Dharmendra patel successful hospitality business
Dharmendra Patel, entrepreneur, expanded his hotel business with Biz2Credit's funding support.
Iowa-based hotelier Dharmendra Patel has been in the hospitality business for just three years, yet his three hotels (a Days Inn and two Super 8 properties) have generated almost $1,200,000 in revenue for 2016.
Patel, however, wasn't always involved in hotel ownership.
"I had some experience working in hotels and wanted to get into ownership, but I needed money for a down payment," says Patel. "I initially took a corporate job and saved money in a 401K to go towards purchasing.
Though Patel's first hotel acquisition was funded via his personal savings and a seller note, the two subsequent acquisitions were funded with the assistance of Biz2Credit.
"The whole lending process went very well,"says Patel."I worked with Gabe and he knew exactly what to do with no questions asked."
In both subsequent acquisitions Biz2Credit was able to source working capital by leveraging the cash flow of Patel's existing hotels as a down payment to acquire the additional hotels. Once the down payment was in place, Biz2Credit was able to quickly facilitate an SBA loan for the remainder of the funds required to purchase each property.
His first two acquisitions were made possible through Biz2Credit's SBA lender platform, while his first property was purchased on a promissory note (higher interest rate, short term) which Biz2Credit is currently refinancing.
Initially, Patel was discouraged from getting into the hotel business by family and friends.
"I was advised not to go this route," says Patel. "But I said 'I know what I am doing and it is worth taking the risk',"
Though his initial investment may have increased, Patel wasn't worried. He went into ownership with a three-year plan.
"I look at my relationship with Biz2Credit as having a supportive business partner for two years,"says Patel. "Then, 100% of the business ownership is mine."
"In both subsequent acquisitions Biz2Credit was able to source working capital by leveraging the cash flow of Patel's existing hotels as a down payment to acquire the additional hotels. Once the down payment was in place, Biz2Credit was able to quickly facilitate an SBA loan for the remainder of the funds required to purchase each property."
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