Category Archives: Small Business

From Renting to Owning: Client Now Owns his Office Space

Many of our small business owners want to move from renting to owning. We think, if it is affordable, now might be the time to make that decision. Rental prices for commercially leased properties are moving up in many markets. Transforming from renting to owning allows you to control your bottom line. Your mortgage payments will remain relatively constant, depending on the terms.

Our client was renting his suburban Dallas office space. He was ready to make the move from renting to owning. However, he had never purchased commercial real estate. Our team, along with Business Associate Niraj Zaveri, worked closely with him to make the process as transparent and smooth as possible.

Is this the time to move from Renting to Owning?  

• Lease payments vs. mortgage payments : We will help you compare what you currently pay in leases to what your potential mortgage payments might be. GRP Capital finds a variety of lenders and presents clients with several different options for financing. Clients can then compare all of the aspects of these term sheets before making a decision. We help crunch the numbers so you can determine what is best for you. We will also try to forecast what your future lease rates would be if you continue to rent. Will you have additional space to rent? If so, we will help you determine a reasonable market rate for that income.

•  How Long will you be occupying the space?: Changing office locations can be disruptive to your core business. In addition, making plans to “flip” office space may not make sense in every situation. If you are planning to stay in the office for a while, you will realize greater financial stability. This gives time for the start up costs and any equity injection to be offset by lower payments.

•  What do you have in Place to be an Owner? When you become the owner of your office space, you will have more responsibilities. These include taxes and insurance, but also maintenance and upkeep. Do you have the time to take on these additional responsibilities or have you created a team to take these on? Ownership should allow you to take control of your office space and your payments, without taking you away from running your business.

Niraj Zaveri on closing this loan stated, “I was thankful that my client could work with the experienced GRP Capital team. He was nervous as a first time commercial real estate owner, but we were able to guide him from receiving term sheets to closing and funding his loan.“

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 refinancing a current loan, we can assist you.

Gas Station Loan FAQ’s

Are you in the market for a gas station loan? There are lots of things to consider if you are seeking finance. Gas stations and convenience stores continue to be solid investments, seemingly recession and inflation-proof. GRP Capital is busily working right now on placing several gas station loans, including purchases, refinances and construction.

What do I need to know right now about a gas station loan?

• Lenders are still fans of gas stations and C-stores: Lenders consider gas stations and C-stations to be essential businesses. They have proved their resilience in these somewhat volatile economic times. This gives us more options to find you good, solid lending partners.

• Include Revenue Enhancements in your Business Plan: Many of our lending partners are still very keen on gas station loans and particularly gas station upgrade loans. They want to see your plans to maintain or even increase profitability. As a result, they are willing to finance upgrades like car washes, improvements of indoor retail offerings and adding charging stations for electric vehicles.

• Take advantage of rural business financing if applicable: Did you know that the United States Department of Agriculture offers loan guarantees for small businesses in rural areas? If your store is located near a highway but outside the metro center, this might be an option for you. USDA loans offer rates that might be more affordable for certain borrowers

Why GRP Capital Can Help Gas Station Owners:

• We Do the Work So You Can Do Yours: Lots of small business owners work hard. However, we know that gas station/C-store ownership and management is particularly labor intensive. Our clients can rely on us to fill out documents, review them, obtain signatures, and set up site visits, all while working in partnership with the lender. We also have relationships with professionals like environmental engineers which can help us make the loan process go more smoothly. Ultimately, we work hard securing your funding, so you can work hard running your business.

• We Know the Gas Station Business: We have worked with a variety of clients who own gas stations and C-stores. We have expertise in funding the purchases, refinances and construction of gas stations and C-stores. We understand the nature of the business and many of its challenges, including staff retention. As a result, we can make the case for your business, showing its profitability and its potential for future profitability.

Contact Our Team For Your Financing Needs:  

If you are considering a loan for purchase, refinance or construction and would like to discuss your plans, feel free to contact our team. We have a network of lenders and can find the best match for your funding needs, saving your time and money, so you can focus on running your business.

Gas station

What About a Gas Station Loan to Upgrade?

A gas station loan may be just what your business needs to enhance revenue. Many of our lending partners are still very keen on gas station loans and particularly gas station upgrade loans. Gas stations and convenience stores continue to be solid investments, seemingly recession and inflation-proof. GRP Capital is busily working right now on placing several gas station loans, including purchases, refinances and construction.

What Upgrades should I consider with a Gas Station Loan?

• Luring Customers inside to spend more: While gas purchases are important, owners can seriously increase revenues when they encourage add-on spending from customers. Inside store sales are a key example of this add-on spending. Car washes are also considered add-on spending. Having a variety of tasty treats, do-it-yourself beverage stations and prepared foods are all enticing. It’s important to create the infrastructure to offer more variety (food stations, etc.). However, equally important is finding and maintaining sufficient workers to tend to these new areas.

• Car Washes: Car washes are a terrific gas station upgrade. They do require maintenance and increased water and supply costs. But these can be offset with enough volume. We are also seeing gas station owners offering initial car wash specials or encouraging loyalty programs.

• Charging Stations: Gas stations can still be relevant to drivers of electric vehicles through the installation of charging stations. Additionally, there is often matching governmental funding for creating charging stations. Most importantly, drivers of electric cars have to linger at the charging stations for a little while. Therefore, they have time to kill, time which can be spent shopping in your retail area.

Why GRP Capital Can Help Gas Station Owners:

• We Do the Work So You Can Do Yours: Lots of small business owners work hard. However, we know that gas station/C-store ownership and management is particularly labor intensive. Our clients can rely on us to fill out documents, review them, obtain signatures, and set up site visits, all while working in partnership with the lender. We also have relationships with professionals like environmental engineers which can help us make the loan process go more smoothly. Ultimately, we work hard securing your funding, so you can work hard running your business.

• We Know the Gas Station Business: We have worked with a variety of clients who own gas stations and C-stores. We have expertise in funding the purchases, refinances and construction of gas stations and C-stores. We understand the nature of the business and many of its challenges, including staff retention. As a result, we can make the case for your business, showing its profitability and its potential for future profitability.

Contact Our Team For Your Financing Needs:  

If you are considering a loan for purchase, refinance or construction and would like to discuss your plans, feel free to contact our team. We have a network of lenders and can find the best match for your funding needs, saving your time and money, so you can focus on running your business.

Gas Station Loans and Gas Station Upgrade Loans

Many of our lending partners are still very keen on gas station loans and particularly gas station upgrade loans. These businesses continue to be solid investments, seemingly recession and inflation-proof. We routinely check in with our lending partners to see what their appetite is. They are telling us that they remain highly interested in funding gas station purchases, refinances, and gas station upgrades.

What are Gas Station Upgrade Loans?

• Finding Paths to Increased Profits: Gas station owners have a few ways to increase revenues. Pricing their fuel to drive traffic to the store is one way. However, many fuel center owners believe that the true revenue centers are those that encourage add-on spending from customers. Inside store sales are a key example of this add-on spending.

• Car Washes: Car washes are a great gas station upgrade. They do require maintenance and increased water and supply costs. But these can be offset with enough volume. We are also seeing gas station owners offering initial car wash specials or encouraging loyalty programs.

• Charging Stations: Gas stations can still be relevant to drivers of electric vehicles through the installation of charging stations. Additionally, there is often matching governmental funding for creating charging stations. Most importantly, drivers of electric cars have to linger at the charging stations for a little while. Therefore, they have time to kill, time which can be spent shopping in your retail area.

Why GRP Capital Can Help Gas Station Owners:

• We Do the Work So You Can Do Yours: Lots of small business owners work hard. However, we know that gas station/C-store ownership and management is particularly labor intensive. Our clients can rely on us to fill out documents, review them, obtain signatures, and set up site visits, all while working in partnership with the lender. We work hard securing your funding, so you can work hard running your business.

• We Know the Gas Station Business: We have worked with a variety of clients who own gas stations and C-stores. We have expertise in funding the purchases, refinances and construction of gas stations and C-stores. We understand the nature of the business and many of its challenges, including staff retention. As a result, we can make the case for your business, showing its profitability and its potential for future profitability.

Contact Our Team For Your Financing Needs:  

If you are considering a loan for purchase, refinance or construction and would like to discuss your plans, feel free to contact our team. We have a network of lenders and can find the best match for your funding needs, saving your time and money, so you can focus on running your business.

Your Gas Station Loan Specialist

As a premier gas station loan specialist, we love to fund gas station loans and convenience store loans for our clients. These businesses continue to be solid investments, seemingly recession and inflation-proof.

Our lending partners remain highly interested in funding gas station purchases, refinances, and construction for qualified borrowers. In fact, one of the first loans that the GRP Capital team closed after the COVID-19 pandemic began was a gas station development loan.

We we are a Gas Station Loan Specialist:

• Understanding the Business: We have worked with a variety of clients who own gas stations and C-stores. We have expertise in funding the purchases, refinances and construction of gas stations and C-stores. We understand the nature of the business and many of its challenges. These include staff retention and negotiation of fuel supply agreements. As a result, we can make the case for your business, showing its profitability and its potential for future profitability.

• Finding Motivated Lenders: We, like our clients, are carefully monitoring the ups and downs of our economy. Our lenders are doing the same. Gas station and convenience store owners have routinely demonstrated how essential their businesses are, no matter the vagaries of the stock market.

• We Do the Work So You Can Do Yours: Lots of small business owners work hard. However, we know that gas station/C-store ownership and management is particularly labor intensive. Our clients can rely on us to fill out documents, review them, obtain signatures, and set up site visits, all while working in partnership with the lender. We work hard securing your funding, so you can work hard running your business

• Fuel Supply Agreements: Fuel supply agreements set up an established “cut” for the supplier. This protects the supplier, while providing stability for the gas station owner. No matter what the price of the fuel is, the owner will still make money. Crucially, the fuel supply agreement also allows the owner to predict future revenues more accurately. This built-in stability makes a gas station loan attractive for many lenders. We have been able to assist our clients in obtaining favorable fuel supply agreements, which will positively impact their profitability for a long time.

Contact Our Team For Your Financing Needs:  

If you are considering a loan for purchase, refinance or construction and would like to discuss your plans, feel free to contact our team. We have a network of lenders and can find the best match for your funding needs, saving your time and money, so you can focus on running your business.

Contact our gas station and convenience story specialists at fuelup@grpcapital.com, our dedicated email address just for you.

Gas Station Financing Is Still a Solid Business Plan!

If you are looking for gas station financing, we have very good news for you. Gas station financing is still a solid business plan. In fact, one of the first loans that the GRP Capital team closed after the COVID-19 pandemic began was a gas station development loan.

Why Lenders Like Gas Station Financing:

• Recession Proof/Inflation Proof/Pandemic Proof: Many aspects of the American economy have changed since 2020. But lenders agree: gas stations and convenience stores are stable businesses, especially when well-managed. The fuel supply entity with retail space is a truly essential business, adaptable and popular, too.

• We Find Lenders who Know this Business: Every lender is different and has different wish lists for their loans. Some want their clients to live in certain states; other lenders prefer certain industries while avoiding others. We know which lenders are right for your loan and we go to them first to request a term sheet. When we have a few competing term sheets, we show them to our clients. Ultimately, our clients choose their lenders, but we save time and money by sourcing the lenders who are interested in their type of projects.

• Fuel Supply Agreements: Lenders like the stability of fuel supply agreements. These agreements set up an established “cut” for the supplier. As a result, there is a measure of protection for both the supplier and the gas station owner. No matter what the price of the fuel is, the owner will still make money. This built-in stability makes a gas station loan attractive for many lenders. We also have been able to assist our clients in obtaining favorable fuel supply agreements, which will positively impact their profitability for a long time.

Contact Our Team For Your Financing Needs:  

If you are considering a loan for purchase, refinance or construction and would like to discuss your plans, feel free to contact our team. We have a network of lenders and can find the best match for your funding needs, saving your time and money, so you can focus on running your business.

Gas Station Loans and Convenience Store Loans

We love to fund gas station loans and convenience store loans for our clients. These businesses continue to be solid investments, seemingly recession and inflation-proof. We routinely check in with our lending partners to see what their appetite is. They are telling us that they remain highly interested in funding gas station purchases, refinances, and construction for qualified borrowers. In fact, one of the first loans that the GRP Capital team closed after the COVID-19 pandemic began was a gas station development loan.

How we can help fund your Gas Station or C-Store:

• Understanding the Business: We have worked with a variety of clients who own gas stations and C-stores. We have expertise in funding the purchases, refinances and construction of gas stations and C-stores. We understand the nature of the business and many of its challenges, including staff retention. As a result, we can make the case for your business, showing its profitability and its potential for future profitability.

• Finding Motivated Lenders: We, like our clients, are carefully monitoring the ups and downs of our economy. Our lenders are doing the same. Gas station and convenience store owners have routinely demonstrated how essential their businesses are throughout the past two years of change. These businesses were able to pivot and be adaptable. In addition, customers appreciate the one-stop shopping at these shops, avoiding lines and larger crowds.

• We Do the Work So You Can Do Yours: Lots of small business owners work hard. However, we know that gas station/C-store ownership and management is particularly labor intensive. Our clients can rely on us to fill out documents, review them, obtain signatures, and set up site visits, all while working in partnership with the lender. We work hard securing your funding, so you can work hard running your business

• Fuel Supply Agreements: Fuel supply agreements set up an established “cut” for the supplier. This protects both the supplier and the gas station owner. No matter what the price of the fuel is, the owner will still make money. This built-in stability makes a gas station loan attractive for many lenders. We have been able to assist our clients in obtaining favorable fuel supply agreements, which will positively impact their profitability for a long time.

Contact Our Team For Your Financing Needs:  

If you are considering a loan for purchase, refinance or construction and would like to discuss your plans, feel free to contact our team. We have a network of lenders and can find the best match for your funding needs, saving your time and money, so you can focus on running your business.

What about your EIDL Loan?

If you have an EIDL loan (Economic Injury Disaster Loans offered by the Small Business Association), what do you need to know about future loan transactions?

  • What about buying a new business?
  • What about refinancing a current business?
  • What about selling my business?

Many of our clients have an EIDL loan. We encouraged our clients to obtain these during the most restrictive part of the COVID pandemic. These low interest loans gave needed relief to some of the hardest hit industries, including hospitality.

Selling a Business with an EIDL Loan:

• EIDL Loans Mostly Have to Be Paid off poor to sale: Any lender who is funding the purchase of a business with real estate will require that buyers own the property “free and clear”. This means that there cannot be any liens (claims from lenders) on the property or the business. So, sellers must pay off previous EIDL loans prior to or at closing.

• Perhaps One Exception:  Sellers may have multiple businesses or properties. Some sellers, especially larger corporate sellers, may have an EIDL for the parent company but not the smaller component business being sold. If the EIDL is for the parent business, the new lender may find a way to make an exception.

Paying off an EIDL at or before closing:  Be aware that the SBA does not accept payoff via wire. At closing the title or escrow company will have to make out a physical check for the balance of the EIDL. The borrower can find the balance on their SBA portal. The SBA website also has clear instructions for paying off the loan via mail.

I Have an EIDL and I want to Refinance

• Size matters!  If your EIDL loan is small, then the lender may agree to pay it off. They will roll the remainder of the EIDL into the total loan value. If the loan is larger, there are a few possibilities.

• Paying off an EIDL: You may be holding on to the proceeds of the loan (and therefore have cash on hand). But new lenders will not consider the proceeds of the EIDL as an asset without also considering your EIDL loan as a liability. Therefore, a large EIDL may negatively impact your debt to income ratio. The lender may consider that you have too much debt and require you to pay off or pay down the loan.

• Subordinating an EIDL: Often lenders will agree to subordinate an EIDL. This means that they will request permission from the SBA to delay receiving payments for the EIDL until the mortgage has been paid off. Borrowers have to officially request subordination and the SBA has to grant it. This process is not automatic. In addition, requesting subordination can take some time. We have found that subordination happens most easily when we work with our network of SBA preferred lending partners.

I Have Other Businesses with EIDL loans and I’m Getting a New Loan:

The lender will underwrite your entire file and look at your affiliate businesses. If your other businesses are cash flowing and covering your debts, there are no issues with other EIDL loans. We are happy to help you do a self-evaluation of your cash position for all of your businesses. This will help you if you need to make your portfolio stronger prior to looking for financing.

If you are considering a loan for purchase or refinance and would like to discuss your plans,  feel free to contact our team.  We have a network of lenders and can find the best match for your funding needs, saving you time and money, so you can focus on running your business.

EIDL Loans: What to know if you are buying, selling or refinancing

EIDL Loans (Economic Injury Disaster Loans offered by the Small Business Association) have helped many small business owners during the COVID pandemic. These low interest loans gave needed relief to some of the hardest hit industries, including hospitality.

Many business owners have EIDL Loans on the books. What do you need to know? What do you need to do? An EIDL has an impact on selling, buying and refinancing.

I’m Buying or Selling a Business with an EIDL Loan:

• All liens have to be released: Any lender who is funding the purchase of a business with real estate will require that buyers own the property “free and clear”. This means that there cannot be any liens (claims from lenders) on the property or the business. So, sellers must pay off previous EIDL loans be paid off prior to or at closing. Also, previous PPP (Paycheck Protection Program loans) will need to be have been forgiven.

• Perhaps One Exception:  Sellers may have multiple businesses or properties. If the EIDL is for the parent business, the new lender may find a way to make an exception.

Paying off an EIDL:  Be aware that the SBA does not accept payoff via wire. At closing the title or escrow company will have to make out a check for the balance of the EIDL. The borrower can find the balance on their SBA portal. The SBA website also has instructions for paying off the loan via mail.

I Have an EIDL and I want to Refinance

• Size matters!  If your EIDL loan is small, then the lender may agree to pay it off. They will roll the remainder of the EIDL into the total loan value. If the loan is larger, there are a few possibilities.

• Paying off an EIDL: You may be holding on to the proceeds of the loan (and therefore have cash on hand). However, a large EIDL may negatively impact your debt to income ratio. The lender may consider that you have too much debt and require you to pay off or pay down the loan.

• Subordinating an EIDL: Often lenders will agree to subordinate an EIDL. This means that they will request permission from the SBA to delay receiving payments for the EIDL until the mortgage has been paid off. Borrowers have to officially request subordination and the SBA has to grant it. This process is not automatic. In addition, requesting subordination can take some time. We have found that subordination happens most easily when we work with our network of SBA preferred lending partners.

I Have Other Businesses with EIDL loans:

The lender will underwrite your entire file and look at your affiliate businesses. If your businesses are cash flowing and covering your debts, there are no issues with other EIDL loans.

If you are considering a loan for purchase or refinance and would like to discuss your plans,  feel free to contact our team.  We have a network of lenders and can find the best match for your funding needs, saving you time and money, so you can focus on running your business.

Independent Texas Hotel Loan Closes

Our clients were ready to purchase a small, but profitable independent Texas hotel. It was adjacent to another franchised hotel, which they were also in the process of purchasing.

GRP Capital worked closely with the buyers and sellers. We paid particular attention to the specialization required to obtain loans for independent properties.

Senior Associate Ryan Dumas was pleased to close the loan. He remarked, “This independent Texas hotel is perfect for creating two market price points for my clients. The loan is affordable and stable and will allow them to continue the profitability of the current hotel.”

Special considerations regarding Independent Hotels:

• Hotel statistics . Franchised hotels utilize reservation and check-in systems that generate hotel statistics. These statistics include occupancy, ADR (average daily rate) and RevPAR (Revenue per available room). Independent hotel operators may or may not utilize sophisticated programs. Thus, generating this important information (needed by both lenders and appraisers) can be a challenge.

• Sales and Occupancy Tax Records Required:  Most independent hotels do not participate in STR reporting. In addition, they are not using franchise check-in software. As a result, it can can be difficult to ascertain their revenues and profitability. Lenders and appraisers will accept two different third party reports: either business bank statements or sales tax receipts that show the revenue basis of monthly occupancy taxes. Sellers of independent hotels should be prepared to provide one of these sets of documents.

• Financials. It’s our job at GRP Capital to comb through seller financials. We want to make sure they match up with the hotel statistics and the taxes. Then we can provide a very clear picture to lenders and appraisers. We want all of the stakeholders to understand the current profitability of a property and its potential.

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.