4.5.13: AAHOA Show an Enormous Success

The ValueXpress booth was bustling with activity on March 28-29, 2013 at the annual Asian American Hotel Owners (AAHOA) Trade Show in Houston, TX.   Over 3,000 attendees visited the trade show at the George R. Brown Convention Center.

“This year, the product of the day was CMBS conduit loans.  With hotel performance improving at a rapid pace, and CMBS conduit loans the only realistic program with unrestricted cash out, interest was very high,” said Michael D. Sneden, Executive Vice President at ValueXpress.  “We were sizing loans on the spot, and potential borrowers were amazed at the possible cash proceeds in their pocket after paying off existing debt.”

“My clients were also impressed by the very low interest rates for CMBS conduit loans,” noted Jay Bhatka, a Senior Loan Originator covering the southeast U.S. market that includes Texas.  “With rates in the 4.5%-4.75% area, my clients can take cash out and yet have the same payment because of the lower interest rate and longer 25-year amortization schedule.”

“Most of the clients use the cash out proceeds to grow their businesses by building or buying other hotel assets.  One of my clients was able to obtain a construction loan from a bank requiring 50% equity by using the cash-out proceeds from a CMBS conduit loan as the equity contribution for a new hotel project,” Bhatka said.

This entry was posted in AAHOA, CMBS Conduit Loans, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, The Banker's Mortgage Conduit, Valuexpress and tagged , , , , , , . Bookmark the permalink.

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