Comfort Suites, an upper midscale chain, offer opportunities and challenges for potential buyers. Lenders can be cautious with all hospitality loans; upper midscale chains require particularly careful underwriting. Our network of lenders wants to ensure that the properties have made it through the toughest parts of the pandemic. In addition, new businesses should have a positive cash flow and potential for steady or even increased revenue.
The entire GRP Capital team worked together to close this Florida Comfort Suites. Our clients were ready to take on this upper midscale chain. So we worked with the clients to prove that this property was worth the asking price, as well as shoring up the appraised value. As a result, the lenders approved the loan. GRP Capital President Rick Patel stated, “This loan was complex and required a lot of attention and focus on the part of our clients and our team. I was very pleased that the loan closed in time for our clients to take advantage of the latest stimulus package. I feel confident that the new owners will be able to activate their management plans in order to make their new property profitable with strong cash flow.”
Purchasing A Comfort Suites or Other Upper Midscale Properties:
• Consider Carefully How Much to Offer: Buyers need to be able to prove that the property is priced right. We encourage our clients to talk with us prior to making an offer. In this way, we can offer guidance and be sure that the offer is fair for everybody
• Shore Up the Appraised Value: Many times, buyers are interested in purchasing properties that are performing below the market, as these are often priced more affordably. However, lenders require assurance that properties will be profitable. Prepared clients should create strong business plans, including pro formas which address why the property isn’t reaching its profit potential.
• Demonstrate Your Borrowing Strength: Potential borrowers should have three months of funds for equity injection. These monies should be from accounts that are easy to trace, without large movements of money moving into them and free of borrowed funds and large gifts.
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.