Financing the purchase and Conversion
PIP of Hotel in California
Rodeway Inn Conversion to Studio6
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.