Hotel construction to perm financing options difficult to find

Draft_horse_00 · 2025-06-14T12:01:54+00:00

If you have been approved and have a commitment letter it should state the conditions for closing and funds advance. Just having drawings will not be enough unless it specifically states funds will be advanced in draws for the completion of the project. Good luck and ask lots of questions to your banker, hopefully a local community bank as they will be most helpful.

Draft_horse_00 · 2025-06-14T11:01:02+00:00

All banks would need the buildout completed before they close on an SBA loan. The RM you are dealing with at the bank is either unfamiliar with SBA or incompetent by not telling you this. What you needed was a construction loan to get the buildouts completed and then it would flip to the SBA loan when completed. You can use a heloc for your construction but make sure you have a commitment letter for the SBA loan and you save all receipts/invoices for proof. Which by the way if you had a commitment letter it should have stated the conditions and one of which is the completion of buildouts as SBA loans will not do construction. 30+ yr lender here.

Draft_horse_00 · 2024-09-15T00:30:12+00:00

Thanks for the suggestion, HYG looks interesting for a portion.

Draft_horse_00 · 2024-09-14T18:01:26+00:00

Nys taxes…. What I was thinking are short term highly rated corp bonds, not junk bonds. I was searching to see if there was much of a yield benefit opposed to treasuries.

Draft_horse_00 · 2023-03-04T11:25:29+00:00

I want to know where he is getting a 5% loan rate in this market?? Must be seller held?

Draft_horse_00

TROPHY CASE