Test Motel, 12 keys (sample)
CommercialWraparoundVerified sellerSample88% seller-financedSavannah, GA 31401
Description
Sample hospitality deal, which is the kind of story CreativeDeals expects to see from independent owners. Twelve imaginary keys. The wrap sits on top of a fictional existing loan. Read the due-on-sale disclosure. No inn is for sale.
Fictional roadside motel on a wraparound note.
| Revenue (sample) | SDE / NOI (sample) | Est. DSCR |
|---|---|---|
| $480,000 | $145,000 | 1.61x |
Quick payment estimate
Amount financed$1,050,000
Est. monthly: $6,926.53 · Balloon: $807,830.83 · DSCR: 1.61x
Estimate only, using the standard amortizing-loan formula. Not a quote and not financial advice.
Open full calculatorsDeal-type risk: Wraparound (due-on-sale risk)
A wrap is a new seller note that 'wraps' an existing loan. The buyer pays the seller, and the seller is supposed to keep paying the underlying loan.
- Due-on-sale risk: transferring title, or entering a wrap, can let the existing lender call the underlying loan due. That risk is especially serious on conventional loans.
- The buyer can lose the property if the seller does not pay the underlying loan, even when the buyer paid the seller on time. Third-party servicing is a common way people try to reduce that risk. This site does not service loans.
- The wrap payment, the underlying payment, and what happens in a default all have to be in writing.
- Have an attorney licensed in the property's state review the wrap before anyone signs. This site does not arrange the loan terms.
This is not legal, tax, or financial advice. It describes common risks. It is not a review of your papers. Have your own licensed attorney read the documents before anyone signs or sends money.