Need Help with "Flipping" Hotel ... - Posted by PJ

Posted by jtp on January 31, 2006 at 23:30:06:

This I’ve got to see! Did you get this deal done?

Need Help with “Flipping” Hotel … - Posted by PJ

Posted by PJ on December 01, 2005 at 14:48:48:

I know 2 owners of hotels that are looking to sell asap.

I know 2 people who are looking to buy a hotel asap.

I was thinking of a way to put them together and make some profit.

I have flipped many houses by “assignment of contract”

Is it possible to do something similar in this situation?

For example:

Owner wants 1.5 million for hotel.

I know a buyer willing to pay 1.6 million for this hotel.

Can I just create an assignable contract with OWNER to buy for 1.5 mil and then assign my contract for 100k ?

anyone done this kinda thing before ?

Re: Need Help with “Flipping” Hotel … - Posted by Walt

Posted by Walt on December 05, 2005 at 18:01:40:

You can finance it as a business purchase and I think we can find a way to roll some profit in for you. The option is the way to go and I think it can be used for this if presented properly. Packaged this way, you could get 100% financing for the buyers if the cash flow is right. Feel free to contact me for more details.

Walt
solution@ev1.net

Re: Need Help with “Flipping” Hotel … - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on December 01, 2005 at 16:52:20:

“Purchase option”.
Search the term and you will know what you need to do.

Re: Need Help with “Flipping” Hotel … - Posted by PJ

Posted by PJ on December 02, 2005 at 21:41:00:

I did the search on purchase option, but it does not relate to my situation.

My assignment fee will be $100,000 in this deal.

The buyer does not have $100,000 cash to pay me at closing.

The buyer will most likely want to FINANCE my fee into his Loan to purchase the motel.

So, how can this be accomplished ?

Will a traditional commercial lender allow a 100k assignment to be financed ?

Are there other ways of doing this deal ?

Re: Need Help with “Flipping” Hotel … - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on December 05, 2005 at 07:20:38:

If they can’t come up with 100K for the assignment fee than how are they going to come up with the 30-40% downpayment?

Re: Need Help with “Flipping” Hotel … - Posted by Mike

Posted by Mike on December 05, 2005 at 11:58:46:

Start calling around to commercial lenders and see if they allow an assignment fee.

>>>If they can’t come up with 100K for the assignment fee than how are they going to come up with the 30-40% downpayment?
<<<

Who says you need 30-40% down for a downpayment? If any of your buyers want to make an attempt to live in the hotel you may be able to get 100% LTV, higher rate though.