All Forum Posts by: Mike Stohler

I would not use a credit card. Money is too cheap at the moment. Get a HELOC. Pay 2% instead of 12+ Also, always without waiver, do business in an LLC, and never in your personal name.

Good evening.  I own several hotels.  I think it would be hard for you to scale a project like this.  What does your building offer that a hotel doesn't?  Why would I stay at your place and not a hotel?  How are you going to market? These are the questions you have to ask.  At hotels, guests get points.  At hotels, we have a full staff that is trained for hospitality.  We are all over the internet on every travel and hotel site.  It is very difficult to compete with hotels unless you turn your place into a very trendy independent hotel that people want to stay at.  

@Carl Crump Good evening Carl! The SBA has a $5mil limit. It goes up a bit if you add solar and other green to the hotel. Banks are being a little skittish at the moment regarding hotels. There are several Capital groups that I can introduce you to that are currently lending for hotels. Most of them are doing CMBS loans.

I have read the press releases from the CEO's of the flags we own.  The hospitality hit was really felt in Asia but not too many places in Europe and hardly anything in the USA.  A few conferences have been postponed.  The virus has weakened to the point where the only ones that will be seriously impacted are those with weakened immune systems which is the norm for all viruses.  The media loves tragedy and chaos.  Remember the Mad Cow Disease? Tragically, people do die but misery loves company.

Herbie,

We own and operate hotels.  Please be careful.  Hotels are not anything like analyzing MF.  Hotels are a business with a lot of variables.  If you have specific questions ask away.

See everyone there.  Can't wait!

Michael, I agree.  We moved from Multi-family into hotel syndications.  The primary reason was the decrease in MF cap-rates while hotels have been very strong.

Too many variables and options.  What type of investor are you looking for?  What are they going to do?  Are they only a passive investor?  Who is carrying the loan?  Is this going to be a partnership or do you only want money?

The big question is how much experience do you have?  The less experience you have the riskier it is for the investor. 

This is your first multi-family. How many units?   How much experience do you have managing?  How much money are you talking about?

To start out you can't be greedy.  I'm not giving you any money to be your first experiment.  To see if you know what you are doing.

If the investor is experienced you might need to do a partnership and split the profits.  Work together to build something. gain experience.  

Once you have proven yourself you can go a few routes.  You can do a flat % monthly or quarterly return.  You can do a preferred return until capital equals zero then after that the % changes.  For example, If an investor gives me $500,000 they will get 80% of all net until they get back their capital plus 15%.  After that, I get 80% of all profits.

This allows you to pay off the investor quicker.  You don't get paid as much at the beginning but that is OK.  This is about making the investor happy first so that they invest with you again.

It will be hard if you don't have experience.  You might have to sacrifice your % in order to gain trust.

Good Evening.  We do Hotel Syndications with Qualified Investors. Usually a 506(c).  We just closed on a 506(c) on November 1st.  Radisson Country Inn & Suites in Arizona.  We are staying away from Crowd Funding sites because we like to keep our investor pool small and more intimate.

  A 1031 exchange can work but you have to be on the ownership side which might cause problems with the other investors.

We would normally set-up a Delaware Statutory Trust(DST) with a Tenant-in-Common(Tic) structure.

It gets a little tricky if you have several syndicators getting paid one way and a TIC getting paid another. It can be done but the syndicator would have to be transparent in the paperwork.

1031's into hotels are best in a hotel that is not doing a syndication but rather gathering limited partners on the ownership side.

Michael, our group has hotels in Arizona and in Georgia.  We will be actively searching for our next one in the first quarter of next year.