Most of our investments – houses, cars, college tuition – are funded with a mix of equity and debt. Equity investors, including your investment in your own deal, are rewarded with a share of the profits from operating the hotel and a share of the gain from selling the hotel. Debt covers a large part of the cost and is repaid over time. Like any mortgage, debt payments include interest and pay down debt. For your hotel, you will source equity, shop debt alternatives, prepare a financing package to present your project to lenders and investors, and work with attorneys to get everything done well.
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