Category Archives: Case Studies

Multiple Closings: Two in One Day

Multiple closings don’t happen every day at GRP. But they happened last week. GRP Capital’s  Senior Associate Ryan Dumas and our entire team were able to close two loans for two very different clients.

Ryan Dumas excitedly noted, “I was very happy to close two loans in one day for two very different sets of clients. It was the culmination of a lot of work. Our clients will benefit from permanent financing, featuring low interest rates. I loved getting to know these clients and helping them fund their dreams. They are all skillful entrepreneurs and will be maximizing the profit potential of these properties very quickly.”

Multiple Closings for a Variety of Clients:

• Small and Large Properties. Both of these properties had a large number of guest rooms (130 for one and 171 for the other). But we also recently  closed an intimate Bed & Breakfast. Our knowledge of the varieties of properties and how they function allow us to give expert advice to our clients and work in tandem with our lending partners.

• Geographic Diversity? Yes! One of these properties was in Florida and the other in Maryland. We have closed loans in most of the United States, working with a national team of lenders from coast to coast and all points in between.

•  Franchise vs. Independent:  One of these loans was affiliated with a franchise and the other was an independent hotel. We have relationships with franchise networks and know all of the steps that have to be taken to close a loan in concert with the franchise. We also know how to present a loan to a lender for an independent property, even one that doesn’t participate in STR (Smith Travel) reporting.

Loan Structure:

•  Purchase and Refinance: Both purchases and refinances require different processes, but our clients need our expertise in both types of loans. Purchases are typically more complex loans, involving sellers, too. But all loans require us and the lenders to understand the clients’ business goals. Multiple closings happen when we at GRP successfully match our clients with appropriate funding sources. We believe we can match our clients with lenders who believe in our clients’ unique visions.

• Single Owner vs. Multiple Partners: These two loans also had different client makeup. One loan had a single owner while the other loan featured multiple partners. Coordinating with all stakeholders is integral to closing the loan successfully. Streamlined communication and a strong loan processing department allow us to handle multiple closings.

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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Fast Closing for Hotel Purchase in Colorado

GRP Capital is pleased to announce that Managing Director  Krishan Patel executed a fast closing on a hotel purchase loan for our Colorado client.  

GRP Capital secured a fully amortized, 25-year permanent loan with historically low interest rates. Because the previous note on this property was a Small Business Administration (SBA) 504 loan, time was of the essence. SBA 504 notes can only be paid off on one day per month (typically the third Thursday). We knew a fast closure was critical and were able to close 21 days from LOI to funding. A fast closing also ensured that the this loan was eligible for SBA’s 6-month subsidy. As a result, our clients have no payments for the first six months of the loan. 

Patel remarked, “We know these clients very well, as we recently closed another loan for them. When we realized we would only have 21 days to close this loan, we knew we had to work as partners. We used as many of the previous documents we had gathered from our previous work with the client. For their part, our clients were incredibly organized and responsive, turning in documents and information quickly. As a result, the lender was also responsive and quick-moving. We were thrilled that we could accomplish this fast closing, saving our clients six months of loan payments.” 

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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Smooth Path to Closing in Oklahoma

How do you get a smooth path to closing? Take a motivated seller, an organized buyer, an enthusiastic senior associate and add in our loan processor. What’s the result? Another quick closing is in the books.

GRP Capital Senior Associate Ryan Dumas was able to shepherd this hotel loan from letter of intent (LOI) to closing in just 41 days. Everybody involved in the sale did their part to make sure we had a smooth path to closing.

Submitting Needed Documents:

• The seller provided the documents necessary (typically financials and hotel statistics and any applicable leases).

• The buyer had to prove that he or she has an appropriate debt coverage. Our clients have to demonstrate the ability to contribute to the equity. They also have to be able to pay for business expenses that arise. In addition, the lender wants to know the the buyer has the appropriate management experience to supervise the operation of the new business.

• The lender also needs the appropriate documents about the business formation and licenses.

Submitting documents quickly allows the lender to underwrite the file quickly. Once the underwriter is satisfied with the documents, they don’t need to  come back for more supporting documents and more updates. This keeps the document requests manageable for everybody.

What are Equity Verification Documents?

• Bank statements

• Stock and bond fund statements and/or money market accounts 

• Closing documents/settlement statements  from previously sold property

GRP Capital secured a fully amortized, 25-year permanent loan. As a result, our client was able to take advantage of continued low interest rates. 

Our client was thrilled with the smooth closing. He has solid plans to increase profitability and is ready to follow his plan.

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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Low Interest Loan for LA Hotel

GRP Capital is proud to announce another loan closing, taking advantage of historically low interest rates.  Senior Associate Ryan Dumas and his team worked with the borrower and the lender to refinance this independent hotel. The borrower was able to refinance a higher interest existing loan. In addition, our client obtained funding in order to embark on some needed renovation. 

Our client previously had a higher interest private loan that she was ready to refinance. Her new 25 year permanent loan product provided manageable, stable financing with sustainable payments for the life of the loan. Refinancing allowed our client to decrease her monthly mortgage payments. Even better, our client immediately utilized the project improvement plan (PIP) monies to complete deferred maintenance and updated furnishings.  

Independent hotels can still receive financing in these uncertain teams, even in California. Our job at GRP Capital is to advocate for our clients. We work to demonstrate the strong management skills of the property owner (or management team). In addition, we partner with our clients to organize their files in order to emphasize the true profit potential of their business. We understand that each property is unique and we pride ourselves in getting to know our clients, their enterprises, and their distinct financing needs. Finding the right loan product and the appropriate lender requires research on our part. That research entails learning about our clients as entrepreneurs. As a result, we secure options for them that will best serve their business needs for growth, stability or even liquidity.

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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Hotel Refinance in Alabama

Another successful refinance! GRP Capital’s  Senior Associate Ryan Dumas and its processing team were able to close another SBA loan for our clients. We accomplished this by matching our client with a hospitality lender in our network. This allowed our client to move into a stabilized, permanent loan product and offer payment relief for the months ahead.    

Our processing team worked closely with Ryan and our clients. We managed document flow, helped interface with the lender and coordinated with counsel and insurance agents. Ryan Dumas stated, “I really wanted to help these clients. They are experienced business owners and their property is extremely successful, even through the country’s rolling shutdowns. They just needed for GRP Capital to help them secure hospitality financing in an industry where banks can be hesitant to lend. I was glad to see their refinance loan close, so they can become even more profitable in the future.”

Lending During This Economic Climate:

GRP Capital secured a fully amortized, 25-year permanent SBA 7a loan. The buyers were able to take advantage of continued low interest rates. Despite the instability surrounding hospitality assets, a hotel can be refinanced under the right conditions. We are regularly in contact with our lender partners to determine who is enthusiastic about lending in the hospitality industry. A refinance might be exactly what you need to secure stability and improve cash flow.

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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Want to know more about other business opportunities? 

Bed & Breakfast in North Florida: Another Loan Closed

GRP Capital is pleased to announce the successful closing of a Bed & Breakfast in north Florida. Our client worked diligently with Business Associate Vijal Suthar and our entire team to close and fund this loan. Our client knows this local Florida market well and felt ready to take on this new business venture. The loan provided affordable, stable financing. As a result, our client was also able to take advantage of new components of the latest Small Business Administration stimulus package. Currently, SBA loans allow several months of no payments (or reduced payments for larger mortgages) as well as waived SBA guaranty fees.

Every loan we shepherd towards closing is unique and this property was special. Our client saw the business potential of a small bed and breakfast in the heart of a bustling area. She was ready to expand her business portfolio and bring her growing management skills to this new project. In order to help her, we found a lender who was supportive of the concept of boutique inns, lodges and bed & breakfasts. Importantly, each of these properties offer their guests smaller, more intimate hospitality experiences. In addition, a boutique inn can be very nimble under changing economic circumstances.

Vijal Suthar adds her thoughts on this loan, stating, “Certain sectors of the hospitality industry continue to be profitable. Boutique Inns and Lodges are one of these sectors. It can be a bumpy road to take a loan from origination to closing. Therefore, I was particularly pleased that the client put her trust in us to close this deal on her behalf. I feel honored to have helped her realize her dreams. Ultimately, to see her appreciation and excitement on taking ownership of her new property makes all our efforts worthwhile.”

Closing a Loan in the Current Economy:

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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Want to know more about other business opportunities? 

Hotel Refinance in Michigan Closes

GRP Capital is pleased to close another hotel refinance loan. Our clients in metro Detroit had solid cash flow, but needed to move into a more affordable commercial loan. The borrowers partnered with Business Associate Vijal Suthar and our entire team to close and fund this loan.

Sometimes our clients hit roadblocks. In this instance, our clients needed to have a more extensive environmental assessment as as result of a nearby gas station. Our clients’ prior lender had neglected to investigate the environmental aspect of their site. This sometimes occurs in private loans. However, to move into more stable, lower cost loans, we had to help our clients remedy this situation.  We were assertive and our clients were patient and we made it to closing!

This hotel refinance allows our clients to take advantage of new components of the latest Small Business Administration stimulus package. A hotel refinance is particularly attractive in this economic climate. Refinancing your higher interest loan or a loan that has an upcoming balloon payment leads to  improved cash flow and stable payments for you.

Vijal Suthar was pleased to close this loan. She noted, “Sometimes we discover that a previous lender hasn’t conducted due diligence. In this loan, we encountered some hiccups, but we were able to take corrective steps in overcoming these issues to get the loan to closing.”

Closing a Loan in the Current Economy:

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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Want to know more about other business opportunities? 

Independent Hotel in North Carolina Refinanced

GRP Capital was proud to close the refinance of an independent hotel in North Carolina.

GRP Capital President Rick Patel and our entire team worked with this small business owner to secure a conventional loan at competitive rates. This loan allowed our client to have improved cash flow with stable financing. 

Our team worked closely with the client, his family members who helped with accounting and even his previous lender to obtain all of the documents needed to close the loan. Rick Patel remarked, “This client is our bread and butter: a small businessman who is running an independent hotel. We worked hard to demonstrate the revenue potential of the hotel. In addition, we guided the client and his accountant on coding and categorization, so that his financial reporting more closely matched standard hospitality accounting reports. I really believe in supporting the client as a business person and not just as a borrower. We want our clients to be stronger entrepreneurs at the end of a closing, and not just the recipient of a new loan.”

Unique Challenges of Independent Hotels:

• Marketing the Property. Independent hotel operators have tremendous freedom in marketing their property. However, they also bear all of the costs for creation and implementation of marketing plans.

• Comparing Yourself to other competitors in the marketplace:  Most independent hotels do not participate in STR reporting. As a result, it can can be difficult to ascertain how w well their property is doing. Instead, independent hoteliers have to constantly monitor their pricing and compare it to their competitors.

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. Whether you are looking to refinance or purchase, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

First Time Hotel Owner buys Georgia Property

GRP Capital announces a brand new loan for a first time hotel owner. Our Georgia client is a first time buyer and now owns a 75 unit franchised hotel.

Senior Associate Ryan Dumas worked closely with our client in order to close this loan. Ryan stated, “I love to meet up-and-coming entrepreneurs. Our client just needed a little bit of encouragement to overcome the challenges of closing on a new business loan. We helped him choose the best loan for his needs. We were even able to accommodate him and his wife, so she could sign documents early in order to deal with a family emergency.” 

Our client was so pleased to close his loan, he told us, “Thank you so much for all the hard work…we sure had some hiccups but nothing major. Hope to work with you guys again pretty soon on an even bigger project…y’all about to get lot of referrals.”

Are You Ready to be a First Time Hotel Owner? 

• Assess if You Can Afford It: Have you built up capital to purchase the business, have some working capital and take on the operations?

• Is the hotel a good fit for you? Are you ready to be onsite frequently in the near term after change of ownership? Do you know the market fairly well? What do you know about the challenges of this hotel and its strengths?

• What is the revenue potential of the hotel? Is the hotel currently running well and bringing in sufficient revenue? If the hotel needs operational changes, do you have feasible plans to turn the hotel around and enough reserves?

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. Whether you are looking to refinance or purchase, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Florida Liquor Store Buys New Building

GRP Capital is proud to announce a new site for our central Florida liquor store owner. We encourage entrepreneurs who enjoy the challenge to own and operate liquor stores. Lenders are still keen on funding a liquor store purchase. The liquor store industry has continued to remain pandemic-proof. Furthermore, the this Florida liquor store has been profitable even during inflationary times.

Our client was renting the location for his successful liquor store. However, the future of the building was uncertain, but it appeared his rent could increase exponentially. Our client wanted to stabilize his payments and decided the best way was to be an owner and not a renter. He found a nearby property that needed minimal renovations and had sufficient parking. He also worked closely with his attorney and the local zoning commission to make the site change.

GRP Capital was has now closed several liquor stores. GRP Capital President Rick Patel states, “Our team including our processor Keren Alpert, understands the liquor store business very well. We were able to work smoothly with the lender and the client so that he could move into a location that will be even more profitable for him. This conventional loan is competitive rate-wise and offers him stable payments for decades, without having to worry about building owners.”

Previous liquor store closings: 

• Georgia liquor store:  GRP Capital knew this property well, because we had represented the seller when he bought a few years ago.

• Pennsylvania liquor store: This closing was right in the middle of the toughest part of the pandemic. We were very pleased to demonstrate that loans were still closing!

• Arizona liquor store: Our clients have an incredible business not too far from a large university. Their business is well known and they run it extremely well. We were happy to provide a stable, low interest rate loan that improved their bottom line.

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. If you are considering becoming a first-time (or second or third time!) buyer or wish to refinance an existing loan, we can assist you.