Sometimes the most important element of a loan is an accelerated closing. This was the case with our Wisconsin client. They had big plans for this property, including reflagging it. But they had an existing note that was maturing quickly. This created a very fast timeframe. They needed to refinance quickly.
We at GRP Capital know the strengths and challenges of our lending partners. Our team reaches out to certain lenders for conventional financing, others for SBA financing and still others for bridge loans. As a result, we have enough experience to be able to say with confidence which lenders will offer the most competitive rates or even the most beneficial loan structures. In this case, we recommended a lending partner to our clients, chiefly because we know they could close a loan quickly under pressure.
GRP Capital Senior Business Associate Ryan Dumas stated, “This group of partners had a very strong business plan. They were reflagging this hotel and renovating in order to do this. These changes are going to enhance the profitability of the property. They just needed a really fast closing and some working capital to pay for their PIP. I was very pleased that we could help them out. I know they will be successful with the changes at theirhotel.”
Why Would You Need a Fast Closing?
• Maturing Note: ration of previous mortgages creates some hard deadlines. Be aware of when all of your business loans come due, so you can make decisions without rushing.
• Seller time frame: Particularly with underperforming properties, the seller may want to close quickly to avoid upcoming bills including mortgage and property tax payments. It may or may not be possible to accommodate the seller. We encourage extensions to Property Sales Agreements when the seller demands are not feasible.
• Need for Immediate Management Change: Management matters. When new owners bring new ideas and new management skills, they can often turn a property around or make it more profitable. A fast closing allows for the management to take over and begin refining and correcting operations.
• Locking in an Interest Rate: Interest rates fluctuate. Clients are wise to try to settle and close with a payment that they can best afford.
Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. We can match our clients with a lender for purchases, refinances, construction and other business expansions. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.