Purchasing hotel with SBA 504 loan
Has anyone purchased a hotel with a SBA loan?What was your experience? Any tips?

I am in the process of buying a hotel. Looking to put down 15%. What’s the minimum experiences in hospitality? 
[{"id": "e8w8fna", "text": "What kind of hotel is it? Is it flagged? Are you going to self manage? Is it a 24 unit \u201cmotel\u201d?", "replies": [{"id": "e8w8jbg", "text": "No it\u2019s close to 80 room midrange flagged. We plan on self manage full time. But none of the partners has owned or managed hotels before. We owned and managed plenty of short term corp housing, resort condos, commercial tenants, multi families. ", "replies": [{"id": "e8wkbbt", "text": "As someone in the hotel business that does not sound like a great idea. Hopefully you\u2019ve done a lot of due diligence.", "replies": [{"id": "e8wtzth", "text": "Is it the buying a mid range hotel not a good idea or trying to manage ourselves not a good idea? I would assume it\u2019s the attempt to self manage? I have the concern too. Would love to hear your thoughts. \n\nAs far as DD, we have been evaluating a half dozen hotels and decided to go forward with one of the subjects. We work in asset mgmt so we evaluate assets and manage risks during our day jobs. I did CRE for 15 years now.. My other partner who will be the full time onsite GM had done many yeas of short term rentals. But I hear you, operating a hotel might be an entirely a different thing?", "replies": [{"id": "e8x5k7q", "text": "My point is specifically trying to self-manage. Operating a hotel effectively is an art and a science and people and business spend whole careers finding ways to do it properly.\n\nI\u2019ve been in the hospitality industry for over a decade and would never even attempt to think I could manage a hotel. I will gladly pay a professional manager 3% to run it way better than I can and create a lot more value. NOI is the name of the game. ", "replies": [{"id": "e8x6ngz", "text": "Roger that. Great insights.. Thank you!", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e8w8u6h", "text": "In that case i have No idea to be honest. But you should have a good idea if theyre willing to make the loan within 1-2 conversations with the lender or 2. ", "replies": [{"id": "e8w8vu2", "text": "3 meetings and all docs submitted, they haven\u2019t said no yet ...", "replies": [{"id": "e8w94fd", "text": "Well sounds like you\u2019ve got a good shot! Best of luck! ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e8w8wol", "text": "I'm an attorney and regularly handle hotel transactions with SBA loans. The SBA loans go pretty smooth. Corporate document formalities matter more than they do in other types of transactions. Send me a direct message if you want to discuss more. ", "replies": [], "depth": 1}, {"id": "e8wkcas", "text": "What LTV were you offered? Cap rates are really high for hotels in the north east but I always stayed away because I heard that they were hard to finance \n", "replies": [{"id": "e8wu6ad", "text": "85% with SBA 504. Cap Rate is such a deceiving concept in hotel purchase. I would not rely on it. You have to take their P&amp;L, and do a existing and pro forma calculations yourself to figure it out. ", "replies": [{"id": "e8ww03u", "text": "wow, which region are you in? would you mind referring your broker? that's unheard of here. \n", "replies": [{"id": "e8ww6t8", "text": "It\u2019s a regional bank that works with CDC. Usually it\u2019s always 30% down. But SBA can let you do 85%. They only work with properties located within 50 mile range here. I am on western slope. ", "replies": [{"id": "e8x056n", "text": "I'd be a 65ltv at best. \nSba has dried up out here. That's a crazy great deal. Best of luck to you. \nI am hitting 80ltv with full recourse for my suburban retail. \n", "replies": [{"id": "e8x6qvc", "text": "Omg good to know. Thx", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e94lwbv", "text": "Hi I'm a commercial loan broker. PM me more details if you do not wish to give information on comments.\n\n&amp;#x200B;\n\nWhere is the location (city and state)\n\nPurchase price? \n\nHospitality Experience?\n\nPost Funding Liquidity?\n\nFlagged? Brand? Management Company?\n\n&amp;#x200B;\n\nWe can help structure the deal as well. \n\n&amp;#x200B;\n\nGood Luck!\n\n&amp;#x200B;", "replies": [], "depth": 1}]