Category Archives: Teamwork

In Your Corner: How GRP is Advocating for Borrowers

At GRP Capital, we shepherd a loan request from an idea to receipt of funds. This process requires a lot of work and is what keeps our team busy.

One of our chief responsibilities is advocating for borrowers. Even in the recent economic uncertain times, we have continued to advocate for our clients, and successfully closed loans.

How GRP is Advocating for Borrowers:

• Representing our Client Through the Appraisal Process: Every business and property has to be appraised by an independent third-party appraisal as part of the underwriting process. Recently, we felt that an appraiser didn’t understand the strong profitable business potential of our client’s business. The appraised value was far too conservative, due to the COVID-19 downturn. As a result of the low appraised value, the lender wanted to lower the loan amount.  Furthermore, the seller was unwilling to sell at the lowered amount. We were able to explain to the lender why the appraisal was inaccurate and advocate for a second appraisal.

• Convincing Lenders of the Fundamental Strength of the Borrower: We have developed strong partnerships with our network of lenders. We know that lenders are risk-averse. Therefore, we help to explain the fundamental strength of our borrowers (their ability to operate profitably and pay back loans) as well as the fundamental strength of the business they are funding. Our lenders are experts in financing. On the other hand, we try to become experts in our clients’ business plan, their challenges and opportunities.

• Saving Clients Money: We recently helped restructure a loan and saved months of payments for our client. The Small Business Administration is offering a six-month period of no payments for loans closed and fully disbursed by the end of September. We helped restructure a loan for a client who wanted to do a minor renovation. By not including  the renovation in his loan, his loan will be fully funded and disbursed by the September deadline.  As a result, he will reap the benefits of six months of no loan payments. Instead, he can use the working capital that we structured into his loan for this renovation. Understanding the funding timeline and working with our client to take advantage of the SBA program was invaluable to our client.

Every Client is Unique:

• Understanding Clients’ Funding Needs: Each loan is unique and each client is unique. We spend a lot of time getting to know our clients, so we can explain to a lender why their funding goals are appropriate. Because we don’t have a cookie cutter approach, lenders give us the time we need to advocate on behalf of our clients.

Borrowing Now:

Our Great Opportunities series discusses various aspects of the changing economic climate. There are still opportunities to secure funding for specific business plans. Read more about other aspects of finding funding in today’s climate here:

Becoming a Better Borrower

What Businesses do Lenders Like Now?

Still Funding Small Businesses: GRP Closes Liquor Store in Georgia

GRP Capital is pleased to announce that Vijal Suthar, a California-based Associate, originated an acquisition loan for a liquor store in Georgia. Keren Alpert provided closing services for the transaction.

GRP Capital secured a fully amortized, 25-year permanent loan for the borrower. The loan closed with additional working capital to float startup operations.

Associate Vijal Suthar noted, “Our client was organized and motivated to expand into Georgia. He was able to provide me with documents quickly, and we worked together to give the bank confidence that this business was capable of turning over steady, reliable income. Lenders are still willing to extend business loans post-COVID 19; however, the challenge is that lenders need reassurance. Because of GRP’s long relationship with this lender, we were confident that they would see the business the same way that we do.“

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 apply with different funding sources. Our experience allows our clients to execute on funding within our proven lending network.

Closing this loan demonstrates GRP’s ability to secure funding for business owners in expansion 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.

GRP Closes Another Hotel Loan, This One in New Mexico!

GRP Capital is pleased to announce that Ryan Dumas, Senior Associate at the Fort Myers based firm, originated a lease-to-purchase loan for an ABVI in the Rio Grande Valley of North Mexico. Director of Operations, Krishan R. Patel, and Processor, Keren Alpert, provided closing services for the transaction.

The GRP Capital team secured a fully amortized, 25-year loan for the borrower with minimal equity into the transaction.  The borrower came to Ryan Dumas through a local relationship.

Dumas noted, “I was pleased to enter this new territory with such an accomplished group of entrepreneurs. Both the buyers and sellers are organized, efficient and great communicators. This hotel is extremely popular during the yearly bird migration. The property will benefit greatly from the onsite management that the buyers will be able to provide.”

The folks at GRP Capital are particularly proud that this loan went from letter of intent to closing in 45 days. GRP was able to handle the complexities and organize all parties to close efficiently. We coordinated our efforts with a motivated managing partner. As a result, we were able to obtain the appropriate documents from the appropriate parties. Thus, we could schedule a closing date just in time for the holidays. A quick closing before the end of the calendar year was critical to all of the parties involved. We were happy to deliver.

GRP Closes Hotel Within the Greater Columbia Metro Area

GRP Capital is pleased to announce that Ryan Dumas, Senior Associate in the Fort Myers based firm, originated an acquisition loan for the Quality Inn & Suites in Lexington, SC. Keren Alpert provided closing services for the transaction.

GRP Capital secured a fully amortized, 25-year loan for the borrower. The loan closed with additional working capital to float startup operations. The borrower came to Ryan Dumas, as recommended by the seller’s nephew, who had previously partnered with Ryan on a past transaction.

In discussing this deal, Ryan Dumas said, “I loved working with these clients. They and the seller displayed great motivation. We all worked together to close this loan as quickly as possible. This market is showing lots of potential growth. The clients were ready to capitalize on this potential, just in time for the holiday travel season. We were very pleased to get the loan closed in December, as this was really important to all of the parties.”  

Real estate transactions often look simpler than they actually are. At GRP Capital, we offer a level of service to tidy discrepancies created over time. In this case, some last-minute title issues threatened to delay closing. These title issues, if not resolved, would have exposed the buyers to additional risk. By working diligently with the title company, the lender, and various attorneys, GRP successfully closed the purchase on time and within budget.

GRP Capital Names Rick Patel as New President

GRP Capital’s Board of Directors has named Rick Patel as its President. Mr. Patel is a founding partner of GRP Capital along with Greg Jeong. Jeong is now serving in a senior advisory capacity. Patel also served as the Chief Credit Officer for the GRP Capital Debt Fund.

Rick Patel is a leader in securing financing for entrepreneurs, both highly experienced ones and small business owners.  As a result, he is poised to lead GRP Capital as it continues its healthy growth. Patel anticipates company growth in real estate capital markets, small business financing, construction lending, GRP Capital Debt Fund development and investment and consulting and advisory services. Patel has over two decades of extensive community work in the hospitality and finance industries.

Upon being named as President, Patel stated, “I am humbled and excited to be leading our company as President. My work is incredibly rewarding as I see the realization of the dreams of our clients. The essence of our work is partnering with entrepreneurs who are seeking financing and expert advice. I am particularly proud of the growth of our GRP Capital Debt fund. As a result, the Fund is able to make a difference in the lives of our clients.”

Rick Patel has already begun his new duties. He is focusing on expanding the clientele, increasing funding ability to even more business sectors and developing innovative solutions for all financing issues. Additionally, Patel has been particularly active in expanding the network of lender partners in order to provide a range of options for clients.

GRP Closes Hotel in Northwest Texas

GRP Capital is pleased to announce the closing ofan acquisition loan for an EconoLodge in Lubbock, Texas. Keren Alpert provided closing services for the transaction.

GRP Capital secured a fully amortized, 25-year permanent loan for the borrower. The loan closed with additional working capital to float startup operations.

GRP Capital Managing Director Krishan Patel noted, “Our clients were ready to purchase this hotel. To be clear, this property was already healthy. But with active on-site hotel management by the clients, the trajectory is only upwards! Sometimes a property needs really active hotel management and oversight. I was happy to work with the clients to facilitate their plan to increase occupancy. In the end, we matched our client with a lender who shared their vision.” 

The GRP Capital Originations Team has years of experience in the hospitality industry. We are able to offer price guidance along with PIP budgeting, projection review, and analytical study. These complimentary services not only benefit the borrower in making a decision but also help to educate the lenders about our clients, their plans and goals.

For more information, contact our GRP Capital Team. 

GRP Closes Dual-Brand Hotel in Southwest Florida

GRP Capital is pleased to announce that Managing Director, Krishan R. Patel originated a refinance loan for a dual-brand hotel in Southwest Florida. Keren Alpert provided closing services for the transaction.

GRP Capital secured a fixed-rate term loan for the borrower. The borrower came to GRP Capital as an existing client with the company.

Krishan Patel discussed the complexities of this transaction. Patel noted, “Our client had a unique vision to expand his property and diversify revenue stream by creating different experiences at one location. To be clear, the dual-brand idea required specific debt tailoring, which we were able to accomplish. In the end, we were thrilled to close this loan in late December. Most importantly, all of our team members worked closely to make this happen.“

Dual- or tri-brand properties can create varied experiences for guests while optimizing expenses. With a multiple brand property, guests select from different room types at different price points. Meanwhile, management is able to utilize the same staff and reservations system. In other words, guests increase their choices and owners are able to realize operational savings. Do you have a multi-brand hotel project to discuss? Our team will be happy to answer your questions at AAHOA’s Successful Multi-Brand Hotel Development workshop on Wednesday, March 4th!

GRP Closes Hotel Loan in San Antonio

GRP Capital is pleased to announce that Ryan Dumas, Senior Associate at the Fort Myers based firm, originated an acquisition loan for a recently flagged SureStay Plus in San Antonio, TX. The sellers had converted this property to a SureStay Plus in late 2018.

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. Ryan Dumas knew both the buyer and seller and was happy to arrange financing.

Dumas noted, “This property is perfectly poised to be profitable at its current location. The seller had worked hard to convert the property into a SureStay Plus. Clearly, reflagging this hotel was a great decision, based on solid market research. As it turned out, the seller was unable to continue to manage the reflagged property and was ready to sell. The borrower is an experienced hotelier who is able to take this business to the next level.”

The full-service team at GRP Capital have years of expertise in the hospitality industry. As a result, we are able to provide guidance surrounding franchise selection and value-add improvements. If you are considering rebranding or upgrading your current franchise package, we can assist you. We can help in securing funding and creating a timeline for making these changes.