Lubbock

The collateral for this loan is 62 room hotel in Andrews, TX which is about 100 miles south of Lubbock, TX. The current hotel sits on 3.57 acres of land that is currently being operated under the “Oakwood Suites” umbrella. In talking with numerous hotel operators, the borrower is close to signing a Property Improvement Plan (PIP) to convert the branding of the hotel into a more well-known franchise to increase the occupancy, and ultimately increase its value. In a more formalized way, the PIP tells the property owner what needs to be changed to the property in order for the new operator to begin operations. It is an exhaustive list covering all items imaginable from large scale deferred maintenance items all the way down to the mundane such as thread counts on sheets or number of cups in a room. The borrower anticipates completing the PIP in five months and then will look to sell the asset when the property is in position to command a higher price. Loan Amount: $2,800,000 Yield:  10% interest is paid monthly in arrears with payments due on the 1st of each month with a 10- day grace period. *For investments equal to or