June 1, 2015
By Bob Coleman
Editor, Mug Shot Monday
“I used my money first.”
“From the debt side, we’re finding it very easily. We’re able to find a debt financing piece of these purchases, and we’ll be looking for an equity partner soon.”
“‘For the most part, it’s been smooth sailing.”
All are quotes from Nik Patel in a profile by Hotel News Now published two years ago.
Nik Patel is the sole figure accused of an $180 million fraud of selling bogus USDA business & industry loans to Pennant Management. The investment firm closed its doors last week.
The purpose of my fraud coverage is to educate small business lenders of the warning signs of fraud.
One of the warning signs I see is a fraudster thinks they are the smartest person in the room.
That attribute doesn’t automatically equate with being a crook, it is simply a warning sign that should be be explored.
And I believe this attitude is apparent from the article. Patel’s plan was to buy hotel properties no one else would touch. He was the only one to have the “vision” and smarts to know which hotels to purchase and renovate throughout the country.
Writes Alissa Ponchione, “Patel said finding the right deal depends on each company’s plan and vision. For Alena, that means looking for hotels that others may see as hopeless cases.”
“No one wanted the (University of Central Florida) Holiday Inn for a long time, but we had a vision. We saw where the market was going, and we acted on that,” he said.
“When you have that vision, anything is possible.”