Category Archives: Small Business

New Owner Buys South Carolina Hotel

Our clients have just purchased a South Carolina hotel. This partner group of first-time owners found an underperforming property and purchased it with very good terms. They utilized a 21% equity injection and their loan covered all closing costs and included hefty working capital.

Senior Associate Ryan Dumas was very happy for our clients. Ryan remarked, “These clients had done their homework and found a South Carolina hotel, which was a strong property. However, this property wasn’t cash flowing. We were able to demonstrate to the lender how our clients would better manage the property. I am proud of the loan that we procured for these clients. I know they will be able to turn this hotel around and make it much more profitable in a very short time.” 

When a Property is Underperforming

• Do Your Due Diligence: One of the benefits of using our GRP Capital team is that we look at all of the documents we can to figure out where management has gone wrong. We study the market conditions, competitor performance (sometimes through STR reports), financials, hotel statistics  and sales/occupancy taxes. Our team advises our clients to purchase only if we think the hotel has the potential to become more profitable. We also encourage our clients to limit overly large earnest money requirements during the due diligence period.

• Make a Solid Business Plan: Potential buyers of underperforming properties need to quickly identify ways they would manage better. How would you improve the condition of he property? Its marketing? Its rates? What changes would you make in staffing and purchasing? Sometimes the answer includes being onsite more as absentee ownership and management can allow properties to flounder.

• Plan to utilize working capital and reserve funds: Properties that are underperforming often have had deferred maintenance or possess a tired appearance. It is wise to have a slightly larger loan if it includes working capital and funds for a PIP. It also makes sense to have cash reserves for initial costs upon taking over ownership.

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.

GRP Closes Gas Station Construction Loan in South Florida

GRP Capital is pleased to announce the closing of a gas station construction loan in Miami-Dade County. The proposed development will consist of a gas station and retail unit mix.

The GRP Capital team secured a fully amortized, 25-year permanent loan for the borrower. In addition, the loan proceeds included working capital and closing costs. The developer was referred to GRP from from a past project.

GRP’s Managing Director, Krishan Patel stated, “We are pleased to have closed this development loan, not only because of the community impact it will have, but because this closing proves that lenders ultimately have a positive market outlook.”

During the recent economic downturn, the strength of our lending relationships is more important than ever. The GRP Capital team specializes in finding the right lender for each project. We save our clients time and provide options, as we research and connect to different funding sources.

Closing this loan demonstrates GRP’s ability to secure funding for business owners even in these uncertain economic times. To be sure, business conditions are experiencing a “new normal”. However, business loans post-COVID 19 are possible under the right conditions.

High Season for Gas Stations: Are you ready?

Summer is around the corner and with it the high season for gas stations.

Some statistics that you should know:

  • The U.S. Travel Foundation is still predicting high travel for 2023, despite inflation.
  • Domestic travel in the U.S. remains the most popular option.
  • 37 million Americans are planning to travel just during Memorial Day weekend. 

Is your gas station ready for the Summer of the Car?

Our network of lenders is still keen to make financing available for gas stations and convenience stores. Perhaps you are interested in purchasing or construction of a gas station. Or maybe you already own a gas station and are ready to renovate. Now is the time to capitalize on this sweet spot in financing. Here are some ideas to consider for future renovations and current operations:

Revenue Enhancements for Gas Stations

• Are you fully staffed? Gas stations and convenience stores naturally compete with their nearest neighbors. Does your store have a reputation for efficiency? Indeed, the only way to be efficient is to have sufficient staffing. In essence, when you are you fully staffed, you can sell more types of products. These can  include drink stations, complicated coffee stations and self-serve snacking. 

• Car Wash Capacity: Increased driving means increased dirty cars! What’s more, those car washes quickly pay for themselves, especially when customers see no waiting for a wash. It’s no surprise that lenders are quite willing to fund renovations that include increasing car wash capacity. 

• Charging Stations: Electric and hybrid cars are increasing throughout urban and suburban areas. First thing to remember, charging takes a few minutes. As a result, these customers will absolutely use this down time to come inside and make some purchases. Therefore, adding charging stations is a great investment, one that is viewed favorably by lenders. Finally, installing a charging station may also have a tax incentive. 

• Fuel Supply Agreements: Are you satisfied with your fuel supply agreement or are you ready to renegotiate? GRP Capital can help you in this process, one which directly affects your bottom line. 

If you are interested in any form of gas station loans, now is the time to act. Contact our team or email us at fuelup@grpcapital.com to access our gas station specialists.