The
refinance of the 185 room independent hotel in Amarillo, TX last week
which took months to complete merits a review for my readers. The
refinance had to pay down the seller carry back and to consolidate it
with the first loan for a total loan of 4.5MM at 75% combined loan to
value with a first position SBA 7a loan of 4.1MM. Independent hotels
are harder to finance in our credit market but if the loan size is
larger then the other factors need to be favorable. Age of the
building, state of the hotel's upgrades and renovations, active or
absent ownership, market tier (primary, secondary, or tertiary),
state's economy as related to the hospitality, customer segmentation
(tourism vs transit and business), supply of new rooms in that market
or state, and even less significant factors such as the quality of the
financial documentation of the borrowers and the hotel and the online
reviews on google are all factors that if negative can make financing
an independent hotel very difficult.
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Hello Ramin ,
I am writing to thank you for all
your tremendous help guiding us through our recent Hotel refinancing
through SBA. Thanks again and really appriciate all that you have done
to get us through the whole daunting task of sba Loan proccess,
documentation and co-ordination of documents as well as communication
between Bank, SBA, and our partners, the attorneys, and others. Knowing
we could depend on you to respond quickly to questions and concerns
with accurate information made the process much easier. You provided
sound guidance when needed and patience when we required.
In this difficult economy, we understand the added difficulty of
securing refinance deals and very much appreciate the experience with
which you were able to accomplish the task. Thank you again and should
we find ourselves in need of loan assistance in the future, we will not
hesitate to call you.
Best Regards
Mike Sanin Singh
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