All Forum Posts by: Jonathan Orr

@Mike Mankowski What type of financing are you inquiring about?  Equity, debt?

As a hotel developer I am also looking for financing for ground up projects.  However my main focus right now is on the equity side and partners for projects.

In terms of looking for people that are inquiring about financing I think you would have to go to the source.  I find that a majority of hotel talk comes at lodging conferences.  However if you reach out to brokers that specialize in the sale of hotels that would be your best bet.

A LLC will be cheaper to create. If the warehouse will be generating any sort of income or if you have tenants I would put it under its own LLC. It is always recommend to put real estate assets under its own llc so if there was ever a incident and you were being sued, you would be protect by the corporate vail.

I will keep my ear to the ground to see if anything comes across my desk.  

Have you ever tried direct marketing directly to MF and Retail owners?

Hey everyone. I was wondering if there were any agents out there that focused in purchasing properties on the MLS via creative financing (seller financing, lease option, partial equity, JV Scenarios with home owners, etc....) I am in Southern California and would be interested in talking with agents or brokers that do so for clients.

I agree Jimmy.  It was really comparing to Multi family or Retail.  You are right developers will typically sell after the stabilization of the hotel, or even upon CofO.  I am even developing a hotel now that we are selling at completion.  

@Maria V. I agree with Ricky, getting an experienced developer would do a lot for you.  Of course he would probably want to develop rather than sell.  However if you are trying to figure the sell vs develop I know that getting a group to do a feasibility can do a lot for you.  They can get as detailed as future cash flow and rough construction numbers.

A good feasibility study is not cheap but if you are serious about going down the road of developing and are willing to wait to reap the benefits it is DEFINITELY worth it to get a study.  I think that is the first step to decided which direction you want to go.  

If you decide that selling it is the way to go you can sell for a higher value because you have a study and can sell it as a future development opportunity.

If I were you I would get a study and then get a good real estate broker to give you an idea about pricing of selling as is.

 Really depends on the hotel.  Developing a new major brand limited service (Hampton Inn for example) would run about 14 million in construction costs.  Not including land or any development costs.

If you had a stabilized one in the same area that is lets say 7 years old it could run for over 20 million easy if it producing well.

@Donald Taite are you looking to purchase existing assets? The hotel market is limited because typically the people that build them do not let them go or they change hands in a small circle of hotel owners compared to retail or Multi.  Once a hotel has a good flag and management it can be a long term profitable asset.  That is why I decided to start from the beginning and go from the ground up instead of competing in the buying of them.

 Multi family out the gate will perform better than hotel.  However most people don't realize that a hotel is basically MF with a high turnover rate.  Instead of months it is days.  It also does have high expenses. The real key with Hotels is your manager.  A good hotel management group makes your breaks your hotel.

I focus in ground up hotel development here in the Western US.  We develop and build Major brand limited service. 

In my personal opinion, MF is so competitive and I have be focusing solely in hotels so I feel it is a strong asset class.  Also hotel typically fall behind the trends in the market so according to several market experts we still have a good amount of good years remaining in hotels.