Our clients are very experienced hotel owners and know the Minnesota market very well. They are excellent managers and are hands-on in all of their properties. But they needed assistance to find a lender willing to close a Minnesota hotel loan quickly. The reason: a 1031 exchange.
They contacted Senior Associate Ryan Dumas in order to complete the purchase of the land and the business at this suburban Minneapolis location.
Ryan worked with our team at top speed to get the loan out to lenders willing to close quickly. Ryan said, “These clients were really organized and ready to make this Minnesota hotel loan happen. We needed them to be extra responsive so we could utilize the 1031 money. It was a smooth closing, and they are owners of another property that will be very profitable under their management.”
1031 Exchange FAQS:
• What’s a 1031? A 1031 is a method by which you can use proceeds of the sale of one investment property for the purchase of another similar type of property. The 1031, however, has a time limit, but it does allow you to defer paying certain types of taxes, typically capital gains.
• Who Should Help Me? You need a competent escrow and title agent, who can handle multiple closings and who can keep the proceeds from the first sale in escrow. It’s very important that the proceeds from the first sale do not come into your pocket but go directly to this third party. We also advise all our clients to hire a knowledgeable attorney for all large transactions, this being no exception.
• How should I prepare? Be ready to provide all of the documents from “your side”. These would include your personal financial statement (which we will help you with). In addition, we’ll need information about other businesses you own (depending on your ownership percentage). Our loan processing team will give you updated checklists multiple times throughout the underwriting process, so we can accomplish what we need quickly.
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.
Tags
- hospitality loan ,
- hotel loan ,
- hotel refinance ,
- Minnesota loan ,
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