One of the most solid areas of investment for any entrepreneur is acquiring a hotel, especially one which is in an area that features convention centers and or airports because that’s where clientele can be drawn from. Convincing a lender to finance a bridge loan so you can acquire hotel property is much easier when a ready source of income can be demonstrated in the region surrounding that hotel. Here’s how it can be advantageous to use a bridge loan to acquire desirable hotel property.
Advantages Which Banks Lack
Most traditional lenders like banks simply cannot structure a deal to finance a hotel like a private lender can, because they are subject to regulatory constraints and time constraints. Private lenders are under no such limitations and can include shorter closing windows, shorter-term financing, and possibly even personal guarantees. Many hotel bridge loans even include capital for a process improvement plan, or for renovations which are necessary to bring it in the front line of area hotels.
The Ideal Opportunity
What is really necessary to convince a private lender to finance your bridge loan, is to acquire a hotel property in an area which is not already saturated with hotels, so that your new purchase will become popular in the area. Then, if there are other strong factors that will contribute to demand in that region, it will become much more appealing to a lender and will become much less of a risk to finance the bridge loan. When these factors can be guaranteed in a new purchase, it will be far easier to find a private lender who is interested in financing your bridge loan.
Interested in setting up a bridge loan?
Sometimes a bridge loan can be just the right financial move for an entrepreneur who is involved with more than one property. Contact us at Monstera Lending Group to find out if we can be of assistance in funding your next real estate venture.