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         The #1 Proof of funds Provider


                       
Americap Direct Group:
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United Financial Group
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Hotel     Motel    Resort Development
  48 Hour Loan Proposals
  Common Sense Underwriting
  Streamlined Closing Process
Flag Hotel and Non Flag loans
​Apartment loan
Motel  and condo loans
Mobile home park

Hotel Resort Loan domestic and International

VARIOUS  LOAN  FEATURES

  1. Express Business Loans
    Benefits: Competitive bank rates Up to 15-year terms No prepayment penalties Flexible down payment options Funding as quickly as 10 days Loan amounts up to $350,000 No personal or business CRE liens No out-of-pocket expenses
  2. Conventional Loans
    Min Loan Amount $1,000,000 Max LTV 80% Term 3-15 Years Amortization 15-30 Years Refinance or Purchase Full recourse loan assumption closing in 45 days declining prepay
  3. Conduit Loans
    Min Loan Amount $2,000,000 Max LTV 75% Term 5-10 Years Amortization 20-30 Years Properties that fall under the AMD category are—Hotels, Industrial, Office, Multi-family, Medical, Mixed-Use, Retail, and Self-Storage.
  4. SBA Hotel 7a Loan
    Min Loan Amount $1,000,000 Max LTV 85 - 90% Term 10-20 Years Amortization 15-30 Years full recourse no upfront fees
  5. Hotel life insurance loan
    Minimum loan amount $1,000,000 Max LTV: 75% Term: 5-30 years All property type More information
  6. USDA Commercial loan
    USDA Commercial Financing:  We offer a variety of options with these loans for Hotels and Motels.  From 250K to 5 million dollars we are able to go as high as 80% financing and from 5 million dollars to 10 million dollars we are able to go as high as 70% loan to value.
                             Hotel Financing: Loans to Build, Buy, Renovate, or Refinance

Hotel Mortgage Rates start as low as 4.85% (as of 03/16/2018) 

• No upfront fees 
• Simplified application process 
• Up to 90% financing available 
• Terms and amortizations up to 25 years 
• Loans for purchase and refinance, including cash-out 
• 24 hour written pre-approvals with no cost and no obligation

with our top funding partner

CONVENTIONAL HOTEL LOANS:

Non-Recourse / Fixed or Floating Rate / Assumable / 25-30 Year Amortization / Flexible Structure
Americap’s long-standing lender relationships provide non-recourse financing for the acquisition and refinance of hotel properties. We facilitate customized loan structures with low interest rates, longer amortization periods and flexibility. These hotel financing options are designed for cash-flowing and stabilized hotel properties in primary, secondary and tertiary markets. All hotel franchises are considered.
Our capital sources for conventional hotel financing include: domestic and foreign banks, Wall St. conduits, life companies and REIT’s. These loans feature fixed-rate 5,7 and 10-year term loans and are accompanied by 25 or 30-year amortization schedule. The maximum achievable Loan-to-Value (LTV) is 80%, generally offered for acquisitions, where fresh equity is being contributed by the sponsor at closing. The LTV associated with a refinance is typically capped at 80%. Americap’s strength in arranging debt for flagged and boutique operators has provided our clients the freedom of managing and growing their hotel portfolios.
 
HOTEL BRIDGE LOANS:

Benefits of hotel bridge loans: Non-Recourse / Future Funding Facility / Interest-Only / Flexible Loan Structures
Americap originates short to medium term non-recourse bridge loans for the acquisition and redevelopment of existing hotel properties. These loans are ideal for transitional, non-stabilized assets with a value-add component, or segments where a quick closing with certainty of execution is needed. Our hotel bridge loan platforms are available for flagged (franchise) and boutique (independent) hotel operators who are looking for certainty in interest-rate, loan terms and flexibility while undergoing a transition. These transitions include renovation, recapitalization and the ramping up of the occupancy levels at the hotel.
Our experienced loan officers are committed to guiding you through every phase of the bridge loan process. These interim loans carry either a fixed or variable-rate structure and are generally priced over a LIBOR index. Terms range between 12-36 months with options to extend the loan beyond initial maturity date. Virtually all of the bridge loans arranged by Integra are interest-only and based on non-recourse basis.
 
HOTEL CONSTRUCTION LOANS:

Highlights of hotel construction financing:  Up-To 90% LTC / Interest Only / Flexible Draw Schedule / 2-3 Year Term
When it comes to arranging competitive hotel construction loans, we utilize our trusted network of construction lenders that provide speed, execution and certainty. Our relationship lender list is comprised of domestic and foreign banks, insurance companies, as well as debt funds that have the ability to offer non-recourse construction loans for experienced developers with a good track record. Having the right relationship in this arena is critical in getting your hotel project off the ground in a timely manner and properly funded. Aside from the brand and location of the project, sponsorship remains the single most important characteristic in construction financing.
By engaging Integra for your next hotel development project, you will gain access to relationships that we have fostered through the years. Our experts will underwrite the economics of the construction budget and negotiate aggressively on your behalf to achieve a well-structured loan that is customized to your financing needs.
 
HOTEL MEZZANINE FINANCING:

Non-Recourse / Up-To 80% LTV / 5, 7, 10 Year Term / Interest-Only Available
Americap Real Estate Capital arranges mezzanine financing for hotel properties located in primary and secondary markets that feature strong demographics. These loans allow hotel operators to go higher in the capital stack (LTV) and are also considered as subordinate financing to the senior loan. Mezzanine loans are generally ideal for opportunistic purchases to minimize the direct equity contribution that the sponsors would otherwise have to make. These transactions include full-service hotel acquisitions, redevelopment and Property Improvement Plan (PIP) financing. It is typical for a mezzanine loan to be co-terminus with the senior debt. Pricing of these financing vehicles varies and is based on the risk associated with the transaction. Our experienced team can navigate you through the mezzanine financing process and provide you with a customized solution for your next hotel project.
 
DISCOUNTED PAY-OFF (DPO) FINANCING:

Up-To 90% LTV / Fixed or Floating Rate / Non-Recourse / Fast Closing / Interest-Only

It is not uncommon for commercial real estate lenders to offer borrowers an opportunity to pay the lender off at a discount. This practice allows lenders to raise capital to reposition their balance sheet and also offset any regulatory pressure that may exist. It may also reduce exposure in certain real estate markets or help eliminate risk related to underwater real estate assets.

This mechanism is called Discounted Pay-Off.

As a leading commercial advisory firm, Americap offers clients a network of lenders who can provide up to 90% financing of the agreed upon pay-off amount. These arrangements are generally offered to borrowers who can close on the new loan quickly. We understand that it can be challenging to find a new lender to provide the necessary capital to pay off a legacy lender, both because the discounted loan payoff opportunity is likely only available for a short period of time, and also because there is generally institutional reluctance among banks and conventional lenders to help fix what is viewed as a competitor’s problem.
Integra’s valuable lender relationships allow investors to close on new a loan with attractive terms and conditions while meeting the investors desired objectives. The discounted pay-off of the old loan simultaneously reduces the debt burden on borrowers and lowers the monthly payment, generating additional cash flow to the borrower who can reinvest in the growth and expansion of the hotel.
 
SBA HOTEL LOAN PROGRAMS:

Small Business Administration – SBA 7(a) Loan

SBA 7(a) Loan is the most commonly used program for hotel acquisitions and refinance. The SBA 7(a) is ideal for first-time buyers or experienced hoteliers because it offers flexible terms and a low down payment requirement.
Review of the SBA 7(a) hotel loan program
Loan Structure:  Single loan This is a single permanent 25 year fully amortized loan with the SBA offering 75% guarantee to the lender reducing the lender’s risk exposure in financing riskier assets such as hotels specially at higher Loan to Values
Financing Purpose:  Acquisition, Refinance & Construction The 7(a) loans can be used for hotel acquisition, refinance, Property Improvement Plans (PIP), renovations and construction.
Maximum Loan Amount:  Although the maximum loan is 5 million, it is possible to structure commercial loans along side of the 7a loan to increase the loan amount.
Loan to Value (LTV):  Up to 85% For an expansion of business (if one has hotels and is buying another hotel in the same market), the maximum Loan to value is 85%. For a startup hotel (construction project) or purchase of a hotel in a new market, the maximum loan to value is 80%
Minimum DSCR (Debt Service Coverage Ratio):  1.25x Net Operating Income (before depreciation and interest) divided by the annual debt service should yield no less than 1.25x DSCR
Reserves:  None. Lender does not escrow taxes and insurance. In addition, there is no requirement for an FF&E reserve.
Amortization / Term to Maturity:  The 7(a) loans are fully-amortized (aka self-liquidating), 25-year term with a 25-year amortization schedule. Loan Prepayment: 3, 2, 1% The prepayment penalty is declining from 3% the first year, 2% the second year, and 1% the third year and open to prepayment at par thereafter.
Personal guarantee:  This loan requires a personal guarantee from the borrower or any partner with 20% or more ownership.
Assumption:  The 7(a) loans are assumable, however, the proposed buyer must be qualified and appoved.

BENEFITS OF THE 7(a) HOTEL LOANS:

Short prepayment period
High Loan to Value
Assumption and transfer of ownership
FF&E and PIP costs are included
National coverage
Refinance existing government loans
Manageable costs
DRAWBACKS OF THE 7(a) HOTEL LOANS:
High SBA guarantee fee
Only for owner operators
No cash-outs
Loans to be refinanced must be in good standing
Many policies and regulations
Citizenship requirements
Additional collateral may be required to achieve higher leverage



2018
Hotel News
 

HVS Market Pulse: Downtown Chicago, IL

Chicago continues to attract hotel development
to the downtown market, thanks to its proximity to global transportation and well-educated workforce. The installation of Chicago’s 60th crane in 2017 suggests that development is still robust. read full story
In Focus: Singapore, Preparing for a Smart Future 
By Kyu Baek Kim and Hok Yean CHEE

In Focus: Singapore 2018 provides an overview of Singapore’s tourism landscape and hotel market performance, infrastructure development, trends in hotel technology, hotel transactions and investment in 2017 and outlook. 
Cape Town 

By Laura Dutrieux
Since the resignation of Jacob Zuma, South Africa has a better outlook. Thanks to the improving economic situation and the ease of security concerns, tourism is likely to enjoy continued high demand in the next few years. read full story
An Insurance Commercial Real Estate Loan is a mortgage that is provided by a life insurance company or conglomerate of life insurance companies and is secured by a first lien position on the subject property being financed. Most life insurance companies favor the “four food groups,” for their collateral (apartment, office, retail, and industrial properties), but may finance other property types (i.e. hotel or mixed used) on a case-by-case basis. These loans are typically best suited for transactions that have strong borrowers with good credit, newer, well-maintained properties, low leverage, and where the collateral is situated in or around a major MSA.
Underwriting Parameters

For life insurance loans, Lenders have continued and even strengthened their conservative approach toward underwriting the cash flow of the collateral as well as the borrowers and sponsors. As part of the underwriting process, Insurance Companies are simultaneously assessing the risks of default while trying to minimize such risks, so they require detailed borrower and property information. Underwritten cash flows are based on “in place” income and rents rather than anticipated income or further rent escalations and leases are analyzed with closer scrutiny to ensure market rates. Insurance Loans require a more conservative loan to value (LTV) with maximums for most lenders between 60-75%, and debt service coverage ratios (DSCRs) of at least 1.25-1.35x, Lenders are also calculating the anticipated debt yield (net operating income/loan amount) of at least 8-10%. Additionally, Borrowers should expect to have “hard cash” equity invested in their projects, while being able to maintain a reasonable post-closing liquidity. Prior commercial real estate ownership experience is highly desirable.
Loan Features
Term Length and Amortization: The length of term and amortization depends heavily on the institution providing the funding as well as the property type. Terms can vary from 5-30 years with amortizations ranging from 15-30 years. Depending on the way the loan is structured, it may “balloon” at the end of the term, meaning at the loan balance will need to either be refinanced or paid off; otherwise the loan is self-amortizing, meaning that the loan will be fully paid off when the loan matures, so there is no loan balance to pay off (unless the loan is prepaid before it matures).
Recourse:Life insurance loans may be non-recourse, limited recourse, or full recourse loans. If it is non-recourse, the Borrowers are not personally liable for the repayment of the loan and that the collateralized property and its cash flows would be the sole source of repayment of the debt in the event of a default or foreclosure. However, in the event the Borrower actively participates in an activity that could cause harm to the property, Lender, or investors, there could be springing recourse in some limited circumstances; this may include loan fraud, property transfer or subordinate financing without consent of the Lender, voluntary or collusive activity leading to a bankruptcy filing or failure to maintain SPE status, among other such actions. Limited recourse loans makes the sponsors guarantying the loan responsible for a percentage of any shortfall between the loan balance and sales price in the event of default and foreclosure, where the property must be auctioned off as well as any applicable legal and ancillary fees. The carve-outs for the non-recourse loans would also apply. Full recourse loans make the sponsors guarantying the loan responsible for any and all shortfalls between the loan balance and sales price in the event of default and foreclosure as well as any applicable legal and ancillary fees.

AMD can arrange third party reports and provide professional executive summary


Hotel loan cheklist
The need for items #15-17 will vary according to each situation)

1. Most recent trailing 12 month INCOME/EXPENSE STATEMENT in standard Hotel accounting format. Go to FORMS and then HOTEL SPREADSHEET 
2. LAST 3 YEARS’ INCOME/EXPENSE STATEMENTS with monthly and annual figures.
3. SUMMARY OF ALL COMMERCIAL OR DEPARTMENTAL LEASES (if any) showing escalations and expirations, as well as a summary of the terms of any franchise agreements.
4. COMPLETE, DETAILED PHYSICAL DESCRIPTION INCLUDING SQUARE FOOTAGE.
5. IF ACQUISITION, PROVIDE COPY OF FULLY EXECUTED CONTRACT OF SALE.
6. IF REFI, PRICE ORIGINALLY PAID FOR PROPERTY, date of purchase and summary of current financing.
7. PHOTOS, if available, and website information.
8. SITE PLAN OR PROPERTY SURVEY.
9. SUMMARY OF CURRENT FINANCING (refinance only) including:
Current lender
Current principal balance
Current interest rate
Current monthly payment
Due date
Prepayment penalty information
10. CURRENT FINANCIAL STATEMENT for BUSINESS/ENTITY with Balance Sheet.
11. LAST 3 YEAR'S BUSINESS TAX RETURNS.
12. BACKGROUND / BIO FOR EACH PARTNER AND FOR THE OWNERSHIP ENTITY EMPHASIZING HOTEL / HOSPITALITY INDUSTRY / REAL ESTATE EXPERIENCE.
13. BACKROUND / INFORMATION ON MANAGEMENT COMPANY, if separate from ownership.
14. RENOVATION HISTORY FOR AT LEAST 3 YEARS with project descriptions and approximate amounts of each project.
15. CURRENT PERSONAL FINANCIAL STATEMENT(S). (for partners who own 20% or more) (If you do not have a recent accountant prepared financial statement, please click here for a pdf form)
16. LAST 2 YEARS’ PERSONAL TAX RETURNS. (for partners who own 20% or more) 

 


Ten Things to Know About Hotel Financing in 2017

Adequate hotel financing continues to be a major resource for U.S. hoteliers. New construction and renovation projects are typically complex and expensive, so here are ten things you need to know about your funding options and industry trends as we move into 2017.

USDA Loans. Department of Agriculture loans are a viable funding option depending upon property location. They offer competitive interest rates as opposed to conventional rates and allow for higher leverage. Check with your lender to see if you’re eligible.

SBA Loans. Small Business Administration loans continue to be great options for hoteliers that have never had this type of loan and meet the requirements. Some SBA loans offer longer amortization periods and interest only periods that help ease cash flow during the ramp-up period.

Conventional Loans. Conventional capital for new development and construction is likely to continue decreasing, even if you’re a highly experienced and solvent borrower. Due to fears of an overbuilt marketplace, conventional banks will continue to shy away from these projects.

Creative Lending. In some cases, conventional capital can be layered into a comprehensive loan package with other types of loan proceeds. This innovative method is used by some lenders to achieve adequate project funding.

PIP Loans. Property improvement plans can be financed using conventional or SBA capital. These loans allow hoteliers to maintain their liquidity by keeping more capital while completing necessary renovations.

Refinance. With the continuing pullback of CMBS and life companies from the hotel lending market, it’s important to work with a trusted lender who understands the marketplace and various loan structures. Consider a lender who is committed to providing viable refinance options that meet your goals.

Flexibility. Flexible payment options, inclusion of closing costs and sufficient working capital in the final financing package are huge benefits. Not all lenders have the capacity to offer this, but hoteliers should seek these advantages.

Interest Rates. The continued suppression of interest rates could be artificially inflating real estate values which may lead to tightened underwriting standards. Thus, hoteliers may find that financial institutions are lowering loan to value thresholds and increasing minimum debt service coverage standards.
Construction Costs. These will likely continue to rise as they have in the recent past, making accessible financing even more valuable for hoteliers.

Preparedness. Most lenders will require a franchise comfort letter and want your loan terms to match your franchise agreement. Maximize your readiness for financing by obtaining the proper documents and organizing all required information.