Tag Archives: quick closing

Florida Gas Station Loan Closes

Senior Associate Ryan Dumas is pleased to announce the closing of a loan for a gas station in central Florida. The loan funded at 86% LTV (loan to value), including inventory costs. These were very favorable terms, and we are proud of this high leverage loan. In addition, the interest rates were extremely competitive.

This loan closed, despite two hurricanes coming through the area. Fortunately, neither one materially affected the gas station.

Ryan had this to say about the deal, “We had a great team collaborating on this deal. My client was working with an experienced gas station broker and also a very responsive attorney. We were able to quickly get the documents needed from the sellers and the buyer. Therefore, our lender was motivated, too. As a result, the lender quickly approved and scheduled the closing. I hope we can work with lots of these guys again, as they are bright, experienced business people.”

How to Set Yourself Up for a Quick Closing

• Organized Documents: Sellers and buyers need to have their vital documents in tip-top shape. If you think a business loan is coming down the pike, gather your materials. Create your own personal financial statement. Organize documents about businesses you own, like tax returns and financials. Contact your accountant and get up-to-date financials on all your businesses, even if it is not your practice to receive monthly financials.

•Engage Professionals: Consult with an attorney and your accountant before making business decisions. Call our GRP Capital Team before you even sign a PSA. Ask your advisers, “Can I afford this? What is a reasonable price? Do you think the timing is good now?”

• Get insurance in place now: The commercial property insurance marketplace is very volatile right now. Start the process of finding insurance immediately and figure out if you can afford the costs. As soon as you can, obtain insurance certificates. Insurance issues are one of the prime reasons for delayed closing. Waiting to purchase insurance until the last minute usually backfires.

•Be Flexible: If a quick closing is a priority, be ready to pivot. If an appraisal comes in short, buyers and sellers may have to renegotiate. Sometimes we have to tweak the structure of the loan, especially for SBA approval.

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, purchase or engage in construction, 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.

All Weather Focus: Loan Closing No Matter What

Sometimes a loan closing poses unexpected challenges.

Our Florida-based clients were used to Florida weather.

But they weren’t counting on a hurricane during the underwriting process.

GRP Capital stayed focused during the entire loan process , as loan closing was the key to this refinance and partnership buyout.

As it turned out, the property had minimal damage and only suffered from some short-term power outages. The storm, however, delayed the appraisal and Environmental Site Assessment (ESA) reporting. When there are large storms, appraisers and environmental engineers are in high demand.

GRP Capital stayed in touch with the lender, the clients and all of the third party vendors to make sure everybody prioritized this closure.

GRP Capital President Rick Patel worked closely with the clients and the other stakeholders, too. Rick noted, “This loan closing was very important to the client partners. The ownership of the hotel had changed and we needed new financing with correct guarantors. With our guidance, the loan closed in a reasonable time, despite rather challenging circumstances in the region.”

What to do if your Property Has Damage from a storm?

• Communicate with your lender or ask GRP Capital to: Lenders and borrowers are not adversaries, but business partners in a way. Lenders deserve to know if your business has sustained damage, which will affect your bottom line. Lenders can be your advocates. Helpful lenders can suspend payments, extend a loan or even restructure a loan to include repairs that won’t be covered by insurance.

•  Combine storm damage repair with a PIP:  Believe it or not, storm damage can actually be an opportunity. If you have always wanted some renovation, consider the timing. Renovating during repairs might save you money. .

•  Hire an attorney: An attorney can work with your insurance company to protect your interests. He or she will also review any contracts. Most importantly, attorneys will remove any liens that are placed on your property during the repair process.

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.