New Financing Options for Mom and Pop Hotels/Motels

MELBOURNE, Fla. - May 6, 2013 - PRLog -- For many years independently owned hospitality properties have been looked upon as undesirable by major and local lending institutions. Dating back to the Savings and Loan debacle of the late 1980's small family owned Hotel and Motel properties have been disadvantaged by an intransigent attitude from lenders.

The good news is that there is a new brand of lenders that are now showing willingness to support there affectionately named “Mom and Pop” owners. The underlying business still needs to be fundamentally viable and display an acceptable DSCR (Debt Service Coverage Ratio) together with acceptable personal FICO scores. Now there is a light at the end of the tunnel for these disadvantaged but hard working owners.

Many of these businesses have gone out of business in years gone by after being unsuccessful in obtaining funding to replace a ballooning or expiring mortgage. Traditionally new owners were reduced to taking previous owner financing at extremely high rates from an owner that didn't want to hold a mortgage note but realized it was the only way to move the property on to a new owner.

Today there are programs available for qualifying properties that will grant a 25 year fixed rate mortgage that is assumable at rates as low as 5.5%. If the strength of the appraisal allows then additional working capital can also be funded, allowing property refurbishment and/or equipment renewal.

Even less qualified properties have options with creative lenders now willing to consider, commitment, entrepreneurial savvy and mitigating circumstances to provide a solution to a difficult position. Obviously rates and terms may be considerably less appealing than that quoted above but will allow owners to move forward and avert foreclosure due to an expiring mortgage note.

Www.fundingsolved.com is a one stop facility for all types of funding for commercial properties having access to numerous funding facilities at decision maker levels rather than at sales office level, this leads to fast decisions and fast closing times. Contact Funding Solved today for assistance with your hospitality funding problems. Telephone Andrew Richards 321 432 7717 or email andrew@fundingsolved.com