Hotel Financing Calculator
A lot of hotel and motel sales include some seller financing: the seller carries a note for part of the price, sometimes behind a bank loan. Use this to see how a deal could work: how much cash you'd get at closing, what the monthly payments look like, when the balloon comes due, and what you'd collect in total.
Change the numbers or start with one of the presets. The starting numbers are an example, not a real deal.
Talk to Steele about structuring this deal
Scoggin Blue, LLC — Hotel Financing Options
Your Deal
Deal summary
1. Bank / SBA loan
2. Seller note
Seller view
Buyer view
Seller note: balance chart and payment schedule
Click a year to see its months.
Talk to Steele about structuring this deal.
Seller carry, bank first plus seller second, balloon timing: we can walk through what fits your sale or purchase and work with your CPA and attorney.
How to read the results
Seller carry (note): the part of the price the seller finances.
Balloon: the balance still owed when the note comes due early. The buyer usually refinances to pay it.
Interest-only: months where the buyer pays only interest, no principal.
DSCR: the hotel's net operating income divided by all loan payments. Lenders look at this.
Cash-on-cash: the buyer's yearly cash flow after loan payments, divided by their down payment.
Questions
Why would a seller carry a note?
It can bring in more buyers, help a deal get financed, and earn the seller interest. The risk is that the buyer stops paying.
Is seller financing common on hotel sales?
On smaller hotels and motels, it comes up often. Whether it makes sense depends on the deal.
Can you help me structure it?
We can walk you through options and work with your CPA and attorney. We don’t give tax or legal advice.
Selling and thinking about carrying a note? Call 575-523-7421 or get a free broker opinion of value.
More: How to sell your hotel · Buying a hotel · Contact