All Forum Posts by: Dan Cho

Provide more information please? Sometimes comments like these are like saying looking for information on a car, without any details.

Hi Jon, new to the forum but I think with most lender they break it down into live in residency and commercial. With this I think the fact that its 29 units, even if you live there, they know that you are trying to make money with it thus they will always treat it as commercial.

I'm new to the forum, however I've have a finance background and I've been prowling the forum here so I'll give my 2 cents. Although a lot of people here are probably looking to make money and build wealth there is a subsection of the population who believe they have enough and care more about preserving their wealth. 

With this in mind they can leave the money in a bank account but with inflation they are losing 2-3% doing nothing, invest in the stock market but your volatility is riskier even with blue chip stocks going up and down a few percents a day and you can have something like the 08 recession where half your wealth is gone, and finally you have real estate where you can park your money and concentrate on cash flow. 

Some people here also are followers of the BRRR strategy and one way to do this is by buying your first house, lets say 100k, then after rehabbing and renting, they go back and get it refinanced. Now with refinance banks will usually give you 70% LTV thus you can buy another house and so on.

These are generics of why some people would prefer to buy with cash, obviously everything mentioned have a lot of steps involved.

Thanks You for the input.

@Matthew Schroeder Hi Matthew thanks for replying. I am certainly obtaining a hotel as an investment, but I am also obtaining it to become a owner operator. My entire life I've always loved hotels and have now thought why not live and work inside one. Also yes it's a Best Western hotel.

@Nick Brubaker Sounds like you have a good tenant. However I think it comes down to personal preference on how comfortable you are with the situation. The dog may be fine and have all the references in the world, however god forbid the dog bites someone is it worth the trouble? and is it something you will think back on in hindsight. 

I think the fact that you asked this question, you may already have your answer but perhaps your trying to get a change of opinion.

@Nathan Click thanks for getting back to me, to be honest I'm just seeing what kind of financing is out there. To be honest this is the first time I've heard of a mezz loan and it looks very interesting. So with the mezz loan is it a 2nd position loan after the seller financing loan? 

Using an example if the purchase price would be $2.2 million, the seller would carry $1.7 million, the mezz loan could be for $300k, and my personal money I would put in would be $200k. The seller would carry 1st position on loan, the mezz loan would be 2nd position, and I would be 3rd position on the loan? Is that correct?

@Nathan Click hey Nathan no the seller would be carrying $1.7 million, he wants $500k down to offer seller financing. I'd like to see if I could borrow 500k by offering perhaps a large down payment or some alternative forms of finance and am exploring different options.

@Kyle Davis would you mind giving an estimate on how much a hotel feasibility costs and how long a report takes?

Has anyone ever gotten a loan for a hotel? I'm interested in obtaining a hotel for $2.2 mil and the seller is offering finance for $500k down. I currently have $200k down and was wondering how I could go about obtaining financing for the rest of the $300k?