Before you seek financing. Clients rely on our capital markets experience to inform their decision on whether to borrow, when to do so and what the likely terms will be and look at “stress scenarios” under different financing terms and property performance levels relative to macro economic and local market changes.

We prepare our clients. The asset’s financial statements must be scrutinized to arrive at the most advantageous cash flow for lender underwriting purposes.  We will review your financial statements in detail and apply qualified cash flow adjustments consistent with standard lender underwriting criteria to increase you loan amount and/or improve loan terms.

We educate the lenders. Utilizing our actual banking and legal experience, we go beyond the basic asset and market research typical of other brokers to identify issues that will have a material effect on the lender’s offered loan terms and ultimate credit approval decision. We present a Financing Memorandum to prospective lenders that enjoys immediate credibility as it speaks their language, addresses their concerns and delivers the right information to obtain an expedited response.

We manage a competitive process. We develop strategies that address and mitigate potential credit concerns before presenting the opportunity to lenders and address those that are uncovered in the due diligence process.  We know the issues each prospective lender will raise, have a tailored solution ready to propose to minimize the effect on quoted interest rate and loan amount and we seek to eliminate last minute surprises that could derail your financing.

After obtaining a signed lender term sheet many mortgage brokers are not heard from again until closing when they reappear to collect a fee. This is understandable because few have the actual banking and legal experience to add value to the financing process. The ARHospitality Capital Difference - we have the experience to add value for our clients throughout the process.  

We actively “quarterback” the financing all the way through to closing. Clients and Lenders alike appreciate our ability to:

• Manage the lender document production and due diligence process ensuring timely and accurate responses to lender requests.
• Provide primary point of contact convenience to address lender requests & questions and ensure responses are accurate and do not unnecessarily impair the credit profile of the loan.  If you don’t understand what the lender is asking and why then your response typically does more harm than good.
• Coordinate and streamline the sharing of information with counsel and 3rd parties while ensuring the efficient utilization of transaction counsel – deals can frequently be “over lawyered” and slow or impair the process with no real benefit to the borrower.
• Monitor capital markets spreads and terms – a banker won’t be able to re-trade you on terms just to increase their profit margin.  We understand what’s a re-trade and what is a change to maintain the lender’s original quoted “economics” due to market or asset changes.
• Ensure your banker is prepared, their presentation is complete and the loan is ready for the banks credit committee review and approval. There should be no “surprises” at this point.
• Provide you feedback on the financing process from a bank’s and their counsel’s perspective. You will have an understanding of the financing process that other brokers simply do not have the professional background and experience to provide

Our firm continues to support its clients throughout the lifecycle of their loan.  There are many issues that can arise during the term of the loan requiring the expertise of capital markets professionals to successfully resolve them with your lender and other interested parties.  Whether it is an unexpected decline in revenue, changing brand affiliations, transferring an ownership interest, responding to confusing and often technical loan servicer notices on covenant violations or other issues involving your loan, we have successfully addressed each of these issues before. Assistance may include:

• Resolving notices of loan covenant violations such as Low DSCR Cash Traps
• Facilitating loan assumptions and guarantor substitutions upon sale
• Obtaining asset reflagging and repositioning approvals
• Assistance with curing technical defaults including violations of SPE Covenants
• Advising on transfers of member or partner interests & obtaining lender approval
• Facilitating the Lender’s release of Escrows, Reserves or Insurance Proceeds
• Working with your counsel to provide litigation support & consulting on securitization issues
• Advising on loan modifications & lender workouts