The Client
Our client was referred to by a developer in Houston, Texas who we worked with previously. The client is a Canadian real estate investment company looking to purchase a hotel as well as in Houston, Texas. Due to the covid-19 impact on the hotel industry, the borrower was able to secure a very competitive price on a non-flagged hotel property in the U.S.
How We Helped
Due to Covid-19, almost all lenders are on pause with hospitality finance requests, due to the inherent risk of the hotel industry and travel being shut down/limited around the world.
Our client was able to utilize a Bridge Loan to secure the purchase of the property. Once the Covid situation improves and travel opens back up, the borrower will refinance with a traditional longer term commercial loan. With the discounted purchase price, the more costly bridge loan for a few years made sense. (Also see Can a Canadian Buy a House in the USA?)
Loan Details
| Nationality | Property Value | Loan Amount | LTV | Rate |
| Canada-based Investment Company | $3,100,000 | $1,550,000 | 50% | 8.99% |
| Term | State | Property Type | Purpose | Loan Type |
| 2 years with possible extensions | Houston, Texas | Hotel – Non-Flagged | Purchase | Bridge |
| Nationality | Canada-based Investment |
| Property Value | $3,100,000 |
| Loan Amount | $1,550,000 |
| LTV | 50% |
| Rate | 8.99% |
| Term | 2 years with possible extensions |
| State | Houston, Texas |
| Property Type | Hotel – Non-Flagged |
| Purpose | Purchase |
| Loan Type | Bridge |
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