How hard would it be for me to buy a cheap hotel or motel with bad credit and no money to put down?
I can run a hotel, it's just a matter of getting it and getting it going
46-50, F
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MarkPaul · 26-30, M
Not hard. Leverage the value of the hotel and the property it is on by using it as collateral for the loan. Run the numbers... if you can meet the monthly mortgage to pay the loan back... bam... you have the hotel for no money down.
indyjoe · 56-60, M
@MarkPaul ….She can't use the hotel and property she's wanting to buy as collateral, it becomes collateral when and if they grant the loan. You can't put up for collateral something you don't own. I know because I tried to get a business loan once and the first question they asked was did I have any money to put down and/or anything I could put up for collateral. Same thing everywhere I went. They figure in the value of the purchase you wish to make...but they won't consider lending money for it if the true value is less than the asking price and you have no money or property of your own to put down on it because they intend to get their money back if you can't pay. And don't forget she said she had bad credit too.
MarkPaul · 26-30, M
@indyjoe Her bad credit is troubling. Depending on her risk tolerance, she could talk her way into a loan that values the monthly income she projects from the property. Again, we would need more details to run the numbers to determine if she could clear enough of a profit (or any profit at all) or if she would simply drive her bad credit even lower.