RE: Advise on Obtaining a loan for Airbnb Mixed Use Hotel

[Clark Childers]

I am trying to purchase an 8 cabin lodge in a resort town. I've already had tremendous success with a 10 unit Airbnb hotel I have and we are looking to open a second location. The asking price is 650k. I have enough cash for 25% down. I have run the numbers and done the research and I have proof that I know what I am doing... Why am I having such a hard time finding a loan through banks and credit unions? I haven't explored hard money lenders because I can't handle the high percentage rates and balloon payments. Crowdfunding lenders seem to only apply to flips and I want to hold on to this one. Any advice? 

[James W.]

@Clark Childers I very much want to hear a response on this. I own something similar all cash and want to put some leverage on it. I’ve purchased several single family properties all cash too and I’m hoping by offering as a portfolio, lenders won’t get too caught up on the one motel-ish property. I’m going try local banks and credit unions, so I’ll let you know what I figure out.

[Adam Horowitz]

@Clark Childers HML only for a limited time. 4 to 6 months. then rental refinance out of it. This will only cost you 4 to 6 months of high interest. Does that help with the high interest fears?

As for balloon payments, the rental refinance will provide you enough to pay back the balloon payment. If you repair wisely and the ARV rises enough, you will end up with a nice little cushion after the balloon that may pay you back for the interest and points on the HML.

[Clark Childers]

It gives me pause as the first 6 months is when I am most vulnerable as we will be doing remodel work and improvements and the property will only be running at 50% capacity. If anything, I'd want a traditional loan with a deferred payment or interest-only payment for the first 6 months if at all possible. That said... Any HML's for this kind of property that you would recommend?