Articles About Finance And Refinancing

No Hotel Loan for You!

Meeting the requirements to get a decent hotel loan from your local lender can be difficult but not impossible. Let's face it, what lender wants to put money up for a roach infested dump in downtown Detroit? You'd have to get a separate loan just for the insurance.

Most lenders will only finance hotel properties that are "flagged". In other words, most banks, public and private lenders will only provide hotel loans to individuals who are starting a franchise under certain major hotel/motel chains such as Best Western, Hilton, Super 8 and other well-established hospitality brands; Sid's Sleep Shack need not apply. In addition to being a virtual nation-wide brand, the particular establishment in question needs to show a profitable operating and occupancy history.

Even if you want to build a new hotel/motel from the ground up, forget about starting your own brand; most lenders will only provide hotel loans to build the same "flagged" hospitality companies as they will for the purchase of an existing property. Besides having a well-known flag, getting a hotel loan for a new property is possible provided it is well located and can be provided with strong management.

Lenders reserve the best hotel loan rates and terms for properties that are well cared for, attractive, and have pleasing amenities like pools, wireless internet, cable, and complimentary continental breakfast buffets.

Hotel loan terms will, of coarse, vary from lender to lender, but most banks and other investment capital institutions provide 5, 10, or 20 year loan terms for amounts up to $2,000,000. These loans can carry an interest rate ranging from 7% to 8% and typically carry a recourse clause, although some lenders are more flexible than others in this regard.

Just a brief note on recourse loans; this type of loan hold your personal assets liable in the event you default on the hotel loan-seriously bad news if your franchise doesn't turn out to be as successful as you originally thought. This is the lender's way of protecting its assets by separating those who are serious about the hotel business from those that just want to try something new. If you're not familiar with the details of this loan, you should either educate yourself thoroughly first or look around for a non-recourse loan. The terms of a non-recourse loan simply hold the hotel, or whatever else you spent the loan funds on, liable in the event you default.

If you're planning on borrowing over $2,000,000 to build or buy a larger hotel/motel, the interest rates may be a little better, although not much. Interest rate lows can be more favorable by up to a half percentage point, while to current ceiling is still hovering around 8%. With a larger hotel loan comes a longer loan term, usually 20 to 25 years. One boon of a larger loan is that most institutions offer limited recourse in the event of a default.

Meeting hotel loan requirements can be difficult, after all, this is unlike any other kind of real estate loan and as such has its own rules, terms, and procedures. If you think the hospitality business may be for you, make sure you choose a lender who will take the type to answer questions to your satisfaction. With how the market is these days, there are plenty of lenders out there competing for your business. Take your time and choose carefully from the several loan products they offer; if you're not satisfied, move on. The hotel business can be both challenging and rewarding. Depending on your location, service, and financing, it can be a great way to build long-term wealth.

Cameron Brown is an internet marketer specializing in ranking automation. For information on how a hotel loan can benefit you, visit Security National Capital.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

A secured bad credit home mortgage loan comes with reduced interest rates
A secured bad credit home mortgage loan comes with reduced interest rates

A Low Interest Debt Consolidation Loan When Your Credit Card Interest Is Too High
You just didn't realize you were digging a hole for yourself. You were paying bills and buying ordinary things. Can you even remember when you did anything truly luxurious? Yet, your credit card spending still got away from you and if someone asked you, you doubt you could explain it. In fact, it would be hard to explain anything with the current level of fog in your brain; you wonder, should you ask a doctor for anti-depressants? Somehow, everything is harder; it feels as of you are walking through invisible treacle and there is no-one to rescue you. There is an answer and you don't need a rescuer. What you do need is a low interest debt consolidation loan.

Secured Loans: High Amount at Low Interest Rates
People avail secured loans for various reasons. Secured loans are loans that need collateral to be pledged. The collateral can be your house, property or any high value possession. There are various advantages of a secured loan which are discussed below:

Low Interest Rate Auto Loan - Increase Chances Of Getting Approved For A Low Rate
Getting approved for an auto loan is easy. However, obtaining a low rate auto loan may be a bit more challenging. When financing any sort of merchandise, the interest rate received makes a huge difference.

Refinancing Mortgage Loan - Get The Lowest Interest Rate You Can When Refinancing
Refinancing can be a very simple process. You fill out a few applications, take the best offer and you're done.

High Interest Rates Mean Mortgage Refinancing According to GuideToLenders.com
Professional master of business administration (MBA) role models such as Kathy Giusti and Rich Fairbank provide mentorship and advice online through education sites like MBA-Business-Schools.com. Future and current MBA students can prosper from the wisdom of successful business professionals and boost their careers through invaluable learning tools and resources.

Interest Rate On Refinance Home Loans Explained
The interest rate issue is the main problem when one wants to refinance a home loan. This is because the costs associated with home loans are high and thus, a single point raise on the interest rate can cost thousands of dollars. There are different reasons why one may want to refinance but the interest rate is always an important variable.

Auto Loans Low Interest Bad Credit: Car Loan without Credit Problem
Owning a car is apart from necessity enhances your status in the society as well. Driven by the urge due to either of the two reasons, you may wish to own a swanky car but are restrained by financial constraints. Going for loans is a good option but if you are a bad credit holder than a fear psychosis of exorbitant rates or being discriminated may check your advances for the quest of normal loans. This myth is now unshackling as bad creditors like you can approach for bad credit auto loans available at low interest rate. These loans are especially fabricated for people having CCJ?s, arrears, any default payment or due payments. Some facts and figure The lender is more interested in your current repaying capacity rather than seeing the ...

Low Interest Rate Used Car Loan  Car at Simply No Cost
Introduction

Get Personal Loan, Home Loan, Car Loan after Bankruptcy at Low Rate of Interest
Do you feel your chances of getting approved for a loan after filing bankruptcy is bleak. Wait for a while, bankruptcy loan can help you even after filing for bankruptcy, getting approved for funds after a bankruptcy is not that daunting as you think.

Importance Of Interest Rate On Refinance Loans
The interest rate is an issue that should never be bypassed when it comes to refinance home loans. Its importance is crucial as it will determine whether you benefit from refinancing or not. Though other loan terms like loan length, loan amount, and other less important clauses should also be considered, the interest rate should be your main concern.

Credit Heaven Announces their Rate Busters Program to Slash Interest Rates for High Interest Loans and Credit Cards
The Rate Busters program is designed to achieve affordable and sustainable payments for borrowers by negotiating lower interest rates or periods of no interest on existing credit card, auto loans and mortgages. This in turn will maximize consumers' ability to reduce monthly payments, reduce debt, maintain or improve consumers' credit as well as reduce creditor's bad debt.

Low Rate Home Equity Loans - Refinancing For A Shorter Term And Better Rate
Looking for a better rate is a common reason people choose to refinance their home equity loan. But did you know that shortening your loan term can save you more money than reducing rates? Combine the two and you will save yourself thousands in interest costs and trim years off your payment schedule.

How to Find Lower Interest Rates on Bankruptcy Car Loans
Sadly, bankruptcy has become more common in recent years. Finding loans has gotten easier over the years as well. The loans are easily available but it is the interest rates attached to them that most people try to avoid. It doesnt make sense to get approved for a loan but not be able to make the monthly payments because the interest rates cause it to be so high. Educating yourself is the best defense in not being taken advantage of. Make sure you do the research and be patient when looking.