If you're planning on borrowing over $2,000,000 to build or buy a larger hotel/motel, interest rates may be a little better, although not much. Interest rate lows can be more favorable by up to a half percentage point, while to current ceiling is still hovering around 8%. With a larger hotel loan comes a longer loan term, usually 20 to 25 years. One boon of a larger loan is that most institutions offer limited recourse in event of a default.

Meeting hotel loan requirements can be difficult, after all, this is unlike any other kind of real estate loan and as such has its own rules, terms, and procedures. If you think hospitality business may be for you, make sure you choose a lender who will take type to answer questions to your satisfaction. With how market is these days, there are plenty of lenders out there competing for your business. Take your time and choose carefully from several loan products they offer; if you're not satisfied, move on. The hotel business can be both challenging and rewarding. Depending on your location, service, and financing, it can be a great way to build long-term wealth.

Managing Subcontractors; You thought deciding who to hire as your subcontractor was difficult, try managing them! This is where most of stress and “sweat equity” occurs. I have been a construction project manager for 15+ years and honestly, every time I am assigned a new project fear of unknown working relationships with each of subs is a major concern. I feel your pain! To help you in your management, have a schedule ready during bidding war between contractors. Have this presented at time you present construction drawings. In fact, have three schedules! What this will generate is three different prices from each contractor. Use this as part of your evaluation as mentioned in previous paragraph. Your long schedule, medium schedule and short schedule will generate different responses. You want this information up front so that when it comes time to sign a contact with subs, you can put in clauses that if they do not hold schedule there are financial burdens placed on them. This will protect you from mismanagement on their part. Typical content found in a residential building contract can be found at following link http://www.b4ubuild.com/resources/contract/index.shtml

After all schedules and contracts are agreed upon, you become more than customer, now you are boss. Everyday you need to communicate with subs and get an updated detailed report on what, where, when, how and why they are on or off schedule. Manage project by schedule. Keep in mind that schedule will change if you decide to change your scope of work by issuing change orders (example: changing cupboard or cabinet size, flooring, or appliance). Keep in mind that during this time, this is a small business and your profit is represented by how close you come to your original agreed upon costs associated with schedule after contract signing. We could talk about management all day long. In fact there are training courses on this subject that cost thousands of dollars. Hopefully this bit of information will get you on right track and help make a smooth transition from concept to actually building your dream home. Remember this rule of thumb, more you prepare better you will be when handling bumps in road. Gathering information prior to needing it will actually save you more money, time and stress than you can probably calculate.

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