Financial

Ohio Based Investment Group Announces New Funding Program for New 'Flagged' and Independent 'Boutique' Hotel Projects, Acquisitions And REFIs!

Most hotel ownerships have endured three years or more hearing the word 'NO!' from banks and commercial lenders with regard to their proposed new projects.

JRCA Group Many owners are desperately seeking to refinance out of short term construction-to-mini perm loans at a time when even stabilized values are about equal to or even less than the original cost of construction. In plan English, an insufficient equity margin needed to quality for a conventional refinance..

The Dayton, Ohio JRCA Group have retained the services of Charleston, SC based commercial finance consultant Richard Cooper and his Cranford, NJ based business partner, Danielle Vareltzis, to review new hotel development projects, as well as applications for hotel purchases and for refinancing with the objective of identifying opportunities that would meet Program guidelines.

The offered Program is certainly a welcome departure from traditional lending in that it is non-recourse with fixed rate interest-only payments at 5.75% for 36-months or 6.75% for 60-months.

Two versions of the Program are available. One is a “pre-set” $5-million which requires a 6% cash participation from the borrower (= $300K) and the other version has a minimum $10-million funding with a ceiling of $200-million and requires that the borrower come in with a cash participation equal to 4% of their funding request. With both Programs, the client is required to pay a $200K Commitment Fee upon their acceptance of Terms and Conditions and the lender’s Loan Commitment.

The entire process if relatively fast with most transactions projected to close within 35-business days from the date that the client formally accepts the offered Terms and Conditions.

A formal MAI Appraisal is not required because JRCA’s Underwriters look at Broker value opinions. Approval decisions are greatly dependent on the lender’s drill-down on market conditions and trends, present operating financials (if applicable) and the 5-year Pro-Forma.

For Program Guideline information please send an email request to: dvareltzis@ verizon.net or coopercash@ earthlink.net

For additional information contact Richard Cooper, Cooper Consulting Group, 843-559-7099 (coopercash@ earthlink.net) or Danielle Vareltzis at 973-650-3190 (dvareltzis@verizon.net)



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