Limited Denial of Participation

What is a Good Cap Rate for a Hotel?

What is a Good Cap Rate for a Hotel?

In general, there is no one good cap rate for a hotel investment. A good cap for a hotel varies based on asset quality, asset location, and industry metrics, such as RevPar (revenue per available room) and ADR (average daily rate). Hotels generally offer the highest cap rates of any asset class, with cap rates typically varying from 7.5% to 10.5% depending on asset type and market conditions.

What is the Minimum Debt Yield for a Commercial Loan? 

What is the Minimum Debt Yield for a Commercial Loan? 

In general, the minimum debt yield for a commercial real estate loan is around 10%. Some lenders, however, place their minimum debt yield requirements as low as 8%, while others require debt yields of up to 12%.

What are the Underwriting Guidelines for FHA Multifamily Loans?

What are the Underwriting Guidelines for FHA Multifamily Loans?

The underwriting guidelines for FHA multifamily loans are perhaps the strictest on the market today, excluding perhaps underwriting guidelines from life company lenders. HUD and lenders require a wide scope of reports, including appraisals, market studies, environmental reports, and much, much more.