Financing the purchase and Conversion PIP of Hotel in California
Projection projects where the hotel’s current profit is insufficient for servicing the proposed loan are possible if there are multiple strong guarantors or additional collateral. In this case the buyer’s plan was to acquire the Rodeway Inn and convert it to a Motel6 and a Studio6. Even though SBA 7a loan is utilized for these type of projects, even structuring a loan through this program is not an easy task. Specially when there is a 1031 transaction as was the case in this project, the pressure of completing the project becomes much higher as a chain of 1031 transactions all have dependency on each other. Scientific Capital was again able to prepare a strong presentation for this client and this project and to present it to the right set of lenders to be able to complete this transaction.
Ramin: Your experience in finance industry was invaluable to me since you knew what was needed from me before we started. Your contacts were very helpful in order to get this project financed. This being my first time going with a loan broker, I was very satisfied and relieved that I didn’t have to go through with so much paperwork even though we did so much anyways. It could have been worse. So thank you for all the help with this project and more to come in future.
Nrupen (Nick) Patel