No Advance Fee Bridge Loans For Apartments, Office, Hotel

When time critical business transactions are at stake you can rely on Winston Rowe & Associates commercial hard money expertise. They are a national commercial real estate finance firm that does not charge upfront or advance fees. With their commitment to quality of service and unparalleled responsiveness allows them to meet deadlines of projects that must absolutely be funded.

Prospective clients with questions concerning their hard money loan programs can contact Winston Rowe & Associates at 248-246-2243 or visit them on line at http://www.winstonrowe.com

In addition to hard / private money solutions, Winston Rowe & Associates offers the best in traditional financing programs. When you call them with a loan scenario, they quickly assess what type of financing is appropriate for your situation. Then utilize their direct access to the most aggressive investor sources in the world to create a customized financing solution for clients.

COMMERCIAL HARD MONEY HIGHLIGHTS:

No upfront or advance fees
Commercial hard money loan amounts from $1,000,000 to $500,000,000
Private or hard money funds available for a quick close in 2 to 3 weeks
All property types considered including raw land
Reasonable fees and interest rates
1 day to three years financing
Financing in all 50 states

Winston Rowe & Associates understands that in this business very few funding requests will fit neatly in a box and therefore they always look forward to working with clients to identify a unique deal structure that can benefit from their hard money transactional financing programs.

They also have an excellent knowledge based free investor resource for commercial real estate investing, valuation and analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates has no upfront fee hard money loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Guide To Investing In Assisted Living Facilities Winston Rowe & Associates

Winston Rowe & Associates is a no upfront fee national boutique commercial real estate finance firm providing solutions for healthcare investors.

For more information about Winston Rowe & Associates financing options, you can contact them at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Overview:

Assisted living facilities, a healthy, safe and independent lifestyle for its residents, provide a combination of housing, personalized supportive services, transportation, meals, housekeeping, 24 hour supervision, and health care designed to meet the needs of people who require assistance with the activities of daily living. In the current financial crisis, healthcare businesses have emerged as one of the global top dependable business opportunities.

Consequently, owning an assisted living facility is a good practical business opportunity as well as a chance to help others in need. This article will discuss why it is a timely and financially beneficial business, the population it serves, funding sources for residents, proprietors and types of assisted living.

Growing US Senior Population:

Currently, more than one million Americans live in an estimated 20,000 assisted living residences. The Assisted Living Industry today, for the most part, caters to the top affluent 10% of the senior population of the country. This field has expanded rapidly from 1990 until 1997; then, overbuilding occurred in the field in 2002 and again in 2005. In 2007 the field started to expand again and in 2008 the field has expanded by individual entrepreneurs with smaller facilities that are in the 15-50 unit range. Niche, facilities continue to thrive and expand.  Another need which makes an assisted living facility a timely and beneficial business is the ageing Baby Boomer population. The average Baby Boomer is 65 years old today.

Who Does Assisted Living Facility Serve:

The typical assisted living resident may be young or elderly, affluent or low income, frail or disabled. A typical resident is a woman in her eighties and is either widowed or single. Residents may suffer from Alzheimer’s disease or other memory disorders. Residents may also need help with incontinence or mobility. Assisted living homes are not for people who need constant professional nursing care.

These facilities will provide services which include meals, housekeeping services, transportation, health promotion and exercise programs, personal laundry services, social and recreational activities, on-site salon, memory care or dementia services.  Further, these facilities may provides access to health and medical services such as emergency call systems, bathing, dressing, medication management and needed assistance with eating, walking and toileting.

Clients Costs & Finances:

Costs will vary depending on the level of care and services provided. Assisted living care may be paid for by a long-term care insurance policy, but most individuals pay the cost themselves, which is referred to as the term, private pay.

There are still more assumptions than known facts about where the money to pay for assisted living comes from. A recent study conducted by the National Investment Center for the Seniors Housing and Care Industries, reports that more than a third of residents receive some outside assistance, in the form of Supplemental Security Income (8.9%), Medicaid coverage (7.2%), payments from private insurance (3.2%), state assistance (2.8%), Veterans Administration supplements(.5%), or payments from Social Security, Medicare, Prisoner of War benefits, worker’s compensation, state aid, pensions, and the military.

Meanwhile, federal, county and state assistance programs are shifting more Medicaid funds from home health and skilled nursing to assisted living. Further, the survey indicates that residents receiving financial assistance have longer lengths of stay than private-pay residents, and that residents receiving state assistance stay the longest, on average 4.13 years.  

Winston Rowe & Associates has a variety of funding options available for investors starting or purchasing an assisted living facility.

HUD (Housing and Urban Development)
USDA (United States department of Agriculture) for facilities in rural areas.
SBA (United States Small Business Administration)
Private Capital & Institutional Financing
Facilities Vary in Size and Nomenclature

Winston Rowe & Associates also have an excellent knowledge based free investor resource for commercial real estate investing, valuation and analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates has no upfront fee healthcare financing in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

National Hard Money Apartment Building Loans No Upfront Fees

Winston Rowe & Associates a no upfront fee commercial real estate finance firm provides short-term hard money first mortgage real estate financing for multi-family properties, they specialize in time sensitive situations and clients that have credit issues.

If you would like to lean more about Winston Rowe & Associates, you can contact them at 248-246-2243 or visit them online at http://www.winstonrowe.com

Why use Winston Rowe & Associates:

No Upfront or Advance Fees
Close In 30 Days or Less With Complete Submission
Transaction From: $500,000 to $500,000,000
National Lending Platform
Acquisition, Refinance, or Renovation
Opportunistic Deal Solutions
Repurchase of Debt by an Owner at a Discount (DPO)
Debtor In Possession (DIP) Financing For Chapter 11

Winston Rowe & Associates has the practical experience, versatility and financial means to provide funding options for multi-family real estate transactions nationwide. Thier main emphasis is on revenue generating apartments that need immediate financing. At Winston Rowe & Associates, they will put their experience and resources to work for you, offering rapid, innovative financial options using reliability, and integrity.

As a service to prospective clients, Winston Rowe & Associates has Free Rea Estate Investor Resource loacated at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

Winston Rowe & Associates offers the best in traditional and private and hard money commercial real estate financing programs. When you call them with a loan scenario, they quickly assess what type of financing is appropriate for your situation. Then utilize their direct access to the most aggressive investor sources in the world to create a customized financing solution for clients.

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates has apartment building loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Types of Commercial Real Estate Loans Explained Winston Rowe & Associates

Winston Rowe & Associates a no advance fee commercial real estate finance firm has prepared this article to assist brokers and real estate investors with descriptions of the various types of commercial real estate loan programs that they offer.

If you would like additional information about Winston Rowe & Associates their telephone number is 248-246-2243, or prospective clients can visit them online at http://www.winstonrowe.com

Acquisition

 An acquisition loan is used to acquire commercial property using the loan proceeds. This can include improved lots to already constructed and operating property. Winston Rowe & Associates loan sizes range from $1M to $500M with 15 to 30 year schedules; variable and fixed interest rates available (verify current rates); purchases are 80% of purchase price; loan to value, 75% on most products; debt service coverage- apartments (multi-family) 1.15, commercial- 1.20; assumable for most scenarios; closing time- 30 to 60 days from the receipt of the complete package and supporting documents.

Acquisition and Development

Winston Rowe & Associates provides loans to both acquire and develop real property to an improved state. Voucher control is set up to disperse loan proceeds with interest only paid on the funds distributed. Their programs can typically go to 75% loan to cost or 80% loan to value, whichever is less. They can typically provide a 2 to 3 year loan term for the construction, a 3 year mini-perm loan to stabilize the project, and permanent financing at the end. The permanent financing will vary by property type but usually Winston Rowe & Associates can provide a 30 year amortization and 10 year fixed rate financing that is a margin range of 1.85 to 2.50 over the 10-year Treasury.

Asset Based

These are loans for any purpose whereby collateral is put up for security.

ASSET TYPES: Commercial Real Estate, Equipment, Assignable Assets, Stocks, Bonds, Sports Contracts, Precious Metals, Accounts Receivable, Cash, Fine Arts, etc.

TYPES OF LOANS: Acquisition loans, Bridge loans, Development loans, Gap financing, Interim financing, Mezzanine financing, Short-term credit resolution, Project rescue funds for emergency situations, Factoring of accounts receivable; L

Loan amounts from $1M to $100M.

Bankruptcy

Debtor in Possession  (DIP) financing on real property assets until institutional financing is available or the sale of the asset occurs these loans range from $1M to $25M.

Bridge Loan

A bridge loan is a loan that is used for a short duration of time until permanent financing is put in place. Bridge loans are a perfect solution to a timely acquisition or business opportunity because they allow a purchaser or investor to act quickly. These loans can be used for acquisition, buy-outs, foreclosures, cash out and construction purposes. It is a form of short-term financing made for 1 month to 12 months (extensions are possible); up to 36 months, up to 90% financing; loan range from $1M to $50M.

Construction

A construction loan is a loan used to construct a building or other improvements of real property, with the land and improvements as collateral for the loan. Construction reserve accounts are generally maintained to disburse the money as the construction progresses. Up to 80% of the cost of the construction is available depending on the improved value.

Hard Money

For the following loan purposes: Acquisition, Raw Land, Bridge Financing, Construction, Bankruptcy Discharge, Refinance, Equity Recapture, Pending Foreclosure, and Poor Credit / Late Pay etc. will be considered; after approval, fast funding in days, when needed, on any type of commercial real estate project; credit challenges not a problem, all requests will be considered; loan amounts: $1M to $100M per project; TIMING: Loan decisions can typically be made within 24 hours from the receipt of the required items and documentation needed by underwriting; after loan approval and depending on the attorney’s time to draw up the loan agreement/contract, funding can occur within 3 to 7 days or longer; LOAN TERM: 1 to 12 months or longer; LOAN TO VALUE: 50% or more, depending on the asset/collateral; INTEREST RATE: from 13% to 20%; Points can range from 6 to 10, depending on the specific property, the borrowers credit and the loan amount; Terms: The funding parameters, specific terms, timing, and costs will be based on the business analysis and overall risk assessment and strength of the project and the Principals. Since our sources are very competitive, the Principals’ project will receive the rate and terms that it deserves.

Mezzanine

A mezzanine loan is a loan that is subordinate to a primary lender but it is debt that gives the Client the ability to drive the total financing to a higher leverage level, as compared to traditional bank financing alone (typical CLTV is 85% to 90%; in some cases, up to 95%). Mezzanine financing has become a common methodology to secure supplementary financing for real estate acquisitions and development projects. A mezzanine loan can be a freestanding loan that can be used for an existing property/properties or for properties that are under construction and the mezzanine loan can be secured by a second mortgage or a pledge of partnership interests. This is typical in cases where the primary mortgage or construction loan equity requirements are larger than 10%. The mezzanine loan provides additional funding when the first mortgage is at the maximum loan amount; the mezzanine loan amount can be $1M and larger; the preference is $3M to $30M; larger transactions will be considered on a case-by-case basis.

 

Detailed Hard Money Loan Definition Winston Rowe & Associates

Winston Rowe & Associates is a unique type of commercial real estate finance firm, they do not charge any upfront fees like their competitors to review or perform due diligence for your transaction, because of this savvy investors have been turning to them for their financing needs.

If you would like more information about Winston Rowe & Associates, you can contact them at 248-246-2243 or visit them online at http://www.winstonrowe.com

Overview

A hard money loan is a specific type of financing in which a borrower receives funds based on the value of a specific parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution.

Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and not yet qualifying for traditional financing. Whereas hard money often refers to not only an asset-based loan with a high interest rate, but can signify a distressed financial situation such as arrears on the existing mortgage or bankruptcy and foreclosure proceedings are occurring.

Loan Structure

A hard money loan is a species of real estate loan collateralized against the quick-sale value of the property for which the loan is made. Most lenders fund in the first lien position, meaning that in the event of a default, they are the first creditor to receive remuneration. Occasionally, a lender will subordinate to another first lien position loan; this loan is known as a mezzanine loan or second lien.

Hard money lenders structure loans based on a percentage of the quick-sale value of the subject property. This is called the loan-to-value or LTV ratio and typically hovers between 50-65% of the market value of the property. For the purpose of determining an LTV, the word “value” is defined as “today’s purchase price.” This is the amount a lender could reasonably expect to realize from the sale of the property in the event that the loan defaults and the property must be sold in a one- to four-month timeframe. This value differs from a market value appraisal, which assumes an arms-length transaction in which neither buyer nor seller is acting under duress.

Below is an example of how a commercial real estate purchase might be structured by a hard money lender:

65% Hard money (Conforming loan)

20% Borrower equity (cash or additional collateralized real estate)

15% Seller carryback loan or other subordinated (mezzanine) loan

History of Hard Money

Hard Money is a term that is used almost exclusively in the United States and Canada where these types of loans are most common. In commercial real estate, hard money developed as an alternative “last resort” for property owners seeking capital against the value of their holdings. The industry began in the late 1950s when the credit industry in the US underwent drastic changes (see FDIC: Evaluating the Consumer Revolution).

The hard money industry suffered severe setbacks during the real estate crashes of the early 1980s and early 1990s due to lenders overestimating and funding properties at well over market value. Since that time, lower LTV rates have been the norm for hard money lenders seeking to protect themselves against the market’s volatility. Today, high interest rates are the mark of hard money loans as a way to protect the loans and lenders from the considerable risk that they undertake.

Cross Collateralizing a Hard Money Loan

In some cases the low loan to values do not facilitate a loan sufficient to pay the existing mortgage lender off in order for the hard money lender to be in first lien position. Because securing the property is the basis of making a hard money loan, the first lien position of the lender is usually always required. As an alternative to a potential shortage of equity beneath the minimum lender Loan To Value guidelines, many hard money lender programs will allow a “Cross Lien” on another of the borrowers properties. The cross collateralization of more than one property on a hard money loan transaction, is also referred to as a “blanket mortgage”. Not all homeowners have additional property to cross collateralize. Cross collateralizing or blanket loans are more frequently used with investors on Commercial Hard Money Loan programs.

Commercial Hard Money

Commercial hard money is similar to traditional hard money, but may sometimes be more expensive as the risk is higher on investment property or non-owner occupied properties. Commercial Hard Money Loans may not be subject to the same consumer loan safeguards as a residential mortgage may be in the state the mortgage is issued. Commercial hard money loans are often short term and therefore interchangeably referred to as bridge loans or bridge financing.

Commercial Hard Money Lender or Bridge Lender Programs

Commercial Hard Money Lender and Bridge Lender programs are similar to traditional hard money in terms of loan to value requirements and interest rates. A commercial hard money or bridge lender will usually be a strong financial institution that has large deposit reserves and the ability to make a discretionary decision on a non-conforming loan. These borrowers are usually not conforming to the standard Fannie Mae, Freddie Mac or other residential conforming credit guidelines. Since it is a commercial property, they usually do not conform to a standard commercial loan guideline either. The property and or borrowers may be in financial distress, or a commercial property may simply not be complete during construction, have its building permits in place, or simply be in good or marketable conditions for any number of reasons.

Some Private Investment groups or Bridge Capital Groups will require joint venture or sale-lease back requirements to the riskiest transactions that have a high likelihood of default. Private Investment groups may temporarily offer bridge or hard money, allowing the property owner to buy back the property within only a certain time period. If the property is not bought back by purchase or sold within the time period they Commercial Hard Money Lender may keep the property at the agreed to price.

Traditional Commercial Hard Money loan programs are very high risk and have a higher than average default rate. If the property owner defaults on the commercial hard money loan, they may lose the property to foreclosure. If they have exhausted bankruptcy previously, they may not be able to gain assistance through bankruptcy protection. The property owner may have to sell the property in order to satisfy the lien from the commercial hard money lender, and to protect the remaining equity on the property.

Legal & Regulatory Issues

From inception, the hard money field has always been formally unregulated by state or federal laws, although some restrictions on interest rates (usury laws) by state governments restrict the rates of hard money such that operations in several states, including Tennessee and Arkansas are virtually untenable for lending firms.

Commercial Lending Industry

Thanks to freedom from regulation, the commercial lending industry operates with particular speed and responsiveness, making it an attractive option for those seeking quick funding. However, this has also created a highly predatory lending environment where many companies refer loans to one another (brokering), increasing the price and loan points with each referral.

There is also great concern about the practices of some lending companies in the industry who require upfront payments to investigate loans and refuse to lend on virtually all properties while keeping this fee. Borrowers are advised not to work with hard money lenders who require exorbitant upfront fees prior to funding in order to reduce this risk. If you feel you have been the victim of unfair practices, contact your state’s attorney general office or the office of the state in which the lender operates.

Hard Money Rate

Hard Money Mortgage loans are generally more expensive than traditional sub-prime mortgages. However all mortgage loans are not necessarily considered to be a high cost mortgage. Generally a hard money loan carries additional risk that a borrower is aware of. Rather than selling the property a borrower will opt to keep the loan and if a lender is willing to assume some of the risk by offering a hard money loan.

Interest Rate on Hard Money

The rate is not dependent on the Bank Rate. It is instead more dependent on the real estate market and availability of hard money credit. Currently and for the past decade hard money has ranged from the mid 10% to 16% range. When a borrower defaults they may be charged a higher “Default Rate”. That rate can be as high as allowed by law which may go up to or around 25%-29%.

Hard Money Points

Points on a hard money loan are traditionally 1-3 more than a traditional loan, which would amount to 3-6 points on the average hard money loan. It is very common for a commercial hard money loan to be upwards of four points and as high as 10 points. The reason a borrower would pay that rate is to avoid imminent foreclosure or a “quick sale” of the property. That could amount to as much as a 30% or more discount as is common on short sales. By taking a short term bridge or hard money loan, the borrower often saves equity and extends his time to get his affairs in order to better manage the property.

All hard money borrowers are advised to use a professional real estate attorney to assure the property is not given away by way of a late payment or other default without benefit of traditional procedures which would require a court judgment.

Other Types of Similar Loans

Asset Based Loan – A similar type of commercial loan based on real estate, indicating the loan will be based upon a percentage of the properties appraised value, as the key criteria.

Private money – Refers to lending money to a company or individual by a private individual or organization.

Bridge Loan – A similar type of commercial loan based on real estate.

Non Conforming Loans – loans for non-conforming projects.

Commercial Loan – Standard, broad types of loans based on commercial property value.

Asset-based loan

An asset-based loan is a short-term loan secured by a company’s assets. Real estate, A/R, inventory, and equipment are typical assets used to back the loan. The loan may be backed by a single category of assets or some combination of assets, for instance, a combination of A/R and equipment.

Typical Borrower

True asset based or “Equity based” lending is easier to obtain for borrowers who do not conform to typical lending standards.

They may have no, little or terrible credit.

They may have little income to support the payments, and may need to rely on the loan itself to pay back the lender until the property is either sold, refinanced, or their income resumes.

They may also have little or no down payment on a large commercial purchase transaction, as would otherwise be required, because they are buying it under value.

They may have struck a deal with the seller to lend them the remaining balance of the purchase price, not covered by the first position mortgage.

Loan Terms

Percentage of Appraised Value

Asset based lenders typically limit the loans to a 50 or 65 loan to value ratio or “LTV”. For example: If the appraisal is valued at $1,000,000.00 a lender might lend between $500,000.00 and $650,000.00.

A borrower is more likely to default with little or no down payment, and has little invested making it easier to “walk away” from the deal if it does not go well. In the event of a default resulting in a foreclosure, the first lien position lender is entitled to repayment first, out of the proceeds of the sale. Exceptions may occur in the event of a “short sale”, where the property is overvalued and actually sells for less, and does not cover the loan. The lender can than sue the borrower for the remaining balance if it can be obtained. An asset based lender knows that and usually will feel content that at an average 60 LTV they have enough equity to use to cover any expenses incurred in the event of a default.

These expenses would include:

Past due interest on the loan they have given

Past due property taxes on the property if the borrower has stopped paying them also

Lawyer’s fees

Miscellaneous credit and collection fees associated with foreclosure.

Secondary financing

Allowing secondary financing is common on asset based lending programs. Asset based lenders may allow this, if they are content with the amount of equity remaining beyond their lien position (often first).

Some asset based lenders will allow a second mortgage from another lender or seller to occur up to the full amount of the property’s value, while others may restrict secondary financing to a specific Combined Loan-To-Value or “CLTV”. For example while they may lend at a 50 Loan to Value Ratio of the property value, they may allow secondary financing from another party for up to the full value, otherwise stated as 100 Combined Loan To Value Ratio. They may in some cases require that the borrower have at least 5% or more of their own funds…which would be expressed as a CLTV of 95. That would allow for up to 45% of the value to be financed by a secondary lender. The secondary lender is at a higher risk. A seller might take the chance in order to facilitate the sale of his property quickly and/or at full price.

Private money

Private Money is a commonly used term in banking and finance. It refers to lending money to a company or individual by a private individual or organization. While banks are traditional sources of financing for real estate, and other purposes, private money is offered by individuals or organizations and may have nontraditional qualifying guidelines.

Private money can be similar to the prevailing rate of interest or it can be very expensive. When there is a higher risk associated with a particular transaction it is common for a private money lender to charge a rate of interest above the going rate.

Private money lenders

There are private money lenders in virtually every state in the United States, seeking a chance to earn above average rates of return on their money. With that comes the risk that a private money loan may not be re-paid on time or at all without legal action. Private money is offered to Client in many cases in which the banks have found the risk to be too high.

Private money regulation

Private money lenders must comply with state and federal usury laws. They are not exempt from banking laws. Further, if the loan is made to a consumer, the private money lender may have a limit on how many loans they may make in a particular state, without being required to have a banking license.

Bridge loan

A bridge loan (also known in some applications as a swing loan) is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing.

Description

A bridge loan is interim financing for an individual or business until permanent or the next stage of financing can be obtained. Money from the new financing is generally used to “take out” (i.e. to pay back) the bridge loan, as well as other capitalization needs.

Bridge loans are typically more expensive than conventional financing because of a higher interest rate, points and other costs that are amortized over a shorter period, and various fees and other “sweeteners” (such as equity participation by the lender in some loans). To compensate for the additional risk the lender may require cross-collateralization and a lower loan-to-value ratio. On the other hand they are typically arranged quickly with relatively little documentation.

In real estate

Use

Bridge loans are often used for commercial real estate purchases to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a short-term opportunity in order to secure long term financing. Bridge loans on a property are typically paid back when the property is sold, refinanced with a traditional lender, the borrower’s creditworthiness improves, the property is improved or completed, or there is a specific improvement or change that allows a permanent or subsequent round of mortgage financing to occur. The timing issue may arise from project phases with different cash needs and risk profiles as much as ability to secure funding.

A bridge loan is similar to and overlaps with a hard money loan. Both are non-standard loans obtained due to short-term, or unusual, circumstances. The difference is that hard money refers to the lending source, usually an individual, investment pool, or private company that is not a bank in the business of making high risk, high interest loans, whereas a bridge loan refers to the duration of the loan.

Characteristics

Bridge loan interest rates are usually 12-15%, with typical terms of up to 3 years. 2-4 points may be charged. Loan-to-value ratios generally do not exceed 65% for commercial properties, or 80% for residential properties, based on purchase price.

A bridge loan may be closed, meaning it is available for a predetermined timeframe or open in that there is no fixed payoff date (although there may be a required payoff after a certain time).

Availability

Most banks do not offer real estate bridge loans because the speculative nature, risk, lack of full documentation, and other factors, do not fit the bank’s lending criteria. A bank that issued bridge loans might have difficulty justifying its lending practice to its investors and government regulators. Bridge loans are therefore more likely to come from individuals, investment pools, and businesses that make a practice of the higher-interest loans.

Examples

A bridge loan is often obtained by developers to carry a project while permit approval is sought. Because there is no guarantee the project will happen, the loan might be at a high interest rate and from a specialized lending source that will accept the risk. Once the project is fully entitled, it becomes eligible for loans from more conventional sources that are at lower-interest, for a longer term, and in a greater amount. A construction loan would then be obtained to take out the bridge loan and fund completion of the project.

A consumer is purchasing a new residence and plans to make a down payment with the proceeds from the sale of a currently owned home. The currently owned home will not close until after the close of the new residence. A bridge loan allows the buyer to take equity out of the current home and use it as down payment on the new residence, with the expectation that the current home will close within a short time frame and the bridge loan will be repaid.

Non-conforming loan

A non-conforming loan is a loan that fails to meet bank criteria for funding.

Reasons include the loan amount is higher than the conforming loan limit (for mortgage loans), lack of sufficient credit, the unorthodox nature of the use of funds, or the collateral backing it. In many cases, non-conforming loans can be funded by hard money lenders, or private institutions/money. A large portion of real-estate loans are qualified as non-conforming because either the borrower’s financial status or the property type does not meet bank guidelines. Non-conforming loans can be either A-paper or sub-prime loans.

The flexibility of private money can allow for a much wider range of deals to be funded, although more detailed and substantive collateral and documentation may be required by a lender.

Selecting a Non-Conforming Lender

Borrowers should select non-conforming lenders in the same careful way they would shop for any other loan. Look for good rates and especially a good customer service rating. Rates for non-conforming lenders are typically higher than those for banks, but terms are more flexible and loans more easily attainable. Many companies advertising non-conforming loans are brokers who refer the loans requests they field to lenders.

Types of Non-Conforming Loans

Commercial non-conforming loans are also known as hard money loans, and comprise a large portion of all non-conforming loans. They are used to fund industrial and retail projects like RV parks, theatre complexes, gas stations, medical centers and more. Many commercial non-conforming loans are bridge loans.

Residential non-conforming loans are strictly regulated, usually with much higher rates than banks. Some states have legal limits against non-conforming loans for residential real estate.

Winston Rowe & Associates has an excellent knowledge based investor resource for commercial real estate valuation and market analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

At Winston Rowe & Associates they focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning loan products that best achieve our customers’ goals. Their professional staff is dedicated to streamlining the loan process and providing unsurpassed lines of communication.

Winston Rowe & Associates

31408 Harper Ave

Suite 147

Saint Clair Shores MI 48082

248-246-2243

Winston Rowe & Associates has no upfront free commercial loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Direct Shopping Center Loans Nationwide No Advance Fees

Many shopping center investors receive a Letters of Interest for financing with a very large advance fee in the thousands of dollars just to have someone look at their deal and process their transaction.

If you would like more information about Winston Rowe & Associates, you can contact them at 248-246-2243 or visit them online at http://www.winstonrowe.com

Winston Rowe & Associates is a unique type of commercial real estate finance firm, they do not charge any upfront fees like their competitors to review or perform due diligence for your transaction, because of this savvy investors have been turning to them for their financing needs.

They have shopping center financing for refinance, purchase, or new construction, with
financing solutions for both large and small shopping centers

No Upfront or Advance Fees
Shopping Center Financing from $500,000 to $500,000,000    
Competitive Loan Rates and Terms  
Long Term Financing Solutions  
Shopping Center Loan for Purchases, New Construction and Refinancing
United States Only Please

Winston Rowe & Associates has an excellent knowledge based investor resource for commercial real estate valuation and market analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

At Winston Rowe & Associates they focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning loan products that best achieve our customers’ goals. Their professional staff is dedicated to streamlining the loan process and providing unsurpassed lines of communication.

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates has no upfront free commercial loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Who Is Winston Rowe At Winston Rowe & Associates

Winston Rowe & Associates is NOT a United States Securities Dealer or Broker, Depository Bank, Lender or U.S. Investment Adviser. Winston Rowe & Associates is a business name used for business trade name and business identity purposes and is NOT a real person living or dead.

The use of trade names and company identities is a well established practice throughout business in the United States of America; such examples include without naming names because of trade mark infringement are, fast food restaurant chains, national food companies, consumer product companies automobile manufacturers and house hold washer and dryer manufacturers.

Winston Rowe & Associates consulting practice works with a number of banks, private investors, capital sources and hard money private lenders that do in some cases charge fees for updated; reports, surveys, appraisals, engineering and legal fees as part of their normal course of business and pursuant to their corporate policies.

Winston Rowe & Associates is paid a commission for its consulting services, which is a percentage of the gross financing amount pursuant to the executed Letter of Interest. This is paid from escrow at closing, Winston Rowe & Associates does not charge upfront fees.

If a clients reporting requirements are current, then generally there are no fees charged to the client in advance.

These costs and fees are paid directly to the said entities, not to Winston Rowe & Associates. Furthermore Winston Rowe & Associates is not paid a portion or percentage of costs or fees paid to a capital source(s) except Winston Rowe & Associates agreed upon commissions from escrow.

Winston Rowe & Associates capital sources will issue a firm commitment or term agreement prior to any fees paid.

Commercial Mortgages Shopping Malls No Upfront Fees

Winston Rowe & Associates provides commercial mortgages for shopping centers nationwide with no upfront fees. They have very competitive permanent loans, fast funded private money loans, equity and structured commercial portfolio repositioning.  

If you need your shopping mall or commercial real estate mortgage closed fast, then contact Winston Rowe & Associates at 248-246-2243 or visit their website at http://www.winstonrowe.com

As a boutique commercial real estate consultant, providing mortgage banking services  with a core focus on commercial mortgage loans over $2 million, with a diverse product mix, an innovative commercial lending platform.

If your project meets the criteria below, they can help you find competitive shopping center financing.

Shopping Center Financing from $2 Million Dollars
Competitive Loan Rates and Terms  
Long Term Financing Solutions  
Shopping Center Loan for Purchases, Refinancing and Bank Cram Downs
United States Only
No Upfront Fees

They always welcome borrowers with income or credit issues.

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates also provides hard money loans in the following states, with no upfront fees.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Investing Guide For Apartment Buildings Winston Rowe & Associates No Upfront Fees Loans

Winston Rowe & Associates a no upfront fee commercial real estate finance firm understands that picking the right apartment building investing strategy in the beginning will go a long way towards your success in the long run.

To speak with an apartment building specialist you can contact Winston Rowe & Associates directly at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Economy of Scale:

An economy of scale is when you increase the efficiency of your business because you reduce expenses by buying in bulk.  In the case of buying apartment buildings, a 6-unit apartment building roof replacement expense would typically cost just a little more than a single family home roof replacement.  While your expenses for that roof replacement are similar, the income from the 6-unit would be much higher.  The economies of scale on your 6-flat apartment house would be much better than your single family investment.

Pick Quality Apartment Buildings:

Buy properties that will have positive cash flow from the start, based on the current income and all of your projected expenses including management. If the current owner doesn’t have management, that is his problem. You are an investor, not a manager, and a good income property should pay for management and still produce positive cash flow.

Detailed Property Inspection:

Do an interior inspection to learn about the place, the tenants, and any problems that you will have to fix in the coming months or years. Look for pests, water and fire damage, as well as obvious “problem tenants. Are there any empty apartments that are listed as occupied? Use professional inspectors as needed for pest inspections and safety inspections.

For the exterior inspection, you will want to first walk around and take notes. Watch for anything that looks unusual or in need of repair. Then you can get professional inspections, if necessary. You want to verify that the electrical and plumbing systems are up to date and meet current codes. You also want to get an estimate on how many years of use the roofing has left. You’ll look at driveways, landscaping, and exterior paint condition.

Due Diligence Investigation:

Here’s a simple definition of the term: “Investigation and verification of the details of the material facts for a particular investment.” You can start this process before you make an offer, but you should also have clauses in the offer that allow you to have inspections done, and reviews of the books and certain documents.

Verify The Business Income:

You’re buying a business; make sure it makes economic sense. Get the last 36 months income and expense statements, business tax returns with all schedules, all of the seller’s title paperwork, check the County Register of Deeds for liens,  judgments or back taxes and look for anything unusual, like expenses that are too low or income that seems too high. Review the rent roll, and find out if the rents are over or under the market rates for the area. If there are employees, look at the payroll records for any surprises.

Apartment Building Financing:

Savvy apartment building investors have been turning to Winston Rowe & Associates because they have a core focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning loan products that best achieve their client’s goals. Their preemptive problem-solving approach is perfect for clients with credit and time sensitive issues.

Winston Rowe & Associates has no upfront free commercial loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode

No Upfront Fee Commercial Loan Check List Apartments Shopping Center Office Buildings

Commercial Loan Check List

Winston Rowe & Associates has prepared this article to provide general guidance as it pertains to commercial mortgage applicants supporting documentation checklist for apartment buildings, office buildings, shopping center and hospitality.

To speak with a commercial real estate finance specialist you can contact Winston Rowe & Associates directly at 248-246-2243 or visit them on line at http://www.winstonrowe.com

General Supporting Documentation Used For Commercial Loans:

3 most recent years tax returns, personal and business
Extensions for any filings
3 months most recent bank statements, personal and business
Personal financial statements updated within last 60 days
Year-to-date business operating statements-
Year end business operating statements if business tax returns are on extension
Personal resume
Property management resume, or letter of credentials
Letter of explanation for any derogatory credit, including: slow pays charge-offs liens, judgments, child support, etc.
Schedule of real estate holdings
Subject property rent roll
Subject property leases
Subject property income and expense statements, including year end and year-to-date
Commercial Mortgage Loan Purchase Documentation
Valid purchase contract
Selling agent or individual contact information
Verification of escrows
Property insurance information
Title policy
Survey
Property insurance information

Winston Rowe & Associates has a core focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning loan products that best achieve their client’s goals. Their preemptive problem-solving approach is perfect for clients with credit and time sensitive issues.

Winston Rowe & Associates has no upfront free commercial loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Investing Guide For Apartment Buildings Winston Rowe & Associates No Upfront Fees Loans

Winston Rowe & Associates a no upfront fee commercial real estate finance firm understands that picking the right apartment building investing strategy in the beginning will go a long way towards your success in the long run.  

To speak with an apartment building specialist you can contact Winston Rowe & Associates directly at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Economy of Scale:

An economy of scale is when you increase the efficiency of your business because you reduce expenses by buying in bulk.  In the case of buying apartment buildings, a 6-unit apartment building roof replacement expense would typically cost just a little more than a single family home roof replacement.  While your expenses for that roof replacement are similar, the income from the 6-unit would be much higher.  The economies of scale on your 6-flat apartment house would be much better than your single family investment.

Pick Quality Apartment Buildings:

Buy properties that will have positive cash flow from the start, based on the current income and all of your projected expenses including management. If the current owner doesn’t have management, that is his problem. You are an investor, not a manager, and a good income property should pay for management and still produce positive cash flow.

Detailed Property Inspection:

Do an interior inspection to learn about the place, the tenants, and any problems that you will have to fix in the coming months or years. Look for pests, water and fire damage, as well as obvious “problem tenants. Are there any empty apartments that are listed as occupied? Use professional inspectors as needed for pest inspections and safety inspections.

For the exterior inspection, you will want to first walk around and take notes. Watch for anything that looks unusual or in need of repair. Then you can get professional inspections, if necessary. You want to verify that the electrical and plumbing systems are up to date and meet current codes. You also want to get an estimate on how many years of use the roofing has left. You’ll look at driveways, landscaping, and exterior paint condition.

Due Diligence Investigation:

Here’s a simple definition of the term: “Investigation and verification of the details of the material facts for a particular investment.” You can start this process before you make an offer, but you should also have clauses in the offer that allow you to have inspections done, and reviews of the books and certain documents.

Verify The Business Income:

You’re buying a business; make sure it makes economic sense. Get the last 36 months income and expense statements, business tax returns with all schedules, all of the seller’s title paperwork, check the County Register of Deeds for liens,  judgments or back taxes and look for anything unusual, like expenses that are too low or income that seems too high. Review the rent roll, and find out if the rents are over or under the market rates for the area. If there are employees, look at the payroll records for any surprises.

Market Research and Financial Analysis:

Winston Rowe & Associates has an excellent knowledge based investor resource for commercial real estate valuation and market analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

Apartment Building Financing:

Savvy apartment building investors have been turning to Winston Rowe & Associates because they have a core focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning loan products that best achieve their client’s goals. Their preemptive problem-solving approach is perfect for clients with credit and time sensitive issues.

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates has no upfront free commercial loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, MaineMaryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

 

Apartment Investing Tips Winston Rowe & Associates No Upfront Fee Loans

Winston Rowe & Associates understands that investing in an apartment building is a serious matter and requires a lot of time, knowledge of the minutest details and other property implications to decide on the best possible deal.

To speak with an apartment building specialist you can contact Winston Rowe & Associates directly at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Facilities Costs:

There are several things to consider when buying an apartment building; of these utilities is a particularly important part. For example, if the apartments do not have individual electric meters then you may have to pay all the electricity bills which is not an ideal scenario when renting out a place. In this case, if you do not want to install electric meters. You may include the electricity charges in the rent itself and therefore charge a higher amount. Of course if the people kept on rent realize that they are not specifically being asked to pay for the electricity used then they may simply misuse or overuse it deliberately or even unconsciously. And this can cause your electricity bills to be particularly high and therefore can result in reduced financial results in some months.

Quality and Location:

The apartments also have to measured before buying an apartment building. There are less takers for very small apartments. Also, the number of rooms in an apartment may determine the odds of getting new tenants. Typically, the higher the number of rooms, the more are the chances of successfully renting it out. The location of the apartment building has to be taken into account as well. If it’s located nearer to important structures such as schools, hospitals, businesses or public transport points, then the apartments will become much more appealing.

Market Research and Financial Analysis:

Winston Rowe & Associates has an excellent knowledge based investor resource for commercial real estate valuation and market analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

The next step is to look for properties which fit your requirements. You don’t need to employ a broker to do your negotiations; you can call up the landlord himself. Tact is necessary in this case and also an explanation as to your own identity and intentions. If the landlord refuses you can give him your contact numbers. A lot of investors buy from owners who change their minds. If however, the owner is interested, ask for the rent rolls and other financial and operational details of the place (as your offer will be based on that). Reports on total income for past year also have to be looked through. You can then make an offer as you see fit.

Financing Options:

Winston Rowe & Associates has a core focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning loan products that best achieve their client’s goals. Their preemptive problem-solving approach is perfect for clients with credit and time sensitive issues.

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

processing@winstonrowe.com

Winston Rowe & Associates has no upfront free commercial loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming