Category Archives: Small Business

Florida Beach Hotel Loan Closes

Our clients were looking for a Florida beach hotel. When this one came on the market, they were ready to pounce. The hotel is on a small island with very few other hotels in direct competition. The clients have retained the current management. However, they have set up new incentives in order to increase occupancy and garner even better online reviews.

GRP Capital President Rick Patel worked closely with the buyers, as well as many other participants in the loan process. These included the insurance agent, the accountant and the various attorneys. Rick stated, “This hotel was a high value property because of its position in a limited marketplace and its potential for profit. With these larger transactions, there are even more details that we needed to be on top of. I was proud of our team for closing the loan as quickly as possible, locking in the interest rate. I know our clients are happy with their new business and are ready to capitalize on their acquisition.”

Issues Unique to Beach Hotel Loans

• Staffing and management : Some beach properties are far from affordable housing and some are not. Be aware that you will have to find staff who can afford to live within commuting distance. Some business owners are even reserving housing for key staff members as an added benefit.

•  What’s the insurance claim history of the property?  Many coastal properties have a history of moderate or even significant damage from storms and flooding. Find out about any recent insurance claims. Make contact with the current insurance agent to obtain a quote and compare that with any from an agent you are currently using. Make sure you factor in the insurance costs when you are evaluating financial statements and expenses.

•  What happens during the off season? Many properties with high tourist occupancy have a high season and a low season. What is the occupancy “out of season”? What can be done to increase occupancy and maintain ADR?

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 for purchase, refinance and construction loans. 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.

We Were Rushed; Seller Needed to Close Quickly

Our clients wanted to purchase a Gulf Coast hotel, but they needed to close quickly. The sellers were ready not only to sell, but to purchase another property. Not surprisingly, the sellers needed the proceeds from the sale of this hotel to fund their new enterprise.

GRP Capital was ready for this mission!

GRP Capital Managing Director  Krishan Patel, GRP President Rick Patel and Loan Processor Keren Alpert were in constant communication with each other. The team also worked in tandem with the buyers, the sellers, the attorneys, the lender and the title company. Therefore, the loan was able to close quickly, allowing the sellers to take their proceeds. Even better, the buyers have taken on a very profitable hotel, which is newly renovated and should continue to cash flow nicely for them.

Rick Patel stated, “We really worked diligently as a team to expedite this loan and close quickly. We knew how important it was to the seller and the buyers. We want to do what we can to support the closing process. As a result, the seller and the buyer can preserve their good relationship with each other. We were very pleased with the time frame and the outcome.”

Is it possible to close quickly?

• Is the title report clean? A “clean” title means that are minimal liens on the property. Previous mortgages are perfectly fine, as well as EIDL loans. In addition, there should be no clouds on title, that is nothing should bar a clear chain of ownership. Sellers who wish to close quickly will often ask their attorneys or title company to run a preliminary title report, which can show if there are any issues that need attention. Refinances typically have fewer title issues.

•  Is there a recent survey?  A recent survey will show the borders of the real estate, the building square footage, the elevation and the flood zone. Many title companies and lenders require a recent survey. Unfortunately, in many locales, there is a shortage of surveyors. Therefore, obtaining a survey is a high priority at the beginning of the loan process.

•  Is the business profitable? GRP Capital has definitely closed multiple loans on businesses that are underperforming. In these situations, the buyers are planning to make changes in the facility or the operation of the business in order to turn it around. However, in order to close a loan quickly, a currently cash flowing business is optimal.

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 for purchase, refinance and construction loans. 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.

How and Why we Find Lending Partners

What we do here at GRP Capital is find appropriate lending partners for our clients. But what does that mean? Why does it matter? And why would lending partners even want to work with us?

We’re glad you asked. Here’s what you need to know!

What our Lending Partners Want

  • First, lenders want to make loans in the right “buckets”. Sometimes these are for certain industries, sometimes they are in a certain geographic area. And sometimes, the desirable loans are for a certain size or a specific structure.
  • Lenders prefer to receive documents that meet their standards, are correct and demonstrate the true nature of the borrowers.
  • Lenders want to find qualified borrowers, who can pay back their loans through managing and owning profitable business ventures.

How GRP Capital and Lenders Work Together

  • Probably most importantly, our lenders know that GRP Capital analyzes all of our potential clients before we begin to search for matching lenders. This analysis saves time for our lenders as they trust our ability to determine the strengths and issues that all of our potential loans have.
  • Lenders do not have time to waste. They know that GRP Capital will not bring them loans that are not in their wheelhouse.
  • Finally, lenders are desirous of a smooth path through underwriting and closing. This is where we really do some of our finest work.

How our clients benefit:

  • Because we start off looking for appropriate lenders, we can save our clients time and money as well as finding the loan that is structured for their needs. Each loan is unique. We do not have a cookie cutter approach.
  • Our clients may take on occasional loans. But our highly experienced loan processing team has seen it all. We know exactly the expected quality and content of all of the documents that our lending partners request.
  • Our loan processing team works directly with the bank, the title company, the attorneys, the insurance agents, the accountants. We work hard so our clients can run their businesses. Our clients prefer this setup, and our clients’ comfort is preeminent.

What lenders say about us:

“I wish all our clients were GRP Capital clients.”

“You guys rock!”

“They are great to work with and very responsive.”



Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.
Checklist with hand

Business Recovery After the Hurricane: A Checklist

Let’s talk about business recovery after a major weather even.

We still have six weeks to go in the hurricane season! But many of our clients have already experienced physical damage as well as interruption to their businesses including loss of revenue.

What are the Most Important Tasks for Business Recovery?

Communicate with Your Lender!

  • Believe it or not, if you have commercial real estate, contact your lender right away.
  • Let the lender know about any damages and how you think this might affect your business. Be honest about what the challenges could be in terms of both revenue and expenses.
  • Your lender may reduce or delay your regular mortgage payments for a short time.
  • If GRP Capital helped you find a loan, we are happy to work directly with the lender on your behalf, so you can attend to your business recovery needs.

Determine Physical Damage and Engage Insurance

  • First, determine all of the physical items that need to be repaired. It’s critical to obtain multiple quotations.
  • If your repairs are extensive, you may want to hire an attorney who specializes in real estate, insurance and contracts. Critically, this attorney will work directly with the insurance adjuster.
  • On the advice of an attorney, you may want to hire your own “public adjuster”. A public adjuster works for you and not the insurance company.
  • Find out the procedures for paying for repairs. Some insurance companies have preferred providers. They may have their own forms and secure links for invoices.
  • If you were already considering renovations, consider combining hurricane repair with renovations. Click here for more information on this business plan.

Loss of Income or Business Interruption

  • In addition to physical damage, how is your business functioning?
  • Have you suffered business interruption because your business had to close due to damage or power failures?
  • Were you unable to operate at capacity because your employees were unavailable?
  • Make a list of all of the ways your business had economic injury. If you have business interruption insurance, you can provide this list to your agent.

Apply for SBA Disaster Loans

  • The Small Business Administration sets aside money in cases of major weather events.
  • In order to apply for help following Hurricane Milton, click here. For Hurricane Helene, click here.
  • You can receive low interest loans to cover uninsured losses, whether they are physical damage or economic injury.
  • GRP Capital can assist with applying for SBA help. Please contact our team to start the process.
Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.
Hurricane Texas picture

Combining Storm Damage Repairs and Renovation

Are you looking at storm damage repair from Hurricane Beryl?

Hurricane Beryl is now in the history books. This storm kicked off the traditional hurricane season and caused significant damage over a large swath of the country. Now, business owners are facing water damage as well as long-term power outages. Consequently, many business owners are working on their hurricane repair plans.

Sometimes storms come with a silver lining. This could be one of those times.

If you have a property that is in need of hurricane repairs, consider upgrading or renovating your property at the same time as the repairs. You could undertake more extensive renovations, even take on deferred maintenance. Especially if you have had any previous mold that needs to be remediated, using insurance proceeds to clean up water intrusion may allow you to fix both problems.

Actually, doing additional renovations during repairs can be very cost-effective. Your demolition costs may be lower. Your timeframe may be ideal, too. Essentially, you are combining your insurance compensation with other financing. GRP Capital can help secure financing through a new loan or a refinanced or restructured existing loan.

Preparing for Your Storm Damage Repair and Renovations

  • First, determine what needs to be repaired. It’s critical to obtain multiple quotations.
  • Find out the procedures for paying for repairs. Some insurance companies have preferred providers. They may have their own forms and secure links for invoices.
  • If your repairs are extensive, you may want to hire an attorney who specializes in real estate, insurance and contracts. Critically, this attorney will work directly with the insurance adjuster.
  • Now make a list of what items you would renovate if money were no object. Choose from projects that would enhance your property or increase its value. Consider franchise renovation packages if applicable.
  • Then rank your list of projects.
  • Next, talk with trusted construction and renovation professionals. Certainly, discuss both the critical hurricane repairs and your wishlist.
  • Finally, determine how much you would save by combining projects.

Contact GRP Capital while you are gathering your data. Be sure to let us know about your repairs and your wishlist. Truthfully not all lenders show interest in every kind of loan. Fortunately, we know which lenders in our lender network are financing these combination project loans. This knowledge can save you time and money.


Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.

Combining Hurricane Repair and Renovation

Hurricane Ian was a big storm, causing major damage. Consequently, many business owners are working on their hurricane repair plans.

Sometimes storms come with a silver lining. This could be one of those times.

If you have a property that is in need of hurricane repairs, consider upgrading your property at the same time. You can undertake more extensive renovations, even deferred maintenance.

Actually, doing additional renovations during repairs can be very cost-effective. Your demolition costs may be lower. Your timeframe may be ideal, too. Essentially, you are combining your insurance compensation with other financing. GRP Capital can help secure financing through a new loan or a refinanced or restructured existing loan.

Preparing for Your Hurricane Repair and Renovations

  • First, determine what needs to be repaired. It’s critical to obtain multiple quotations.
  • Find out the procedures for paying for repairs. Some insurance companies have preferred providers. They may have their own forms and secure links for invoices.
  • If your repairs are extensive, you may want to hire an attorney who specializes in real estate, insurance and contracts. Critically, this attorney will work directly with the insurance adjuster.
  • Now make a list of what items you would renovate if money were no object. Choose from projects that would enhance your property or increase its value. Consider franchise renovation packages if applicable.
  • Then rank your list of projects.
  • Next, talk with trusted construction and renovation professionals. Certainly, discuss both the critical hurricane repairs and your wishlist.
  • Finally, determine how much you would save by combining projects.

Contact GRP Capital while you are gathering your data. Be sure to let us know about your repairs and your wishlist. Truthfully not all lenders show interest in every kind of loan. Fortunately, we know which lenders in our lender network are financing these combination project loans. This knowledge can save you time and money.


Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.

Is It Time to Refinance Your SBA 7a Loan?

Do you have a Small Business Administration SBA 7a loan that is at least three years old?

Have you been meeting your business plan goals and objectives?

Now is a good time to examine what the options are for refinancing your SBA 7a loan.

Timing an SBA 7a Refinance

• Three years: SBA 7a loans have prepayment penalties for the first three years. Therefore, we advise most borrowers to wait until the three years have elapsed before seeking refinances. There are a few select cases, however, where the prepayment penalties are worth it.

• Do you have evidence of meeting profit targets? If you are looking to refinance a loan, lenders need evidence that your business is largely on target. We find that lenders are willing to overlook the market disruptions of COVID, especially during mandatory lockdowns. Other than that, your financial statements should demonstrate sustained profitability. In addition to financial statements, lenders and appraisers typically require evidence from third parties. These can include STR reports or sales tax bills based upon revenue receipts.

• Debt Coverage:  The most important factor in finding affordable, reasonable loans is your current debt coverage. Lenders are not impressed just with the value of your property. In this somewhat volatile economic milieu, demonstrating the ability to pay back loans and having capital reserves is key.

Debt Refinance Possibilities and Other Structures:  We can help you determine the best next steps. It might be to refinance existing debt, retire part of it or even restructure it. We can help evaluate your financing and cash flow needs. You will have a better sense of what type of financing options exist and choose the best one for your business.

If you would like to discuss your SBA 7a loan or any other business plans, feel free to contact our team.  We can conduct a business evaluation, reach out to our lenders, offer advice on bidding and secure financing for you. An initial business evaluation is complimentary.

Do I Really Need a Survey?

What is a survey and do I even need one?

Whether you are buying or refinancing a current business that includes commercial real estate, you really do need a current survey. In fact, most lenders and title officers require a survey.

What Does a Survey Do and Why is it so important?

• Boundaries: The basic purpose of a survey is to show a detailed drawing of your entire property with all of its buildings and improvements. The survey will clearly delineate where your property begins and ends. The survey will be on record and show that you have clear legal ownership of everything within these boundaries.

• Encroachments: An encroachment indicates a place where ownership of a property crosses a boundary line. So maybe there is a shared septic tank with the neighbor and part of that infrastructure is on your property. The survey would show that encroachment and the title company would “insure around that”.

• Easement:  An easement is a section of your property that is carved out for somebody else’s access and use, typically a utility company. So if you have buried cables or an alleyway, sometimes there are easements here. You own the full property, but the easement designates a place that a third party has access to and sometimes even control over. Again, these would be clearly labelled on a survey and title insurance insures around this.

How much time does it take and how much does a survey cost?

• Don’t leave me hanging; what does it cost and how long will it take? Surveyors are professionals. They have to determine the scope of the survey, do research about the boundaries of your property, search city or county records for previous surveys, go to the site, draw the survey and obtain approval from the title officer and the lender of their final survey. Therefore, a survey typically takes at least four weeks and sometimes much longer in different marketplaces and different seasons. The costs can vary but are typically under $10,000, depending on the complications of the building and prior documentation.

• ALTA surveys: There are different types of surveying tools. However, we recommend that borrowers purchase an ALTA (American Land Title Association) survey. These surveys conform to the industry standards and even have a standard document (Table A) which lenders, title officers and surveyors use to communicate about what information they require.

• Are there any ways to save money and time?  The best way to save money and time is to make sure that a relatively current survey has already been done. So if you are refinancing and you never got a survey when you bought your property, arrange for a survey right now! If you are buying a property, ask the seller if there is a current or even an old survey. We often are able to contact the previous surveyor and obtain an updated, re-certified survey, which will save lots of time and money.

If you would like to discuss surveys, title issues, closing, refinancing and purchasing or any other business plans, feel free to contact our team.  We can conduct a business evaluation, reach out to our lenders, offer advice on bidding and doing your due diligence and secure financing for you. An initial business evaluation is complimentary.

Purchase Sale Agreements (PSA) Done Right

When you purchase a land and its business, you must create a purchase sale agreement (PSA).

What does this PSA need to contain to satisfy lenders, appraisers and attorneys?

Purchase Sale Agreements must have:

  • The correct name of the buyer and the seller. This may seem obvious, but often individuals make offers on purchases. However, their business will ultimately be buying the property and taking out the loan. So the buyer should be the business and not the individual. But don’t worry. This occurs so often that the parties typically amend the PSA later (see below).
  • The purchase price. The appraiser and the lenders (and the SBA if this is an SBA guaranteed loan) need to know how much you have agreed to pay for the property and/or business. This number will affect the amount of the loan. In addition, if an appraisal shows the value of the property to be less than the PSA, everybody will have to go back to the drawing board to renegotiate.
  • The date the purchase sale agreement expires. As a buyer, give yourself enough time to secure financing and to close the deal. Simple undeveloped real estate can close more quickly than buildings and businesses that require more complex appraisals and due diligence.

When you need to make changes…

A PSA is the first start of the purchase and getting financing. They are rarely perfect. It’s fairly straightforward to make changes to satisfy all of the parties. Here’s a few that occur often.

Typical Amendments:

• Assigning the Loan: If the original PSA shows the buyer (a person, not a business), then you will need to amend the PSA. This amendment is called an “assignment” and assigns the loan and the buying of the property from the individual to the business or the borrowing entity.

• Price Breakdown: Many times, lenders and attorneys want the purchase price to be broken down. How much is the land worth? What is the value of furniture, fixtures and equipment? What about inventory? Lenders often have preferences about price breakdowns or allocations, so this is another area that is often amended later in the underwriting process.

• Extending the PSA: Certain components during underwriting can delay the loan and the closing. These include lack of a survey, difficulties obtaining documents from buyers and sellers and even discoveries of issues during the environmental site assessment. When these bumps in the road occur, the buyer and seller need to agree to extend the PSA just a bit.

If you would like to discuss financing your future business plans, feel free to contact our team.  We can conduct a business evaluation, reach out to our lenders, offer advice on bidding and secure financing for you. An initial business evaluation is complimentary. We have a network of lenders for acquisitions, refinances and construction projects.

The Evolving World of Appraisals: What You Need to Know

The world of appraisals is undergoing significant changes. Understanding these shifts is crucial, whether you are buying, selling, refinancing or building. Your lender will typically require an appraisal. Being informed about the process and the recent changes can help you navigate it more effectively.

The New Landscape of Appraisals:

  • Debt coverage vs. loan to value (LTV): Appraisers and lenders have shifted their focus from primarily relying on LTV. LTV is the ratio of the loan divided by the appraised value. Instead, the appraisers and lenders are emphasizing total debt coverage. This approach assesses what percentage of your expenses are going to be tied up in financing costs. They will also evaluate post-closing liquidity and cash flow.  
  • Decreased reliance on business potential. When determining the value of your property, lenders are now more conservative, especially for new businesses. They will not loan more than the appraised value of the property, unless additional collateral is considered. For new ventures, appraisers tend to be very cautious.
  • Tax returns vs. financial statements. Some government guaranteed lenders are instructing appraisers to focus on tax returns to uncover the “true” financial picture, rather than relying solely on financial statements. Since tax returns and financials break down expenses and revenue differently, and business owner often file their taxes in a way to minimize tax liabilities, there can be discrepancies. At GRP Capital, we compare tax returns with financial statements to determine the true profitability of a business. Further, we work with appraisers to help align their conclusions. We can collaborate with your accountant to reclassify expenses and revenue to enhance the appraised value.
  • Appraising a business: As-is, As-Complete and As-Stabilized: Appraisers will evaluate your property and business in three ways: as-is (without any renovations or changes); as-complete with improvements (including completed renovations and operational changes) and as-stabilized (considering a future alignment operational efficacy and stabilization). Understanding these distinctions can help you plan your appraisal strategy effectively.

Planning for an Appraisal Site Visit

• For Sellers and Owners: First impressions matter. If you are the seller or the current owner seeking a refinance, ensure your property is clean, well-maintained and presentable. Appraisers want to inspect all areas including public areas and “back of the house” sections. Providing requested documents promptly, such as current financials, building information and surveys, can also positively influence the appraisal process.

• For Buyers: Buyers should communicate their business vision to the appraiser clearly. Highlight any new ideas for enhancing revenue and controlling expenses, planned renovations and your strengths in ownership or management of similar businesses. This can help the appraiser see the full potential of the property.

• A Note on Property Condition Reports: Borrowers can arrange for a PCR (Property Condition Report) during the bidding stage, even before a Purchase Sale Agreement is in place. Unlike appraisals, a PCR focuses solely on the property’s condition, providing honest and independent feedback on what maintenance and renovations are needed in the immediate, short term and long term future.

If you’re ready to discuss financing your future business plans, our team is here to help.  We offer complimentary initial business evaluations. We have a network of lenders for acquisitions, refinances and construction projects. Our team is ready to guide you through the entire process.