How do you get a smooth path to closing? Take a motivated seller, an organized buyer, an enthusiastic senior associate and add in our loan processor. What’s the result? Another quick closing is in the books.
GRP Capital Senior Associate Ryan Dumas was able to shepherd this hotel loan from letter of intent (LOI) to closing in just 41 days. Everybody involved in the sale did their part to make sure we had a smooth path to closing.
Submitting Needed Documents:
• The seller provided the documents necessary (typically financials and hotel statistics and any applicable leases).
• The buyer had to prove that he or she has an appropriate debt coverage. Our clients have to demonstrate the ability to contribute to the equity. They also have to be able to pay for business expenses that arise. In addition, the lender wants to know the the buyer has the appropriate management experience to supervise the operation of the new business.
• The lender also needs the appropriate documents about the business formation and licenses.
Submitting documents quickly allows the lender to underwrite the file quickly. Once the underwriter is satisfied with the documents, they don’t need to come back for more supporting documents and more updates. This keeps the document requests manageable for everybody.
What are Equity Verification Documents?
• Bank statements
• Stock and bond fund statements and/or money market accounts
• Closing documents/settlement statements from previously sold property
GRP Capital secured a fully amortized, 25-year permanent loan. As a result, our client was able to take advantage of continued low interest rates.
Our client was thrilled with the smooth closing. He has solid plans to increase profitability and is ready to follow his plan.
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.