All Forum Posts by: Natalie Gelbke-Mattis

Anyone recommend a commercial lender to provide funding for a well established ice cream store in Ohio? This would be for the business and real estate. The business has been established for over 30 years and has a NOI of over 150K annually. Purchase price is $880,000. In talking to the seller, the bank he used had him put down substantial down payment (almost 50% LTV).

Looking for feedback on an approach to help grow my hospitality portfolio. Instead of discussing the possibility of owner finance with sellers - what if I offered the opportunity to JV where they are the equity partner? In the assets I am considering - the seller is typically selling because they no longer have the time or energy. I have the credit, experience and the knowledge on how to underwrite the deal to show their ROI in this arrangement vs a traditional sale. The seller will always retain the equity and would receive annual distributions - and could structure the agreement with an exit strategy that makes them comfortable. I recently analyzed an asset of vacation cabins - where the seller would earn 23% ROI over a 5 year term. Is my out of box thinking not make sense and be a waste of everyone's time?

Hello - My husband and I are experience real estate investors, with several LTR/MTR/STR located in Ohio and Geogial, in 2022, we purchased a seasonal boutique motel in Western New York. We complete renovated and turned into a successful operation with a current 11% rate cap. We are on the lookout for our next hospitality asset. Our buy box specifically focuses on vacation destination accommodations - including boutique motel/hotel, campgrounds, treehouses, cabins, etc.

As with most people starting out - having the 20%-30% equity to put in the deal is the challenge.  I have cash, but not enough for the purchase price i am targeting (500k-$1MM).   I want to approach sellers with either a seller carry arrangement - or become the equity partner in a Joint Venture.    I also would like to find equity partners.    Any advice that can be shared to try and get over this hurdle to be able to expand our portfolio?  I feel like i am in this awkward in the middle stage where I still need to work my corporate job, but right on the cusp to make real estate my fulltime job.   My husband and I are not afraid to work - just cannot find where to start.

Is there a loan product out there that would lend based on a borrower's entire rental portfolio? I have 3 rentals (2 SFR and one condo) with a lot of combined equity. Looking for one loan to tap in all equity. Is this a pipe dream?

It does not show very well online.  I would invest in some cosmetic improvements.  For the price you are charging, and the area, the rent is too high.  

 I am in the process of purchasing a Motel, and am interested in what funding options may be available.

Great story!  I am also in the process of purchasing a motel in NY.  Luckily, my husband is a general contractor so I don't have to deal with finding quality workers.  That really is over half the battle!   

I recently refinanced into a 1st lien HELOC and despite the higher interest rate, will save almost 80K in interest. You must be very disciplined in your spending, and have a significant higher income vs expenses. You are basically depositing all your income into the HELOC, and paying all of your expenses out of the HELOC. I am on-track to payoff my loan in 4 years (at current income/expense levels). And, i have full access to all my home's equity, if i need it. This is not for everyone, but if you can make the numbers work, it is a worthwhile alternative.

I have a calculator that breaks it down your scenario and will show you how long you will take to payoff your home, along with amount of interest paid. I would research 1st Lien HELOC as that is where I received the calculator, if you're interested.

Part of my intention is to sell them on the idea, and put on paper his ROI. The sellers are an older couple ready to retire from the Motel, so building the relationship is important in this transaction. I've never structured seller financing so i didn't want to come off as offensive.

I'll just go for it - at worst, he says no.

I am in the process of purchasing a motel, and i have a lot stacked against me in terms of coming up with 20-25% (I only have 15% liquid as of today) , rising interest rates, and cash reserves that may be needed in a commercial mortgage.  I am trying to liquidate some properties, but this will be the slowest selling season.   I want to approach the seller with terms for a short-term bridge interest only loan while i continue to raise capital, stabilize the motel (it is extremely underperforming) and hopeful for lower interest rates.   Would I be able to get feedback on the terms i would like to offer?  I want to make sure they are not offensive.  Any feedback will be greatly appreciated.