Refinance, PIP, and Cashout for Hotel with Conventional Loan in Minnesota
Thief River, MN
Many hotels in tertiary markets are only focused on their footprint for financing. Research by Scientific Capital indicates that lenders in some of these markets, even those that are regional, hesitate to offer financing to hotels outside of the immediate neighborhood of their branches. Hoteliers in these markets are having access to only few banks in their small towns. Once declined by these banks, the road to financing is closed. Those who need financing to resolve issues such as including large PIPs (property improvement plan required by the franchisors) and renovations, consolidating multiple loans, paying off ballooned seller carries, buying out partners, get ride of hostile local lenders, franchise conversions, etc. are at the mercy of those very few local lenders. In fact Scientific Capital was able to confirm that nearly no lender in Minnesota was interested in financing the subject hotel. They are all looking for perfect picture hotels or otherwise avoid them.
This Quality Inn needed to be refinanced to reduce high rates, avoid adjustable rates, consolidate multiple loans, cash out and pay off partner loans, pay off seller carry, and include some upcoming renovations all into a single simple conventional loan fixed for five years at very reasonable terms.
Scientific Capital was able to arrange the financing from outside sources and through a very smooth process, allow the clients to give stability to their operations through this conventional loan that will carry them for the next 10 years.
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Rajendra Patel visits us at the 2015 AAHOA