How Matthews™ Facilitated the Sale of Legend Motel

Challenges

Matthews™ agents encountered several significant challenges that required strategic navigation and expertise to ensure a successful outcome for the Legend Motel property. The seller faced persistent operational issues from the initial purchase that hindered the motel’s efficient management.

The primary challenge was securing loan approval for the buyer. The bank required the buyer to either increase their down payment or cross-collateralize another property, adding complexity to the financing process. Another challenge was addressing the lackluster financial performance in the first and second years. These ongoing difficulties underscored the seller’s need to find a viable solution to divest from the property. However, by showcasing the market trends and potential for improvement, Matthews™ was able to reassure the buyer and the lender of the property’s long-term viability.

Strategy

To successfully close the deal, Matthews™ adopted a strategic and targeted approach to address both the seller’s needs and the buyer’s requirements, considering the challenges. To overcome the loan approval, agents meticulously vetted the multitude of offers received, focusing on identifying the most probable buyer. Meanwhile, in the plan to mitigate the financial obligations, agents provided detailed pro forma and market information demonstrating that the property was underperforming relative to its potential.

The first step agents took was to ensure that the seller’s motivation to sell was clearly understood and aligned with the Matthews™ strategy. Due to operational issues, the seller’s need to divest provided a strong impetus to move the deal forward.

Secondly, agents closely considered potential buyers to identify a financially capable candidate and positioned them to meet the bank’s stringent loan requirements. The selected buyer had the necessary down payment and owned another property, which provided the option to cross-collateralize if needed. This dual qualification was crucial in securing the loan approval, as it satisfied the bank’s conditions for the SBA 7A loan.

Results

Matthews™ strategic approach and market expertise facilitated a smooth and efficient transaction that met the seller’s primary goal of divesting their interest in the motel. The seller was able to successfully cash out their remaining equity, thereby resolving the operational burdens they had initially faced and allowing them to reinvest the proceeds with their partners, achieving their financial objectives.

Agents secured the buyer’s necessary SBA 7A loan approval by identifying a financially capable candidate. The buyer’s ability to provide a significant down payment and cross-collateralize with another property in Washington ensured the bank’s requirements were met, facilitating a smooth financing process.

The success of this deal highlights Matthews™’ brand power and credibility in delivering client-centric solutions that meet and exceed expectations. Showcasing the ability to navigate complex situations and achieve favorable outcomes reveals the strength and effectiveness of the Matthews™ processes.