Refinancing with PIP Funds for Motel with 80% LTV Conventional Loan in Virginia
Sourcing bank conventional loans for hotels has been very difficult after 2009 when banks can reach their concentration levels for hotels after putting just a few hotel loans on the books. However, obtaining one is rewarding for the hoteliers when considering the lower cost, fixed longer term interest rates, and simpler loan process (less documents required). Many brokerage firms simply jump on the SBA/USDA loans simply becuase those are far easier loans to place, the lenders are often national lenders, the process is streamlined, and the underwriting/processing of these lenders are structured for high volumen loan processing. The broker compensation is often from the lender making it easier to work with borrowers. However, Scientific Captial puts time and effort into sourcing conventional loans if it believes that the hotel is qualified for such loan. This is another sample of our effort in placing an 80% LTV loan for the refinance of the Super8 with added renvoations funds of over half million, working capital, and costs of the loan of over 100K all with a fully amoritzed loan of 25 years with 6 months of interest only period giving relief during the renovation phase with low fixed rate of mid 4%.
Our Other Projects With This Client
A major differentiator between us and the others is the loyalty of our clients. Here are the other hotels that we financed for this client not to mention a number of referrals that we have received from him.
Purchase of Holiday Inn Express of Mooresville, NC and assumption of CMBS loan
Purchase of Holiday inn Express and Springhill Suites, Morgantown, WV
Purchase of the Holiday Inn Express and Clarion of Fredericksburg, Virginia
Purchase of Holiday Inn Express of Stephens City, VA
Purchase of the Holiday Inn Express of Claypool, Virginia
Purchase of Super8 of Norton, Virginia
Purchase of Super8 of Claypool, Virginia
Purchase of Sleep inn of Walterboro, South Carolina
Purchase of Super8 of Lebanon, Virginia
Nirav Mehta one of the two parters of this Super8 in Lynchburg visiting us at the 2018 AAHOA tradeshow in Washington DC