Upcoming recession and how to take advantage of it?
Hi everyone and I hope you all have a wonderful day,
First, a little bit about my background. Around December 2019, I partnered up with an experienced hotel operator in Colorado on a $3.5m hotel. That obviously didn't go well because Covid-19 hit and everything in the hospitality industry went upside down for a couple of months. The hotel is reopened but the traffic is VERY low but we are still hopeful that it will start picking up again soon.
The thing about this deal is that it seems to me that I learned so little about how everything (about how to purchase CRE) works in overall. We created the LLC, made an operating agreement, he did the loan through a local bank, we wired in the money and voila we take over in December. I got plenty of experience about how to run a hotel because I got thrown in and pretty much just told to operate a hotel with little to no guidance. The hotel was chugging along pretty nicely until the **** hit the fan. Now, I want to do my own deals to take advantage of the upcoming recession but, truthfully, I don't know where to start even. I started cold calling brokers and mortgage brokers but none took me seriously.
I am aiming to buy $1.5m to $2m apartment complex soon in the near future but I'm not even sure if I'm qualified for permanent financing yet? I know that I can get financing for 7% interest rate but that seems incredibly high for an apartment complex and, based on the numbers that I got for some deals on loopnet, that is pretty hard to turn a profit. We have around $650k in cash for this type of deals. Is there a chance that lenders will lend based on the property itself? My FICO is ~ 800 but I have no income (no 2018 2019 tax return) to back it.
Danh