 Are
you looking for hotel financing or
refinancing? Our strong influence
with various banks around the nation
will help you get the loan you need.
Instead of approaching tons of random
banks that we don’t have affiliations
with (like some other brokers like
to boast), we package your deal and
approach the banks that we’ve
worked with in the past on similar
deals- the banks we know can handle
your loan in an efficient and competitive
manner, with fast results.
Download
Hospitality Overview 
| Overview |
| Eligible
Properties: |
National
franchises, full and limited service
hotel properties, extended stay
and all suite properties, independent
hotels |
| Eligible
Property Locations: |
Nationwide;
downtown, suburban, airports,
highway, resorts. Added plus with
property has solid market strength
as determined by RevPAR trends,
ADR comps, occupancy/breakeven,
and demographics. |
| Loan
Types: |
Acquisition,
Development, Refinance, Repositioning
Unless loan is funded completely
by a conventional lender, most
hotel loans are structured with
SBA 504 guarantees, as follows:
50% loan from conventional lender,
30-40% loan from local gov’t
appointed CDC (guaranteed by SBA
504), remaining down payment from
borrower. |
| Loan
Size: |
$1
Million to $7 Million |
| Debt
Service Coverage: |
Generally,
1.20 – 1.30, depending on
the quality of the location and
market. If previous year’s
tax returns don’t meet DSCR,
Reliant Capital Funding will create
supportable projections. |
| Loan-to-Value
Ratio: |
Up
to 90% maximum LTV. (80% for new
construction) |
| Loan
Term: |
10
to 25 years conventional, 10 or
20 years SBA 504 |
| Amortization: |
Full
amortization over term |
| Interest
Rates: |
Conventional
rate is pegged to the 30 day LIBOR
or similar index, and can range
from 1.5% to 3% over LIBOR, fixed
for 5 or 10 years.
SBA rate is pegged to 5 or 10
year Treasury, and is fixed for
20 years. Rates range from 5%
to 7%. |
| Fees: |
Reliant Capital Funding
Fees: We will price adjust
our fees according to level of
difficulty and other underwriting
considerations- typically 1-2%
of the loan amount- paid only
if a Commitment Letter is issued.
Third Party Fees:
The following fees can be included
in the financing. An appraisal
report can cost $5000. A Phase
1 environmental can cost $2000.
A survey, recording/filing fees
and title search is also the responsibility
of the borrower.
SBA Fees: SBA
504 can range from .5% to 1.5%
of the SBA loan amount. |
| Other: |
Subject
property can be used as sole collateral.
All owners over 19% must personally
guarantee loan. Both conventional
and SBA loans are fully assumable.
SBA portion loan has a 10 year
prepayment penalty, conventional
can range from 3-5 years. Previous
experience is not needed, but
preferred. |
| NOI
Calculation: |
Strongly
prefer to receive three full years
of operating history.
Revenues:
Underwrite revenues based on
the greater of last full fiscal
year or trailing 12 months.
Supportable projections using
market data, management experience,
new initiatives, etc. can be
used in place of historical
revenues if needed (determined
by RCF prior to package submission
to bank).
Expenses:
Underwrite expenses based on
the last full year or trailing
12 months. Expense projections
based on actual figures and
can be re-casted using industry
data averages and normalization
techniques.
|
| Pre-Application
(Term Sheet) Punch List |
Complete the ‘Information
Request Form’click
here * |
|
3 Years Personal Tax Returns from
each borrower |
|
Personal Financial statement from
each borrower** |
|
Management Resume from each borrower** |
|
3 Years Business Tax Returns (for
proposed business) |
|
Purchase Agreement / Letter of
Intent |
|
Financial statement for past 24
months including Occupancy and
ADR |
|
Most current STAR Reports*** |
|
Photographs of property*** |
|
Other documents as required by
RCF depending on deal |
*
RCF can take this information from
you over the phone if you desire
** RCF will help you create if needed
*** Preferred if available
If
you would like us to walk you through
the Pre-Application process, simply
fill out a few details about your
loan and we'll contact you- click
here to apply »
|
