The Prequalified Buyer™ evaluation and designation provide Aspiring Innkeepers a credible way to quantify how much purchasing power they really have as it relates to identifying hospitality properties that best fit their financial qualifications and professional or personal objectives.

A Prequalified Buyer™ designation identifies a person or persons as having submitted, the required proofs and documentation for verification and analysis; prior to identifying or contracting to purchase a specific hospitality property. Prequalified Buyer™ designation, confirms that all parties to an acquisition who will have an interest greater than 20% complete an application including, identification i.e. Driver License/s,

Financial Statement/s, Account Statements, Credit Authorization, Personal Debt Schedule, three

(3) most recent years Federal Tax Returns, Pay Stubs for Current Year, and Resumes for all partners.

The Prequalified Buyer’s purchasing power and limitations are determined prior to requesting the financial data from the seller. Realtors and sellers alike are more receptive to investing time with a Prequalified Buyer™, because their qualifications and assets have been independently verified. A Prequalified Buyer™ negotiates with confidence knowing they have the capacity to consummate a transaction.

Prequalification Check List

List of items required to begin the Buyer Prequalification Certification Process:

Prequalification vs. Preapproval

A Preapproval differs from Prequalification in commercial lending, in that the “Preapproval” is issued after a preliminary underwriting determination has been made. The buyer’s qualifications and the data from the commercial property are combined to assess the risks versus the merits of the loan application.

Financial records on the business/property being acquired will be needed to determine that the Debt Service Coverage Ratio (DSCR) will comply with general underwriting guidelines after items such as depreciation, officer’s salaries, mortgage interest and certain non-re-occurring expenses are added back to the net profit/loss. A Preapproval will have issued conditioned upon certain events and due diligence has been completed. After all data from the borrower’s and the subject property is compiled and analyzed by one of our Commercial Loan Underwriters.

The following items will be required on the subject property before a Preliminary Preapproval can be issued:

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