This was an SBA 7(a) loan used for the purchase of a Magnusson property. The challenge of this loan was that the buyer had a executing a lease purchase option on the property and the negotiated sale price in the lease purchase agreement was much less than the value of the property today. Also, the property was older and was very large. The buyer was able to gather the documentation necessary to support his injection towards the purchase. Also, the bank was able to do a loan for the full payoff of the loan given the strong appraisal value based upon present market value.

Client Comments:

“I recently completed the purchase financing of a hotel property. During the process I found Shawn to be extremely capable. He helped find a viable lender then guided me from application to closing. Shawn was indispensable throughout the entire process. I am a repeat customer and this is the second loan I have done with him. I recommend HBC to anyone seeking an SBA loan or conventional financing.”

Raj Patel-Franchise Hotel Owner

This was a 504 Loan used for the ground up construction of a Studio 6. The challenge of this loan was the simple fact that this was a new construction in an area that was very remote an extremely reliant upon occupancy from local oil drilling companies. Bank’s are extremely conservative and highly unlikely to do loans in oil areas in TX, OK, WY. However, we were able to mitigate the banks concerns with a favorable loan structure that worked for both the buyer’s and the bank. We also experienced difficulties in the land survey, which we were able to work through with the bank.

This was an SBA 7a loan that was used for the purchase of a small Travelodge hotel located in IN. The challenge on this loan was that the buyer’s had limited hotel management experience (Less than 3 years), the property was exterior corridor, the property was in a remote location and the property was very small. Many lender’s will only do hotel loans for properties that are located in major metropolitan cities and/or in the suburbs of these highly populated cities. However, the bank’s that we work with do not decline loans based upon where they are located, rather, they concern themselves with the properties historical cash flow most of all.

Client Comments:

“After talking with many lending professionals I had been let down in the end. But after talking to Shawn I got re-energized about my chances. Shawn is so dedicated, knowledgeable, confident and positive about his ability to help it is hard not to feel you are in good hands. He does not charge any money at all and is very professional. I was a first time buyer and he took the time to explain everything. Shawn lined me up with title company, land surveyors, property insurance, etc. If you need an SBA loan then do not waste your time and give Shawn.”

Malay Patel – Hotel Owner

This was an SBA 7a loan used for the purchase of an older exterior corridor independent property to be converted to a franchise hotel. The challenge on this loan was to obtain financing on an older exterior corridor independent property. Several lenders in today’s market place either do not do hotel properties at all and/or have several restrictions on the types of hotels they will finance. For example, most lender’s will not finance independent (Non-Franchise hotels) or exterior corridor properties. Some lenders will not finance hotels that are less than 10-15 years old. However, the bank’s we work with will finance all property types (Independent or Franchise) without any set property age restrictions. The bank’s we work with are more concerned with the present condition of the property and above all else it’s ablility to service the proposed debt. In fact our lender’s are very unique as they will allow the buyer’s to close on the property as an independent and completely manage the PIP themselves should they wish to do so. Many bank’s want to manage the PIP conversion to ensure it is done quickly, however, it can be a very costly and painstaking process for the buyer and their contractors.

Client Comments:

“Working with Shawn is like an easy walk through. He makes the process of loan closing so simple and comfortable. He’s dependable when it comes to confidentiality and ensures that his clients are treated the best. His patience and professionalism made the process easy. Shawn made sure he tailored the process to match my time constraints and got me great terms. All in all he turned a stressful process into an enjoyable process.”

BK Patel – Hotel Owner

This was an SBA 7a loan used for the purchase of a Super 8 hotel that was then converted to a Motel 6. The challenge on this loan was that the buyer group consisted of several partners, however, some of the partners did not want to personally guaranty the loan and/or did not have the SBA loan eligibility left to use SBA financing (The SBA only allows $5,000,000 in SBA loans to one borrower). We were able to guide the buyer in structuring their loan that helped make the loan eligible because of our excellent underwriting background. Another challenge on this loan was that the seller closing contingency date was no greater than 60 days. We quickly designed a loan structure that would work with the borrower and bank and were able to quickly close the loan to meet the borrowers hard closing deadline with time to spare.

Client Comments:

“It was a pleasure to work with Shawn on one of my recent closings. His professionalism and most of all honesty on what we can do and cannot be done was great. I have worked with many lending professionals and his quick response made our transaction move very fast compared to others. Some of my projects are a bit more difficult than most of his deals I am sure, however, he got in done with great terms as well!”

Amul Patel – Hotel Owner

This was an SBA 7a loan used for the purchase of a Ramada property. The challenge this loan was the borrower wanted extremely low interest rate that was nearly 0.50% below typical market interest rates. We were able to leverage our own high volume relationship with the bank to obtain the borrower these exceptional interest rate terms requested. Also, another challenge on this loan was that the franchisor required an extensive PIP requirement to maintain the flag of the property. We were able to assist the buyer by using our extensive franchise contacts to help coordinate buyer negotiations with high level managers to help aide them in getting a reduction in the amount of PIP being required by the franchisor and also to get great reduction in franchise royalty fees over the first few years. This greatly helped the borrower preserve some of their cash that was going to be used towards paying for PIP and towards royalty fees in the first few years. The client was then able to instead spend their cash on expenses that immediately help to increase the overall revenues and profit such as new marketing and some minor curb appeal improvements such as landscaping.

Client Comments:

“It was an absolute pleasure working with Shawn on one of my recent hotel transactions where I was the transacting broker. Shawn not only provided great services including getting good terms for the borrower but also liaised with Franchisor, seller and the title company that resulted in a smooth closing. I highly appreciated his timely response and him going out of his scope to make the deal happen.”

Chris Gomes – Marcus & Millichap, Associate Director National Hospitality Group