Financing the Purchase of Motel with SBA 7(a) in Pennsylvania
Scientific Capital was referred to the buyers through the seller of this hotel. The buyers spent over 3 months trying to obtain a conventional loan from a local bank, however, time ran out and the buyers were losing their good faith deposit and more importantly, losing a significant opportunity of acquiring this hotel which was just in their vicinity and an crucial part of their expansion strategy. This is the buyer’s first franchise acquisition who needed hand holding in all aspects of this acquisition. Fortunately, regardless of the level of the sophistication of a buyer, Scientific Capital tightly manages all aspects of the purchase such as handling the application and the approval of the franchise, the interaction with the attorneys, the insurance agent, the escrow and title, the third party inspectors such as the appraiser, the surveyor, etc. and any other party involved with the project. This means that from the starting point to the funding, Scientific Capital processed this loan in 45 days. Due to limited liquidity, it was important in this loan to include costs, franchise fee, working capital of 30K, and the PIP and FF&E costs into the loan which is how Scientific Capital.
The difficulties that the borrowers faced with this loan in the local market were 2016 drop of revenues of the Super 8 as it is observed to be the case for many hotels in the region, lack of experience of the buyers in the industry specially with the franchise operations, and other sponsorship issues that are not suitable for seeking financing from the local market.
Scientific Capital is able to present the particulars of a project that may look negative on the surface clearly to national lenders and find suitable lending sources that can understand the circumstance and close many hotel loans that otherwise fail to close in our industry.
Dear Ramin: It was a pleasure to work with you, you did such a wonderful job in a short period of time, it was not possible to get our loan in such as short time. You did it. You got us the approval and then closed on time as promised. If I have any need for a loan in the future, you will be the one i will call. I will highly recommend you to my hotelier friends and family.
Jitendra R. Patel
For our family’s first hotel purchase we got a chance to work with Ramin. He was very professional and processed this loan in a very short period of time as he had promised- in this project time was of essence and our hard requirement was to close in 45 days. One of our family friends and also the seller of the Super 8 both recommend him to us and every single word and complement about Ramin’s performance was proven to be true. I was really impressed with how Ramin handled everything to the end and I will sure work with Ramin again and do recommend to all the hoteliers to work with Ramin and am sure that they will be happy as I was.
Thank you Ramin for all your help. It was really great working with you and will talk to you on our next project.
I just wanted to say thank you for your excellent service as Hotel Mortgage Broker. You are definitely one of the best Mortgage Brokers that I know. I really appreciate your extraordinary service in helping me with the sale of my Super 8 in Pittsburgh by financing our buyer.
Vijay Patel of Johnstown, PA (Seller)