In
preparing for financing of your hotel, you will need to put together a
financial package by following these three steps:
STEP
1: Each guarantor has to fill out the following forms
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| Note: Click on the icons to open the
the forms
- You may save them on your computer then fill out the forms typing in
the information and then print the forms or print first and fill out
with pen. You may then fax or if possible scan and email them. |
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1) Form 413 - Personal Financial Statement
Note:
- The LIABILITIES must be at least equal to your
balances in your credit report
- Provide bank statements supporting your liquid assets
(Checking, Savings, IRA, Stock account, etc.)
- In community states such as CA, spouse has to sign
the form
- In Section 4 of this form (Real Estate Owned), only
include real
estate that is owned individually under your name - Any real estate
owned under and entity name should be listed in the form REO below
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2) Form REO (Real Estate Owned)
Note: Use this form to list all properties that are owned under an
entity such as an LLC or a Corporation and in which the guarantor has
20% or more ownership interest
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3) Form 912 - Statement of Personal History
Note: Just fill out the following fields:
- Name of the Applicant (Firm) – This is the Entity name
- Item 1: Your name
- Item 3: Date of Birth
- Item 4: Place of Birth
- Item 5: Citizenship
- Item 6: Current and previous address and effective
dates
- Items 7,8,9 checkboxes
- Signature, Title, and Date fields
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4) Business Debt Schedule
Note: Use one form per each business owned by the guarantor
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5) PBA Form - Personal Budget Analysis
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6) Management Resume Form
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7) 4506 Form - IRS Transcript Request
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STEP
2: Each guarantor has to provide the following personal financial
documents
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8) Borrowers' Credit Profile
Note: Credit reports will be pulled by the lender after each partner
has signed an authorization form. However, to start the process, a
consumer credit profile is needed for each guarantor and may be
obtained free at the Annual Credit Report web site. A FICO score should
be obtained from Equifax (There may be minimal charge for the Equifax
score)
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9) Borrowers' Personal Tax Returns
Note: All guarantors need to provide three years of personal Federal
tax return |
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10) Financials of Other Businesses or Hotels
For each hotel or business in which guarantor has 20% or more
partnership, the guarantor has to provide the following information:
Three year tax return for each business
Prior year K1s for each business
This year’s Interim profit and loss statement and balance sheet |
STEP
3: Provide the following information on the subject hotel to be financed
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11)
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Hotel’s
three years of tax returns
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12)
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Interim financial statements- The
profit and loss has to be within 60 days. For refinancing, a balance
sheet of the same cut off date is required
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13)
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Purchase contract if this is an
acquisition- Escrow information including escrow and title
officer’s contact information is required as well
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14)
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Current promissory note if this is a
refinance
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15)
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Last mortgage statement of the hotel if
this is a refinance
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16)
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Land lease contracts
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17)
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Franchise agreement or the franchise
application/approval-
If an acquisition, a copy of the franchisor's conditional acceptance of
the franchise application, If a refinance, a copy of the franchise
agreement
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18)
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Latest franchise inspection quality report
and the PIP-
In case of a franchise hotel, the latest inspection report, the PIP,
and reliable cost estimate of the PIP. In case of a refinance where the
PIP cost is included in the new loan, a formal cost breakdown and
proposals from vendors is required. Additionally, if the PIP involves
construction, then an itemized bid from a contractor is needed.
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19)
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Few current exterior and interior photos of
the hotel
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20)
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Customer segmentation- Percentage
occupancy of Transit, business, contracts, government, colleges,
tourism, etc.
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21)
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Major industry or the attraction-
Is there a change in the local economy such as industries leaving or
coming to the area, new tourist attractions being developed, etc.
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22)
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List of hotels in direct competition with
the subject hotel
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23)
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Are there new hotels being built or are
planned to be built in the area?
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24)
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Hotel specifications:
- Address - Is the property a corner lot?
- Number of rooms?
- sqft of the hotel?
- Lot size of the lot size of the hotel - NOTE: If the
lot consists of a number of parcels and the size of each parcel?
- Number of buildings?
- Number of floors (if more than one building, number
of floors per building)?
- Hotel has elevators?
- Hotel has canopy?
- Corridors (Exterior or Interior)?
- Any survey available?
- Any latest appraisal or environmental report
available?
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