All Forum Posts by: Menachem Krasnjanski

@Mike Hern it made 450k net on 810 gross. Potential financing would be about 250k, so about 200k net

@Henry Clark thanks for the reply. It made 450k last year net on 810k gross (the previous owners dont have a mortgage) and the potential financing would be about 250k.

@Mike Hern I'm looking at a hotel deal and I'm trying to underwrite it in a safe way. I have a loan offer that would be 30 percent of the annual revenue (e.g. 1 million in revenue and 25,000 a month in financing or 300,000 a year or 30 percent.)

@Mike Hern thanks for the reply. Would you consider a loan that is 30 percent of gross over leveraged.

What was the experience of motel owners during 2008 and 2009 due to the recession. Did you find that budget hotels (motel 6, super 8, ect...) were more recession resistant, or did you find your profits went down significantly or you had a losing year.

@Kurt Chambliss thanks for the follow up. I'll bring it up to my partners.

@Cory J Thornton thanks for the follow up. You gave me alot to think about.

My partners and I have been trying to get financing for a 55 room motel for a couple of months, but many of the banks are hesitant about lending now. We found a bank that was willing to set us up with a SBA 7(a) loan that would require very little down and would have a very low prepayment penalty. The rate is prime plus 1.75 percent (prime is currently 8 percent which we cashflow fine at) and adjusts quarterly. One of my partners is concerned that with the current economic climate the rates may go up to 11, 12, or 13 percent (or more...) which would cut heavily into cashflow and severely diminish our returns. Should we have such a concern?

Is anyone else having an issue playing the podcasts. I restarted my phone, force stopped the app, cleared the cache and I still can't play the podcast. It just displays "unable to play"

@Tim Delaney my thoughts were like you're saying to move away from a problem property. I'm not sure how they're paying me, they approached me with the offer.