An independent motel is a good first venture for anyone looking to get into the hotel and hospitality real estate business. It's also a great nest egg for someone looking to retire peacefully into the management of a small property. Independent motels are typically no frills, low overhead business ventures. You have your utility payments, some basic advertising and marketing expenses, and a mortgage payment. There's not usually a restaurant, so there's no food costs, and liability is low unless you have a pool, in which cases it goes up somewhat.
As simple as the business is, you'll still need a business plan to secure a commercial mortgage to buy an independent motel. The bank will need to know that you can make your payments once they've lent you the money. Prepare a detailed plan of how you plan on doing that. Then, create a back-up plan if the first one doesn't work. Use Murphy's Law as a frame of reference. If everything goes wrong that can go wrong, what will you do then? The more contingency plans you have, the more likely your success will be. It's not being pessimistic. It's being smart.
Once you have a business plan, fill out one application form here at iBank and we'll shop your request around to a bank or lender that can give you the loan or mortgage you need to buy your independent motel. If you are thorough in your preparation and provide as much information as possible on your application, you should receive multiple offers with various terms and interest rates. Wait as long as you can before accepting one of these offers. A better one may come in.
After you pass papers on the motel, you may decide you want to expand it and maybe add a pool if you don't have one. You might want to make some other improvements too, like putting up a new sign or maybe widening the parking lot. You can find the financing to do all of that here at iBank too. If you don't want to go back to your original lender or even if you do, come back and request a construction or development loan using the iBank system. We're your best option to find the money you need for the terms and interest rate you want.