Commercial Bridge Loans and Hard Money Financing No Upfront Fees

COMMERCIAL HARD MONEY LENDERS

 

Winston Rowe & Associates, a no upfront fee commercial bridge loan and hard money specialist offers borrowers an immediate financing alternative for short-term needs. Gap/Bridge financing, discounted mortgage buybacks, unpaid tax remittances, foreclosure workouts, bankruptcy resolutions (DIP) and short fuse opportunity financing.

Bridge Loan Financing Guidelines:

Never an upfront or advance fee
Financing available nationwide
Loan amounts range from $500,000 to $25,000,000.
Interest rates start at 10% interest only
Hard money loans can fund in two weeks with a complete loan file
Borrower must have a clearly defined take out (exit) in place
All commercial property types considered

At Winston Rowe & Associates, they offer their clients access to the most aggressive commercial real estate bridge (hard money) loans in the industry. Whether you are in need of short term financing, such as a bridge loan or hard money loan, or your needs are more long term such as construction or permanent financing, they will work with clients to structure a transaction that will meet or exceed your expectations.

Winston Rowe & Associates provides no upfront fee commercial bridge 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 Commercial Hard Money Loans No Upfront Fees

HARD MONEY BRIDGE LOANS

 

At Winston Rowe & Associates, they offer their clients access to the most aggressive commercial real estate bridge (hard money) loans in the industry.

Whether you are in need of short term financing, such as a bridge loan or hard money loan, or your needs are more long term such as construction or permanent financing, they will work with clients to structure a transaction that will meet or exceed your expectations.

Bridge Loan Transaction Overview:

Nationwide
Never an upfront or advance fee
Loan amounts from $500,000 to $25,000,000
Loan to value range is 50% to 60%
Fast closings in two weeks with a complete loan file
All commercial property types considered

At Winston Rowe & Associates, their primary objective is to provide the most reliable and efficient means of sourcing both debt and equity for your commercial real estate loans. Recognizing that people and relationships drive this business, they are staffed with some of the industry’s most committed professionals.

Winston Rowe & Associates provides no upfront fee commercial bridge financing in the ensuing 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

No Upfront Fee Hard Money Loans Explained Winston Rowe & Associates

HARD MONEY LENDERS ONLINE WITH NO UPFRONT FEES

Contact Winston Rowe and Associates

248-246-2243

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 carry back 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.

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

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 has 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

National Commercial Bridge Loans Direct No Advance Fees Winston Rowe & Associates

National Commercial Bridge Loans No Advance Fees

Winston Rowe & Associate has prepared this article to provide commercial real estate investors with the fundamentals of bridge loans.

Hard money bridge loans are a small corner of the alternative financing niche market. While many of their characteristics are similar to those of typical hard money loans, they have a specific purpose that is much narrower. By understanding how to use these bridge loans, many real estate investors are able to leverage their existing cash and take advantage of the current real estate market.

Bridge loans, by definition, are short term loans meant to bridge a gap during which traditional financing is unavailable. Often times this can be a construction period, or for commercial properties, a stabilization period. These loans are not meant to be long term solutions, but rather short term “bridges” to allow a project to move forward to the next phase.

Winston Rowe & Associates Bridge Loan Criteria:

Minimum Loan Amounts: One Million Dollars
Loan to Value Up To 75%
Interest Rates Start At 10%
Terms Range from One Month to Three Years

These days, many bridge loans made are through private money lenders or advisory firms like Winston Rowe & Associates. Banks and institutions are still conservative in their lending. If a transaction falls outside their strict guidelines, they will not make the loan. By their nature, projects seeking bridge financing do fall outside normal guidelines, and so those in need of this short term financing are turning to hard or private money lenders to provide it.

One of the most common forms of bridge financing these days is the short term rehab or fix and flip transaction. These are typically properties in need of repairs, and often the repairs needed are of the nature that a bank will not make a loan unless the repair is completed.

For real estate investors, this presents an opportunity to purchase a property below market value, obtain short term financing to fix the issues and bring it up to par so the banks will lend on it, then resell the property to a consumer who is then able to obtain bank financing.

In this situation, working with a hard money bridge loan allows an individual to finance a distressed property that the general public cannot obtain financing on. This is a large benefit to working with private lenders, as they do not have the same requirements that the banks do when making loans.

At Winston Rowe & Associates, their primary objective is to provide the most reliable and efficient means of sourcing both debt and equity for your commercial real estate loans. Recognizing that people and relationships drive this business, they are staffed with some of the industry’s most committed professionals.

Winston Rowe & Associates provides no upfront fee commercial financing in the ensuing 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

Underwriting Commercial Loans Winston Rowe & Associates

Winston Rowe & Associates, a national no upfront fee commercial real estate finance firm has prepared this article to provide prospective clients with the fundamentals of underwriting commercial real estate loans.

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

Commercial Loan Underwriting Overview:

Property owners conducting a commercial mortgage refinance are often surprised by the new range of loan programs that have become available in the last 5 years. Programs such as commercial 30 year fixed, second lien position loans, etc are turning heads. However the process is still expensive and time consuming and underwriting is still tied to the fundamentals – loan to value, debt service coverage ratios, global income, property analysis, and credit worthiness of the borrower.

Description & Guidelines:

Loan to Value

Loan to value restrictions on your typical commercial mortgage refinance are limited to 80% on rate and term and 75% on cash out refinances. However this guild line is what separates many banks from each others. Some get more aggressive and offer higher loan to values while others stay conservative and stay well below the percentages mentioned above.

This ratio is critical to banks as they underwrite files with the worst case scenario in mind – “what if the borrower defaults and we have to take this property back and sell it on the open market?” All loans rates are predicated on risk, therefore the lower the loan to value, the less risk for the lender and therefore lower rate for the borrower.

Debt Service Coverage Ratio:

On investment properties the Debt Service Coverage Ratio restrictions are typically set at a 1:1.25. Meaning that for every $1.25 of net income (income after taxes, insurance, repairs, etc) the property produces, the mortgage payments cannot exceed $1.00. Said in another way, after all expenses and the mortgages have been paid, the owner needs to net $.25 to qualify for the typical commercial mortgage refinance.

Lenders that allow lower DSCR are considered more aggressive (and normally charge higher rates) while banks with higher DSCR requirement are the considered the opposite – more conservative.

Global Income:

For owner occupants a different type of ratio is used called the Global Income approach. Basically this ratio compares ALL income the borrower has, including business profit, salary, dividends etc to ALL the expenses the borrower has including personal and business. The maximum Global ratio normally is 60%. For example, on monthly basis, if the borrower’s total personal and business income is $10,000, his total monthly debt payment would not be allowed to exceed $6,000.

Property Analysis:

The type of building being refinance has a major impact on what financial options are available. For example, there’s a huge difference in what a restaurant would qualify for vs. an apartment building. Market value, market rent, appearance, location, accessibility, local market conditions, as well as other factors play a major role into what refinance options will be available.

Credit Worthiness:

The personal credit worthiness of the borrower will be heavily scrutinized as this is an important component. A 680 credit score is the threshold for the best finance options. For smaller mortgages, credit scores play a bigger role in the underwriting decision and interest rates are heavily influenced by the borrower’s credit score.

Winston Rowe & Associates has a core focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning financial products that best achieve their client’s goals.

Winston Rowe & Associates has no upfront free commercial real estate financing solutions and 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 Buying Hotels Winston Rowe & Associates No Advance Fees

How To Invest In A Hotel

Hotels and motels can be great investments. The travel industry is not going away, and for this reason, there will always be a need for hotels and motels. While the investment in this industry is generally sound, not all hotels and motels are worth investing in.

Prospective hotel investors that would like additional information about Winston Rowe & Associates and their hotel investment strategies can contact them at 248-246-2243 or visit them on the web at http://www.winstonrowe.com

Winston Rowe & Associates is a national no upfront fee hotel financing company specializing in hotel loans including SBA 504 and 7(a), conventional, USDA B&I, and private funds for acquisitions, construction and take-outs, refinancing, and cash outs for both franchised and non-flagged independent hotels.

As with any purchase of real estate, the condition of the structure should be checked, and inspected by a professional. Necessary repairs, as well as the need for updated furnishings, fixtures, equipment, and inventory should be considered. This information will help you in determining the market value of the property.

Once the sale is complete, make sure that the owner gives you a separate bill of sale for all furnishings, fixtures, equipment, and inventory, as well as the deed to the property.

Check with the county or state about planned changes and roadway construction. If the property is on a highway, and there are plans to build a loop, the property and business may not be as valuable as you thought it was.

Stay at the hotel as a guest for a week. Try to do this before anyone is aware that you are considering the property. This will give you the opportunity to view the hotel or motel as a guest would.

If the hotel or motel is franchised, read the franchise disclosure. Also, view the franchise agreement that the current owner has with the company, and find out if that agreement will be transferred to you, or if you will have a new agreement with the company. Find out what fees you will be required to pay to the company upon taking over the property.

Check out the current competition, and consider the potential for future competition. Also consider the local reputation of the hotel or motel. If it has a bad reputation, it will be difficult to change the local opinion. A bad reputation drastically lowers the market value of the property.

Look at the financial statements for the past two or three years. Also, check the occupancy rate. Look at room rates and expenses for running the business. Check the room rates at nearby hotels and motels for comparison. Verify all financial information.

It is usual for the buyer to have a 30 day study period, and this is usually set down in the letter of intent or the agreement of sale. Use this period to check things out to your satisfaction. If you are not satisfied, you can back out of the agreement.

Review contracts that the current owner has with suppliers, as well as customer groups. Find out if those contracts will be renewed or valid after you take over the property. Be sure that the contracts will be satisfactory for you as the owner of the property. If there are existing contracts that you may wish to cancel upon purchasing the property, make sure that you will be able to cancel those contracts without being penalized.

Make sure that the hotel or motel is currently in compliance with governmental requirements. Also consider what licenses and permits you will need to get to operate the property, as well as the requirements and costs in obtaining those licenses and permits. Find out what insurance company is currently insuring the property and how much the premiums are. Do your own insurance shopping as well to see if you can get better coverage, or a better rate.

Winston Rowe & Associates has no upfront free hotel and motel 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

SBA Hotel Motel Financing & Refinancing Winston Rowe & Associates

SBA Hotel Motel Financing & Refinancing

SBA 504 or 7a financing can be used to purchase, remodel or refinance a hotel or motel and recent changes to SBA eligibility guidelines have made it possible to finance multiple properties as well as larger properties.

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

Hotel & Motel Financing Criteria & Solutions:

No upfront or advance fees
Loan amounts range from $400,000. to $5,000,000.
Maximum loan to value 80%
Seller second mortgages up to 10%
Loans are available for experienced hoteliers to purchase well maintained properties with good cash flow
Refinances are available under both the 504 and the 7a programs
The 504 can accommodate larger loans, but the refinance provision is set to expire Sept 27th 2012.
Independent hotels and motels are financeable
Flagged properties are easier to finance in the current environment
Hotels Are Now Eligible For Refinancing
Refinancing is available through both the 7a and the 504 program.

Winston Rowe & Associates has no upfront free hotel and motel 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

National Commercial Real Estate Investing Loans No Advance Fees

Winston Rowe & Associates a national no advance fee commercial real estate investing financing firm. With direct access to the most aggressive investor sources in the world, they can structure a customized financing solution for clients, with the best terms possible.

For more information about Winston Rowe & Associates apartment building loan programs, they can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com

They provide their clients with a private banking approach through specialized lending solutions to quickly and efficiently determine the best options for their clients.

Winston Rowe & Associates Financing Solutions:

Loan Amounts From $1,000,000 through $500,000,000
Hard Money Bridge Loans Fast 2 Week Closings
Private Equity Solutions
Small Business Administration (SBA) Loans
Purchase, Refinance & Portfolio Repositioning
Bank Discounted Note Financing (DPO)
Eligible Commercial Properties Include:
Multi-family
Single Family Residential
Office
Industrial
Mixed Use
Hotels
Special Purpose
Retail
Health Care

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

Apartment Building Underwriting Standards & Practices Winston Rowe & Associates

Apartment Building Underwriting Standards & Practices

Winston Rowe & Associates 

Apply Online For A Apartment Building Loan

Winston Rowe & Associates has prepared this article to assist prospective clients a general understanding or underwriting standards and practices for apartment buildings.

Winston Rowe & Associates is a national no upfront fee commercial real estate finance firm that utilizes a private banking approach. For more information about Winston Rowe & Associates, they can be contacted at 248-246-2243 

SECTION I THE PROPERTY

The property is analyzed in order to determine the level and sustainability of the net operating income stream from the property, the property’s financial capacity to repay the apartment loan, and the collateral value of the property securing the apartment mortgage. An underlying assumption is that the property is for an investment purpose, even when the Borrower(s) may occupy one of the apartment units.

SECTION II – BORROWER(S)

The overall creditworthiness of the Borrower(s) is analyzed in order to determine personal debt-to-income ratios, credit history, real estate ownership, management experience, cash reserves, and related information.

SECTION III – APARTMENT LOAN PARAMETERS

The overall apartment loan request is reviewed in order to insure it complies with the apartment financing parameters of a particular loan plan.

SECTION I – APARTMENT LENDING PROPERTY LOCATION OF PROPERTY

Apartment Lender originates apartment loans in locations within market areas as approved by Lender’s Product/Pricing Committee. Questions regarding a property’s location, when determining eligibility, may be directed to Lender’s Underwriting Department.

Lender makes apartment loans in selected markets of the United States of America and the District of Columbia.

ELIGIBLE PROPERTY TYPES

Apartment Lender offers first lien adjustable rate and fixed rate apartment mortgages for apartment properties having 5 or more total residential units and Mixed-Use properties provided there are at least 5 residential units, the overall percentage of current gross potential annual income from the commercial units does not exceed 25%, the number of commercial units does not exceed 25% of the total legal units, all commercial units have leases, and the real property ownership interest is held in a fee simple estate.

In Lender’s opinion:

A.        Property shall generate enough gross income to support the proposed apartment mortgage loan debt service, operating expenses, reserves, and a sufficient return on investment to Borrower(s);

B.         Property shall be in overall good condition, without excessive deferred maintenance, and without building code violations. Any properties where the appraiser has rated the “Condition of Improvements” as “Fair” will be considered, subject to underwriter’s review of a Property Condition Assessment  completed by Lender’s approved consultant at Borrower’s expense

C.        Property shall provide the tenants with acceptable living conditions, lacking in functional obsolescence;

D.        Property shall be free of non-abatable environmental hazards;

E.         Property shall conform to the zoning of the site. Property that does not conform may be acceptable (legal non-conforming), provided Apartment Lender’s Property and Liability Insurance Requirements are met.

F.         Proposed apartment loans that collateralize multiple apartment buildings must have the buildings contiguous and adjacent to each other, forming an apartment complex. Multiple lots and multiple assessor property numbers are acceptable.  Non-contiguous buildings will be considered if all buildings are secured under a blanket apartment mortgage with no partial releases being honored during the life of the apartment loan, within a half a mile radius from each other, each separate complex must have at least 5 residential units, and each separate complex that are not contiguous must have sufficient value to meet the minimum apartment loan amount requirements and sufficient income to meet the DCR requirements.

Apartment Lender must be provided with separate rent rolls and income and expense operating statements for each separate complex;

G.        Condominiums or Planned Unit Developments (PUD) where the borrower owns 100% of the units contained in the separate structure(s) defined as the collateral property even though the structure(s) may be only a portion of the condominium association or PUD;

H.        Properties with seasonal occupancy where the market area does support year-around occupancy and/or year-around employment;

I.          Properties with a studio/efficiency (i.e. units not containing any bedrooms) unit mix, as long as they are typical of the subject’s market;

J.          Properties with concessions and/or concessions in the property’s submarket will be considered based on the final adjusted Debt Coverage Ratio (DCR) as determined by underwriting.

K.          Properties where the electrical is master metered wherein the landlord pays one utility bill to the public utility company provided that this is typical of the market;

L.           Properties where tenants are “doubling-up” (i.e. the units have more occupants than intended for the unit, which is generally more than two occupants per bedroom) will require a 10% reduction to the applicable LTV;

M.           Properties with furnished housing, as long as they are typical in the subject’s market.  Lender will not include any premiums or excess rent above market in the underwriting analysis.  Lender must be provided with sufficient information in order to be able to isolate the excess rent from furnished housing units;

N.           Properties that do not have public-provided water and sewer (e.g. a private well and/or private septic or sewage treatment system).  A satisfactory well inspection (performed by local authority) and a septic inspection (performed by a licensed contractor) reflecting that there are no life/safety issues will be required;

O.           Properties with master leased elements will be considered under the following requirements:  Up to 10% of the units in the subject may be leased by corporations, partnerships, trusts, or other entities.  No more than 5% of the total units in the subject may be leased to any single corporation, partnership, trust, other entity or individual;

P.            Properties with up to 100% of the tenants receiving rent subsidies (i.e. Section 8 only).  Lender will utilize the lower of the market or contract rents for underwriting purposes.   Lender will not consider a building with a HAP contract (entire building under contract); and

Q.           Properties with convenient stores where liquor, including beer and wine is sold and is not consumed by customers on-site.

PROPERTY CONDITION ASSESSMENT FOR MULTI-SERIES APARTMENT LOAN PROGRAM

Apartment Lender requires a Property Condition Assessment (PCA) when the subject property or apartment loan request is one of the following types:

A.                 An apartment/mixed-use building that is 50 years of age or older (at time of loan application) coupled with a loan which is in excess of $500,000, unless a property has gone under significant rehabilitation, and can be  classified as an “A” or “B”, see Preamble for classifications; or

B.                 An apartment loan request that is a ‘cash-out’ refinance of $100,000 or more; or

C.                 A property where the appraiser has rated the “Condition of Improvements” as “Fair”.

In addition, a PCA may be required if recommended by the appraiser and/or Apartment Lender underwriter due to the condition of the property, environmental, or other issues. PCA’s are subject to review and/or modification by Apartment Lender’s Underwriting Department. The PCA will help determine if the need for a Repair/Modernization letter and/or monetary holdback is required.

When a PCA is not required on a particular property, the property shall still meet the minimum guidelines set forth in Apartment Lender’s Property Condition Assessment Guidelines and Procedures.

2012 Manufacturing Report Winston Rowe & Associates

Detroit MI – Investors rejoiced over Europe last week. On Monday, they got back to worrying about the United States.

Stocks sank after a business group reported that American manufacturing shrank in June for the first time in almost three years. The Dow Jones industrial average ended down nine points to 12,871. The Standard & Poor’s 500 is up three to 1,366. The Nasdaq composite index is up 16 to 2,951

The government reported a sliver of good news: U.S. construction spending rose in May by 0.9 percent, the most in five months.

But that was not enough to soothe investors.

On Friday, the Dow gained 277 points and the S&P had its best day of the year after European leaders announced a plan to make bailouts easier for troubled banks. Monday brought a reminder of how badly Europe needs help: Unemployment in the 17 countries that use the euro is at the highest level since the euro was launched in 1999.

France’s auditors warned that the country still has a big budget hole to plug, Cyprus prepared for talks on a bailout, and the highest court in Germany announced it would hear arguments from people who want to block the rescue plan. Investors will also watch this week to see whether the European Central Bank cuts interest rates.

n the U.S., investors will get plenty of economic news. Car companies report sales today, retailers like Target and Macy’s report monthly sales on Thursday, and a closely watched report on U.S. jobs will be released Friday.

Leo Grohowski, chief investment officer of Bank of New York Mellon’s wealth management division, said he hoped for “two steps forward, one step back” improvement in the U.S. economy.

Grohowski expects swings in the market until the November U.S. election, or at least until Europe works out more certain plans about how to free itself from heavy debt.

“So many investors are saying, “Look, I can’t go a day without hearing about the ongoing problems in the eurozone,”‘ Grohowski said, “So that’s just taken its toll on (stock) levels.”

Elsewhere, China’s manufacturing grew at the slowest pace in seven months in June.

U.S. Consumer Confidence Fell on Job Outlook

U.S. consumer confidence fell in the second quarter of 2012 on concern for the economy and job security.

Nielsen, a global information and measurement company, said its index of U.S. consumer confidence fell five points in the period to 87. Its lowest point on record was 80 points in the first half of 2009. The company surveyed 500 people in the U.S. online from May 4 to May 21.

The top concern for U.S. consumers was the economy, with 42 percent citing it as their main worry. Concern for job security also increased from 18 to 22 percent. Concerns for debt, rising fuel and food prices decreased, the survey said.

“Given the dramatic slowdown in hiring which has been steadily falling since January, consumers are concerned that the economy is stalling again,” said James Russo, the vice president of Global Consumer Insights at Nielsen.

One in three respondents said they were optimistic for job prospects in the next six months, one in two were confident for personal finances, and one in three said it was a good time to buy things they want and need, according to the survey.

Survey shows Chinese manufacturing growth slips in June to slowest pace in 7 months

BEIJING, China – A survey shows China’s manufacturing grew in June by its slowest pace in seven months, raising questions about efforts to prevent the world’s second-biggest economy from slowing too quickly.

The state-affiliated China Federation of Logistics and Purchasing said Sunday that its purchasing managers’ index fell 0.2 percentage points to 50.2 per cent in June, just above the 50 level that signifies expansion. The index was at 50.4 in May and 53.3 in April.

The European debt crisis is pinching China’s export manufacturers, while moves to control property prices have chilled construction spending, with worries economic growth will fall below 8 per cent in the second quarter.

Although high by Western standards, that is weak compared with years of double-digit growth and points to concerns about imports from countries reliant on Chinese demand.

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Commercial Loan Underwriting and Due Diligence Winston Rowe and Associates

Winston Rowe & Associates offer expert due diligence, underwriting and funding solutions for apartment loans, office, hotel, industrial or retail property loans, with no upfront or advance fees.

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