Category Archives: Hospitality

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? 

Accelerated Closing in Wisconsin

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.

Shifting from Leasing to Ownership

Our Florida client contacted us, ready to shift from leasing to ownership of his hotel. He currently was leasing the land, but had built up enough management experience and capital to own his hotel outright.

GRP Capital Managing Director Krishan Patel was ready to find him an appropriate lender. Patel stated, “Our client was an ideal candidate for financing his transition to being a full owner of the property. He demonstrated strong management skills at the current property.  In addition, he had sufficient capital  for his equity injection. He was organized about every aspect of ownership and management. This included being hands-on with his financials and hotel statistics, as well as understanding the hotel business and his local market conditions. We were pleased to find him stable, permanent financing.”

Moving from Leasing to Ownership? 

• Demonstrate strong management: Make sure you have accurate financials. Organize all of your paperwork about your operating company. Create a new company as the borrowing entity if you need to. Finally, prepare a budget for the current year and a proposed future budget.

•  Know your property:  What are the strengths and challenges of your property? What are your future plans if you take on ownership that you couldn’t do previously? How is your property positioned in your local and regional marketplace?

•  Evaluate your current debt:  Will you be able to make new, larger loan payments? Do you have a recent SBA loan, like an Economic Injury Disaster Loan (EIDL) or a Paycheck Protection Program (PPP) loan? If so, the lender may request you to pay down, pay off or subordinate your  loans. Lenders may also require you to apply for and receive forgiveness for PPP loans.

•  Why do You Want to Own? Many business owners like the prestige of ownership as opposed to renting. This is understandable, but it may not be a good enough reason. Ownership requires being able to make major repairs. Is the property currently well-maintained or will you be obligated to take on a lot of deferred maintenance projects?

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 help. Or if you want to investigate refinancing, we can assist you.

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.

Louisiana Hotel Loan Closes

Our client needed a Louisiana hotel loan. He already owned a nearby property and knew the area well. He had been watching this particular hotel, as he perceived that it was underperforming in the market.

GRP Capital was ready to help.

But, because it’s Louisiana, sometimes Mother Nature has her own ideas. In this case, we were processing the loan during traditional hurricane season. Of course, a hurricane swept through the town, but did not damage the subject property. However, it did delay the appraiser being able to get out to the site.

Our client was solid as a rock, however. He understood that you have to be organized and calm during the storms in order to accomplish your goals.

GRP Capital Managing Director Krishan Patel commented, “We were so pleased with our client. He was organized and cheerful. He kept his eye on the prize, getting us documents quickly, discussing loan strategy with us and making necessary changes. It’s hard to be a business owner in the Bayou, but we were excited to close this Louisiana hotel loan.”  

How to Get Organized for a Future Loan: 

• Gather your tax documents: Make sure you have three years of business and personal taxes, including your W-2’s. Get them electronically from your accountant, to make them easy to submit.

•  Meet with your accountant: Tell your accountant that you will be applying for a loan. You will need updated financials and you may need to understand the details of your taxes. Be sure that the taxes you have match the official ones that were submitted. Apply for an extension if it’s time.

•  Tell Us Your Goals:  GRP Capital want to understand why you need financing. What are your business goals? What will you be using the money for? Why do you think this is the right time to make this decision?

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.