We arrange the purchase and PIP loan for
Ramada Inn of Greensburg, Pennsylvania
4.2 million SBA 7(a) loan
This hotel was taken back by the lender in lieu of the foreclosure. Due to the fact that the hotel financials were not available or reliable, Scientific Capital was able to obtain other historical financial information to satisfy the underwriting requirements and to complete the transaction. The choice of the documents as proof of income in these cases depends on the loan program used and the choice of the lender.
In the majority of cases where a hotel is being purchased from a lender the hotel does not cash flow and does not have historical information. The management company hired by the lender operates the hotel without focus on operations and the profitability and with the goal of keeping doors open until the hotel is sold. To finance any hotel that is owned by a lender, we are challenged on understanding the operations, analyze the expenses and determine the true and genuine expenses, and prove and to substantiate those expenses. Additionally, we need to substantiate and obtain legal documents that support the revenue presented by inconsistent documents received from the lender.
This financing that was structured at 80% Loan to Cost including $650,000 of PIP (Property Improvement Plan issued by the franchisor). The high LTC was a significant achievement considering the challenging parameters of this transaction including the fact that the sponsors were first time hotel buyers.
What our client think of us
We recently closed on the Ramada Greensurg, PA. It was a very complex deal and Scientific Capital Group was instrumental in financing this deal. Ramin Mostaan of SCG was referred to us by Industry leaders and he far exceeded our expectations. He ensured that we were hand held through the entire process. Right from helping us getting our Personal Financial statements prepared in the way the lenders would like to see to getting us ready for the interview with the lenders to finding the right insurance for the property, he helped us through and through.
The deal was complex as the property was bank owned and did not have certifiable Financial statements. He went out of his way to call up the local county office to get the use and sales tax information on the property for the past three years. It was not easy to do that but he made it happen. Getting the Use and Sales tax information was the key to verify P&L information , which could not be certified by the previous owners.
Ramin was available whenever we had any questions , whether it be weeknights or weekends. He has a very pleasing personality and he always ensured that our interest was protected at all times. It was a real pleasure dealing with Ramin and we would recommend him to anybody seeking Hotel financing.
The highlight of the deal was that it had to be done in 45 days and HE MADE IT HAPPEN well within our time frame by financing not just the property but also the accompanying PIP.
Thanks Ramin and SCG.
|See the Holiday Inn Express review by this client|
|See the Ramada of Cumberland review by this client|