South Dakota · Hotel and motel

Hotel bridge loans in South Dakota

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Hotel and motel bridge loans in South Dakota are short-term, usually interest-only loans of about $1M to $50M, typically 12 to 36 months, from private lenders that size the loan mainly on the property’s value. South Dakota is a both foreclosure state (both processes are used), which shapes how those lenders view their downside. Compare South Dakota lenders’ terms for your deal below.

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Compare South Dakota hotel and motel bridge lenders

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  • Loans from $1M to $50M

Hotel and motel bridge lenders in South Dakota

We publish live lender counts, rate ranges and leverage for hotel and motel bridge loans in South Dakota once at least three lenders in our network with current pricing serve the state. Until then, the comparison above shows every lender that fits your specific deal.

South Dakota at a glance

Foreclosure processBoth
Usual security instrumentMortgage
Sale price disclosurePublic records

Source: South Dakota statutes. Non-disclosure means sale prices are not generally recorded publicly, so appraisers rely more on broker and private data.

What South Dakota means for a bridge lender

South Dakota permits both judicial foreclosure and foreclosure by advertisement, with redemption rights that depend on the process and the mortgage terms.

Whether a lender can use a faster power-of-sale remedy depends on the security instrument and the loan documents. Ask each lender which process its documents use, because it affects how the lender views its downside.

Hotel and motel specifics

Hotel lenders focus on local demand drivers, seasonality and new supply in the specific submarket, and some only lend on flagged hotels or in markets with year-round demand.

How hotel and motel bridge loans are sized

Hotels are business-dependent assets, so asset-based bridge lenders usually lend at lower leverage than they would on stabilized multifamily, often in the 50–65% of as-is value range for straightforward deals. When there is a PIP or renovation budget, many lenders size on loan-to-cost and fund the improvements through a holdback released as work is completed. Appraisals for hotels typically separate the going-concern value (real estate plus business, FF&E and flag) from the real estate alone, and conservative lenders lean on the lower real estate number. A strong flag with a long remaining franchise term generally supports better terms than an independent or off-brand property.

What lenders will ask for

  • Trailing 12-month and year-to-date P&L, plus prior two years
  • STR reports (trailing and competitive set)
  • Franchise agreement and any amendments
  • Property improvement plan (PIP) and contractor bids
  • Management agreement and manager resume
  • Rent roll or room mix summary and any long-term group or lease agreements

Full list and timeline on the hotel bridge loans page.

More in South Dakota

Nearby: North Dakota · Minnesota · Iowa · Nebraska · Wyoming · Montana

Frequently asked questions

How do I find hotel and motel bridge lenders in South Dakota?

Enter your deal on Commercial Bridge Lender Match and we show every asset-based lender in our network that lends on hotel and motel property in South Dakota and whose rules fit your numbers, with max loan, rate, points, days to close and total cost side by side. It’s free and there’s no credit pull.

Is South Dakota a judicial or non-judicial foreclosure state?

South Dakota foreclosures are both judicial and non-judicial, depending on the loan documents. The usual security instrument is a mortgage. Which process applies depends on the loan documents. See the South Dakota statutes.

Can I get a hotel and motel bridge loan in South Dakota without a credit check?

Some asset-based lenders size the loan on the property and don’t pull credit, usually at lower leverage. Tick No credit check when you compare and you’ll see only those lenders. See no-credit-check bridge loans.

How fast can a hotel and motel bridge loan close in South Dakota?

On a clean deal with title and valuation ready, some lenders close in 7 to 14 days; third-party reports, estoppels and complex title can push it to 21 to 30 days. You choose the close speed and see only lenders that can meet it.

Do commercial bridge lenders need a license in South Dakota?

Licensing for business-purpose commercial lending varies by state and by how a lender is structured. Check with the South Dakota financial regulator; the Conference of State Bank Supervisors lists every state agency. Lenders on our network confirm in their agreement that they hold every license their loans require.

Sources

General information for business-purpose investors, not legal, tax or financial advice.