Expert: Mike Fortunato - 9/16/2010

Question
Hey,

Can you tell how can I find financing for acquiring a hotel
property in the middle east. I mean how does it work? Do
banks lend money to acquire or can I find other methods of
financing it. I would also like to know about LTV and how it
works? please can you guide me on this whole procedure?

Answer
Sorry, but I don't have experience financing international properties. I would imagine you'll either need to speak with a global lender (like Bank of America) or you'll need to explore a loan through local sources in the middle east. With money being so tight now and the general instability of the region, I would expect the loan process to be quite complex. Lenders are generally cautious so their underwriting requirements are rather strict these days. If the loan to value is good (meaning the property is worth much more that the loan requested) then you'll stand a better chance to find funding.