tax Cash Flow $2,000,000
Property is in Florida Seller Hotel/Motel (A), Me (B Investor), and End Note Buyer (C) 1. (A) Seller will seller finance me (B) investor, the Hotel/Motel
2. The note will then be sold (Full or Partial) to an End Note Buyer (C) and cash out (A)
3. (B) me, makes payments to (C) for an agreed upon term i.e. 7yr Balloon
Let me know your thoughts. Are there any commercial note buyers that are capable of or would even be interested in purchasing a $7mil note or partial note?
