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A potential first-time motel owner in need of guidance for financing

recently have decided to follow through with my dream of getting in the hotel business. I figure that by starting out small, I can learn the ropes and eventually work my way up to owning a franchise hotel or something along those lines. My problem is I do not really have any idea where to start. I am not in the greatest financial position personally, not with horrible credit (credit score around 600), just not with a lot of income(full-time student transitioning into business owner) or liquid assets (looking to invest about 5k down). I am looking for motels in the range of 150k-350k because of that reason. I figure it would be easier to find financing that way. Does anyone have any suggestions on where I begin once I find my ideal property? In my financial situation would banks be hesitant to give me a loan? Are there options through the government that I could utilize? I thank everyone in advance for their help.

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Answers (3)
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I'd like to speak with you. How can we contact you?

Sep 29, 2009
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5,000 dollars to buy any business is not even considered. sba loan cost 2 percent of loan amount as a guarntee fee. appraisal can cost about 5,000. closing cost is abot 5,000 dollars. utility services such as water, electricity,gas,cable, phone require deposites for commercia acounts. you'll need 5,000 for that. you'll need 5,000 in hand to operate business. 30 percent down payment is required.

Sep 22, 2009
Brian Butler
Butler Consultants LLC
Owner / Lead Financial Modeler
Washington County, OR

I always think people should have a business plan or at least financial projections. You can either do it yourself with something like business plan pro or you can contact a consultant to have them help you write it. I have included a sample template for a business plan below.

Sep 21, 2009

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