Newbie asking for Help with a Hotel!!!!!! - Posted by Ernesto Prato

Posted by Ernesto Prato on February 08, 2000 at 20:12:54:

Thanks for your response Chris, it makes me laugh for a while.
I am going to review the sites, I will post after that.

Ernesto

Newbie asking for Help with a Hotel!!! - Posted by Ernesto Prato

Posted by Ernesto Prato on February 08, 2000 at 15:27:30:

I am a newbie trying to make my way in the business.
Surfing for information, I found this site and discussion group, in my opinion the best of the net and with a lot of information and day to day lessons.

Actually I am negotiating a 53 room hotel in a high demanding area for an average price per room of $53,000, the average price per room for a working hotel in the area is in the range of $100,000 - $120,000. The property needs some work, but the value could increase in just months with just some repairs.

The place actually run as a apartment-hotel property and is clearing $240,000 yearly, with a Gross Income of $360,000.

If run as a hotel, the Gross Income could be triple with a 75% occupancy (figures for the area).

This is my first property (a little bit high for a newbie), but I think that is a terrific deal.

The seller is asking $2,800,000 and dont want to finance unless the sell price goes to $3,500,000.

I want to structure an offer or find a way that allow me to purchase the property and make all necessary repairs.

Thanking in advance,
Ernesto Prato

Re: Newbie asking for Help with a Hotel!!! - Posted by Natalie

Posted by Natalie on February 09, 2000 at 07:24:39:

Hey Ernesto

Are you Italian? Sei italiano eh?!!

Nat

Re: Newbie asking for Help with a Hotel!!! - Posted by Chris

Posted by Chris on February 08, 2000 at 15:59:25:

Ernesto-

That’s quite a first deal. Are you sure your last name is not Trump? ;-}

This article might help with your calculations.

http://www.creonline.com/mm_28.htm

A few sites that may be of interest-

http://www.ccim.com/

-Best of Luck, Chris

Re: Newbie asking for Help with a Hotel!!! - Posted by Ernesto Prato

Posted by Ernesto Prato on February 09, 2000 at 09:13:55:

Hi Nat,
No, I am not Italian, There’s a city in Italy called Prato, but all my family are from Venezuela, in South America.
Sorry!