Structuring Commercial Real Estate Loan Guide – Winston Rowe & Associates

Structuring Commercial Real Estate Loan

Structuring financing for a commercial property is a complex process that requires extensive documentation that must be verified through a detailed due diligence process prior to underwriting and the funding approval.

Many commercial real estate owners are turning to Winston Rowe & Associates, a national no upfront fee advisory and finance firm that utilizes a private banking approach specializing in commercial property transactions.

Commercial real estate investors can contact Winston Rowe & Associates at 248-246-2243 or visit them on line at http://www.winstonrowe.com  for more information concerning this article.

Every commercial real estate transaction is considered unique in most respects; the ensuing is a general description of the approach and methodology that is utilized during the initial due diligence investigation prior to underwriting for a purchase or a refinance of a commercial property.

The Application Phase:

All banks and private lenders start with an application, intake form or transaction summary document with basic supporting documentation to begin the review of the prospective transaction.

Supporting documents that are generally required during the application phase are; personal financial statements, personal and business bank statements, purchase contracts and personal credit reports.

Hence, be prepared to provide documentation and answer a lot of question during this phase of the financing process.

It is paramount that you do not misrepresent or attempt to hide any material facts during the application phase.

Skilled due diligence and underwriting professionals will discover these omissions and misrepresentations and will most likely decline your financing request.

Strength of the Sponsor:

Every commercial real estate transaction starts with the commercial real estate investors’ personal and business financial strength and past professional experience for the purchase or refinance of a commercial property or portfolio. In today’s current banking climate; all lenders are utilizing a global approach when performing due diligence on a prospective client.

The bottom line is; the old days are over. You cannot get financed with bad credit, zero liquidity (cash is king) or commercial real estate that is in a declining market.

Property Type & Location:

There is an axiom in real estate. The three most import three things are; location, location and location. Most banks and private lenders have restriction for the markets and property types they will provide financing in. Commercial real estate investors should consider working with an advisory and consulting firm like Winston Rowe & Associates. They have direct relationships throughout commercial finance industry.

Skin in the Game:

Purchase and refinance, commercial real estate transactions require money (cash) invested. For example; if you are purchasing, you will need a minimum 20% cash down payment. Many investors make the mistake of thinking that a seller carry back or offering less than the appraised value meets the requirement. In today’s lending market, you will need to share in the risk and bring cash to the table.

Refinance loans for commercial real estate also require skin in the game. During the due diligence investigation and underwriting process, banks and private lenders what to make sure that the investor(s) did not take out their cash through a past refinance.

Exit Strategy:

All banks and private lenders need a clearly defined and proven exit strategy of how the investor(s) are going to make their monthly mortgage payments, maintain their property and show a profit.

Why Use Winston Rowe & Associates:

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 construction loans.

Winston Rowe & Associates provides no upfront construction 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 Construction Loans No Upfront Fees Winston Rowe & Associates

APARTMENT CONSTRUCTION LOANS

Looking for commercial construction loans or apartment construction loans? Winston Rowe & Associates, a no national upfront fee commercial real estate finance and advisory firm provides solutions for the construction of office, retail, multi-family, and hospitality, medical and industrial properties.

They encourage prospective clients to contact them with the parameters of their construction loan request directly at 248-246-2243, or visit them on line at http://www.winstonrowe.com

Full-Service Apartment Construction Solutions:

Rates depend on the project and collateral type. Every construction transaction is unique in its own way, therefore, the loan-to-value on various commercial real estate loan programs can range anywhere from 60% to 70%.

Never an upfront or advance fee Loan amounts starting at $1,000,000 with no limit

National coverage

Interest only

Mezzanine loans Strong liquid assets

Proven experience

Up to 70% Loan to Value (cash down payments required)

Major metropolitan areas only

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 construction loans.

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

Winston Rowe & Associates provides no upfront apartment construction 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

Zero Advance Fee Debtor in Possession Financing Winston Rowe & Associates

Businesses that are considering or are in the process of filing for Chapter 11 Debtor in Possession (DIP) Bankruptcy in US District (Federal) Court are turning to Winston Rowe & Associates.

They encourage prospective clients to contact them with the parameters of their debtor in possession (DIP) financing request directly at 248-246-2243, or visit them on line at http://www.winstonrowe.com  

DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims. DIP financing is considered attractive because it is done only under order of the US District Bankruptcy Court, which is empowered by the Bankruptcy Code.

Winston Rowe & Associates Debtor-in-Possession financing can also provide corporate bankruptcy financing to engage in a pre-packaged business bankruptcy where the asset based lender providing DIP financing supplies the funds to work out a settlement with creditors up front, in order to walk into US District Bankruptcy court with this pre-packed settlement.

Winston Rowe & Associates Financing Solutions For Chapter 11 DIP:

• Capital deployment starts at $1,000,000 with no upper limit
• Competitive interest only rates
• Never an upfront or advance fee
• National coverage
• Take out financing available
• Prepackaged solutions available
• All commercial property types considered
• Maximum loan to value (LTV) 60% on assets
• Funding can be completed in as little as 30 days with a complete submission

Winston Rowe & Associates offers conforming, non-conforming and CMBS commercial loan DIP finance programs, each is designed to provide the most competitive financing terms based on a combination of property constraints, borrower investment and personal goals.

They have 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  

Winston Rowe & Associates provides no upfront fee debtor in possession 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

Commercial Loan Mortgage Refinancing No Upfront Fees Winston Rowe & Associates

Commercial Loan Mortgage Refinancing No Upfront Fees

Winston Rowe & Associates, a national no advance fee commercial real estate finance and consulting firm provides an attractive mix of commercial loan programs for borrowers interested in refinancing their current commercial loan.

Winston Rowe & Associates offers conforming, non-conforming (hard money) and CMBS commercial loan refinance programs, each is designed to provide the most competitive financing terms based on a combination of property constraints, borrower investment and personal goals.

They encourage prospective clients to contact them with the parameters of their commercial loan request directly at 248-246-2243, or visit them on line at http://www.winstonrowe.com

Commercial Loan Refinancing & Financing Solutions:

Never an upfront or advance fee

Loan amounts starting at $500,000 with no upper limit

All commercial property types considered

Purchase, refinance, construction and cash out

Loan to value ranges are 60% to 70% for refinance

Up to 80% for purchase transactions

Fast 30 day close emergency funding

Savvy commercial real estate investors have been turning to Winston Rowe & Associates because they provide the most reliable and efficient means of sourcing both debt and equity for your commercial real estate loans nationwide.

Refinancing A Commercial Mortgage Loan Zero Advance Fees Winston Rowe & Associates

Refinancing A Commercial Real Estate Loan

Do you need to refinance your commercial loan, but don’t want to pay upfront fees? Winston Rowe & Associates does things a little differently. They are a national full service no advance fee commercial real estate due diligence and financing firm.

They have a core focus on customer service and speed of execution with the industry’s most competitive mix of commercial loan programs that will fit almost every commercial real estate investor’s objectives.

They encourage prospective clients to contact them with the parameters of their commercial loan request directly at 248-246-2243, or visit them on line at http://www.winstonrowe.com

Why CRE Investors Have Been Turning To Winston Rowe & Associates:

Some of the best service in the business

Never an upfront or advance fee

They consider all commercial real estate types

Their loan amounts start at $500,000 with no limit

National coverage

Solutions for purchase, refinance, construction and cash out

Savvy commercial real estate investors have been turning to Winston Rowe & Associates because they provide the most reliable and efficient means of sourcing both debt and equity for your commercial real estate loans nationwide.

Winston Rowe & Associates provides no upfront fee 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

— End —

Jobless claims snap back up

NEW YORK (CNNMoney) — First-time claims for unemployment benefits are on a roller coaster. The number snapped back up last week, after falling to a four-year low the week before.

 

About 388,000 people filed for first-time unemployment benefits in the week ended October 13, up 46,000 from the previous week, the Labor Department said Thursday.

 

Obama’s economy

 A look at where the economy stood when Obama took office and what’s changed since.

View photosThe last two weeks have swung dramatically in both directions, with initial claims first dropping to a revised 342,000, the lowest level in four years, and then suddenly popping back up last week.

 

Economists attribute the volatility to the end of the quarter and the Columbus Day holiday.

 

“The volatility in the last few weeks appears to reflect seasonal adjustment challenges around the start of a quarter,” said Jim O’Sullivan, chief U.S. economist for High Frequency Economics.

 

Related: State unemployment rates

 

Economists often prefer to look at a four-week moving average, to smooth out some of the large swings in the data.

 

That indicator increased to 365,500 last week and has been hovering in the 360,000 to 380,000 range since July. Claims around that level suggest layoffs remain low — an encouraging sign for the economy — but don’t necessarily mean hiring has picked up.

 

“The labor market, just like the broader economy, is plodding along at a deliberate pace,” said Thomas Simons, money market economist for Jefferies.

 

Meanwhile, about 3.3 million Americans continued to file for their second week of unemployment benefits in the week ended October 6, the most recent data available.

10 Tips For Investing In Commercial Real Estate Winston Rowe & Associates

Winston Rowe & Associates, a no upfront fee commercial real estate finance and advisory firm has identified 10 time-tested tips to follow that will help you have more success.

Commercial real estate investors can contact Winston Rowe & Associates directly at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Tip #1: Think Big

If buying a 5-unit apartment requires you to get commercial financing, which is more of a hassle, then why bother? I would recommend buying properties with at least 10 units. Remember that the more units you buy, the cheaper they are per unit. Also, Dave Lindahl has been quoted as saying, “It’s no harder to manage 50 units than it is 10.”

Tip #2: Take Your Time

Commercial deals take longer than single-family houses do. They take longer to purchase, renovate, and get sold. This is not necessarily a bad thing, but something to keep in mind so that you don’t get impatient or rush into a bad decision. Think of commercial deals as big bonuses or your retirement vehicle, not a way to create quick cash to pay the bills.

Tip #3: Don’t Choose Apartments By Default

There’s nothing wrong with investing in residential apartments per se. I’m just pointing out that since most investors are already comfortable with residential property, they tend to look for apartments without considering the other types of commercial property, such as office buildings, industrial, mobile home parks, land, etc. Weigh all of these property types and choose your own niche based on whatever will help you reach your unique goals, regardless of your comfort zone.

Tip #4: Be Prepared to Spend a Lot of Time at First

Fight the temptation to get discouraged if you haven’t done your first deal yet, or if you are spending more time per deal than your previous ones. Houses are so similar that it’s easy to make a cookie-cutter system for buying and selling them. When I begin looking for commercial properties, I was surprised at how long it took me in the beginning to screen deals and make offers. Just remember that there is a learning curve, like with anything else, and that things will go faster over time.

Tip #5: Learn the new formulas

If you’re buying houses, you may use certain formulas, like buying at 75% of After-Repaired Value, minus estimated repairs. Commercial property will have new and different formulas to get used to, such as Net Operating Income and Cap Rates. Learn what is considered good in your area and get familiar with them when making offers.

Tip #6: Relationships Are Even More Important

Relationships with other investors, private lenders and consulting firms like Winston Rowe & Associates are important when investing in real estate, but they are even more so when buying commercial properties. For one, properties costing a million dollars or more are probably within the financial wherewithal of most of us individually, so you probably have no choice but to get to know and work with partners. Also, many commercial properties are sold without being listing first, so the more people in your network who know what you’re looking for, the more deals you’ll find.

Tip #7: Find Good Financing In Advance Through Winston Rowe & Associates

Commercial loans are a different animal than residential loans, and in some ways better. The down payments needed are usually a higher percentage than loans on single-family houses, which means you’ll have to put more down (or get your partner to put more down). However, there is often no personal liability if the deal goes south, and they are more lenient about letting you borrow the down payment money from someone else. Nevertheless, before making offers, ask around and find out who the best lenders are in your area to use when buying commercial properties, as it may make the difference between qualifying for one or not.

Tip #8: Be Prepared to Lose Due Diligence Money

After your offer is accepted, you have a period of time (just like with houses) to do your due diligence. You should get an appraisal, property inspection, and other tests and inspections required by law. The only problem is that these cost a lot more than they do for smaller deals. You might spend $5,000-10,000 on a deal, only to find out you don’t want to buy it after all. While this is always better than buying a bad deal, you should still be prepared for these kinds of expenses.

Tip #9: Winston Rowe & Associates Are Partners To Your Bridge to Wealth

Buying million-dollar properties is not something most people can qualify for on their own (in fact, getting a loan to buy a house is hard enough!) So make sure that you spend a lot of time finding private lenders or deal partners to help you out. A partner can provide the cash and/or credit needed to purchase a property, and you can compensate them by paying a fixed interest rate or a percentage of the cash flow or proceeds from the sale.

Tip #10: Know Where to Get Tough Questions Answered

Lastly, it’s imperative that you associate with experienced commercial investors who can answer questions that come up while you are evaluating properties. There’s no sense in losing a deal or buying a bad property because you didn’t understand certain environmental regulations or estimating what trash collection really costs. Know who you can ask to get fast answers when you need them, and make them your new best friends.

Winston Rowe & Associates provides no upfront commercial real estate 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

Stocks Give Up Gains End Mixed This Week Winston Rowe & Associates

NEW YORK (CNNMoney.com) — Stocks gave back earlier gains to end mixed Tuesday, as investor optimism over the extension of Bush-era tax cuts gave way to speculation about a widening federal probe into insider trading.

 

Stocks held gains for most of the day as investors welcomed news that President Obama had reached a deal with Republican lawmakers Monday that would extend Bush-era tax cuts for two years and unemployment benefits for 13 months. It would also lower the payroll tax by two percentage points for a year.

 

But the momentum faded late in the day after Obama, who had wanted the cuts for high-earning taxpayers to expire, said in a press conference that he would push to have them eliminated after the two-year extension is over.

 

“This gives us the time to have this political battle without having the same casualties for the American people,” he said.

 

Obama said the compromise was necessary to prevent taxes from going up for middle-class taxpayers. But it also reflects the newfound clout Republicans have on Capitol Hill following last month’s upset in the midterm elections.

 

Peter Boockvar, chief market strategist with Miller Taback & Co., said the market turned lower following a report that the government’s crackdown on insider trading is accelerating. But he said investors were also nervous about a major sell-off in the bond market.

 

“I think it has more to do with the shellacking in the bond market,” he said. While the deal to extend tax cuts was a positive, “investors can’t ignore the spike in interest rates,” he added.

 

The yield on the 10-year Treasury note jumped to its highest level since June, stoking worries that a rising interest rates could slow the sluggish economic recovery.

 

Stocks ended Monday’s session mixed after drifting around breakeven for most of the day. Investors spent most of the day mulling over Federal Reserve chairman Ben Bernanke’s pessimistic comments about the nation’s economy.

 

Companies: Bank of America (BAC, Fortune 500) agreed to pay $137 million in fines to federal and state regulators to settle charges of bid rigging in the municipal bond derivatives market. Shares rose 0.5%.

 

The Treasury Department said Monday afternoon it planned to sell 2.4 billion Citi (C, Fortune 500) common shares, priced at $4.35 a share.

 

That gives the government a $12 billion profit, including dividends and interest payments, on its $45 billion Citi bailout. Company stock rose 14 cents, or 4%, to $4.60 per share.

 

3M (MMM, Fortune 500) said it expects full-year earnings will be between $5.90 and $6.10 per share in 2011, on sales of up to $30.5 billion. Analysts had been expecting earnings of $6.20 per share, according to consensus estimates from Thomson Reuters. Shares of the company fell 3%.

 

AGL Resources (AGL) and Nicor Inc. (GAS) announced a merger creating a leading U.S. natural gas distribution company. The combined company will be known as AGL Resources. Shares of AGL were down 5.8%, while shares of Nicor rallied 4%.

 

Currencies and commodities: The dollar rose versus the euro and the yen, but remained weak against the U.K. pound.

 

Oil for January delivery fell 69 cents to end at $88.69 a barrel. Earlier, prices rose above $90 a barrel for the first time since October 2008.

 

Gold futures for February delivery fell $7.10 to settle at $1,409 an ounce, after reaching a new intraday high of $1,432.50 earlier in the session. Gold settled at a record $1,416.10 an ounce Monday.

 

Silver for March delivery gained 51 cents, or 1.7%, to $30.25 an ounce. Earlier in the session, silver topped $30.75 an ounce — a new 30-year high.

 

World markets: European stocks ended higher. Britain’s FTSE 100 added 0.9%, the DAX in Germany gained 0.8%, and France’s CAC 40 surged 1.9%.

 

Asian markets ended the session mixed. The Shanghai Composite added 0.7% and the Hang Seng in Hong Kong jumped 0.8%, while Japan’s Nikkei shaved 0.3%.

 

Economy: Consumer credit increased $3.3 billion in October, according to the Federal Reserve. Economists surveyed by Briefing.com had expected a $2.5 billion decrease. This follows September’s $2.1 billion increase in consumer credit.

 

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.16% — a level not seen since late June.

China Shows Signs Of Economic Recovery Taking Shape Winston Rowe & Associates

BEIJING (AP) — China’s worst slump since the global financial crisis leveled out in the latest quarter and retail sales picked up in a sign an economic rebound is taking shape, adding to hopes for a global recovery.

The world’s second-largest economy grew 7.4 percent from the year before in the three months ending in September, data showed Thursday. That was slower than the second quarter’s 7.6 percent growth but the decline was much gentler than in earlier quarters. Economists also pointed to quarter-on-quarter growth of 2.2 percent, the biggest such gain in a year, as a sign of recovery.

“This confirms that the economy is rebounding,” said Dariusz Kowalczyk, senior economist for Credit Agricole CIB in Hong Kong. “There is no room and no need for further major stimulus.”

The Chinese improvement came after unexpectedly strong U.S. housing starts boosted confidence that the world’s biggest economy is mending after five years in the doldrums. The U.S. Commerce Department said Wednesday that builders started construction on new single-family houses and apartments at the fastest pace in more than four years. The U.S. and Chinese numbers are rare good news for the world economy, which has slowed as Europe’s chronic debt crisis worsened and the American economy stagnated.

Beijing has cut interest rates twice since early June and is injecting money into the economy through higher investment by state companies and spending on building subways and other public works. But authorities have avoided a major stimulus after huge spending in response to the 2008 global crisis fueled inflation and a wasteful building boom.

Retail sales rose 14.4 percent, accelerating from the first half’s 14.1 percent growth. Investment in factories and other fixed assets improved, rising 20.5 percent in the first nine months of the year, up from a 20.2 percent rate for the first eight months.

“We can see a clear sign of steady economic growth,” said Sheng Laiyun, spokesman for the National Bureau of Statistics. “There is a smaller margin of decline and some major indicators have been growing faster.”

A rebound in Chinese growth would be good news for economies such as Australia, Brazil and African countries that supply its factories with iron ore and other commodities.

The slowdown over the past year and a half is due largely to government curbs imposed to cool an overheated economy and reduce reliance on exports by encouraging more domestic consumption. The slump worsened last year after global demand for Chinese goods plunged unexpectedly.

In line with the government’s hopes, retailing and other service industries aimed at Chinese consumers are growing relatively strongly while manufacturing and heavy industry have been battered by weak global demand and government curbs on construction. The government says stronger activity in services industries has helped to limit job losses.

Pan Wenhao, a 25-year-old wedding photographer in the tourist town of Lijiang in China’s southwest, said his photo studio’s revenues are up 50 percent compared with this time last year. He said tourism in Lijiang has grown by about 20 percent from last year.

“I expect my business to be much better in the future and I am confident about that,” Pan said.

But conditions are still tough for manufacturers that had relied mostly on exporting are now trying to sell more to China’s own consumers.

Xie Jun, owner of Dongguan Jincai Real Co. in the southern city of Dongguan, which manufactures headphones, mobile phones and computer accessories, said he is losing 100,000 to 200,000 yuan ($15,000-$30,000) a month and had to lay off 30 of his 100 employees. He began trying to make more sales in China a few years ago “but the market is limited.”

“We get less business, and even if the factory is running, we cannot make money from that,” Xie said. “Most of the businesspeople I know here have the same problem as me.”

China’s expansion is strong compared with the United States and Japan, where this year’s growth is forecast in low single digits, but the slowdown has been painful for companies that depend on high growth to drive demand for new factories and other goods.

The slump raised the risk of job losses and unrest, posing a challenge to the ruling party as it prepares for a once-a-decade handover of power to younger leaders. The further quarterly decline had been expected after officials including President Hu Jintao warned that growth might slow further before recovering.

Premier Wen Jiabao, the country’s top economic official, said Wednesday growth appeared to be stabilizing and expressed confidence China can meet its official targets for the year. Wen gave no growth forecast or a possible time frame for a recovery.

A Chinese recovery could help to boost demand for commodities but otherwise its contribution to global growth will be limited because the country meets much of its demand from its own factories, said Kowalczyk. He said that was reflected in the relatively weak September import growth of just 2.4 percent, well below the double-digit rates earlier this year.

“The impact on the rest of the world will be more psychological rather than real, major growth,” he said. “But it is good to know the risks from China to the global economy are sharply lower.”

Winston Rowe & Associates Global Oil Supplies Stabilize

LONDON (Reuters) – Oil dropped to $112 a barrel on Thursday, pressured by signs of a healthier supply outlook and a rise in U.S. jobless claims, offsetting Chinese data signaling stabilization in the economy of the world’s second-largest oil consumer.
U.S. crude inventories rose more than expected last week, a report showed on Wednesday. This weekend Britain’s largest oilfield, Buzzard, is scheduled to restart, increasing supply of crude underpinning the Brent contract.
Brent crude for December delivery was down $1.22 at $112.00 a barrel by 1352 GMT, after settling 78 cents lower. U.S. oil for November fell $1.08 to $91.04.
“Brent is currently under pressure,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt. “The fact that North Sea supply is due to rebound with the restart of the Buzzard field may also be a factor for the weaker tone of the Brent price.”
In a further addition to supplies, Sudan issued a tender to sell Dar Blend crude in November after parliaments in Khartoum and South Sudan ratified an agreement this week to end hostilities and restart southern oil exports.
The market made a further downward lurch after the U.S. jobs report. Initial claims for state unemployment benefits rose 46,000 to a seasonally adjusted 388,000, the Labor Department said on Thursday.
Oil had edged higher earlier in the session. China’s economy grew 7.4 percent in the third quarter from a year ago, in line with forecasts, while industrial production, retail sales and investment data were all slightly ahead of expectations.
Still, China’s growth rate fell short of the official 7.5 percent target and an expansion of 7.4 percent still represents a sharp slowdown for the country, where the economy grew 9.2 percent in 2011.
“The Chinese data was pretty neutral for the market,” said Tony Machacek, an oil futures broker at Jefferies Bache in London. “If support around $113-$112.50 gives way, we could fall quite a bit lower.”
Goldman Sachs, in a note to clients on Wednesday, cut its Brent price forecast for 2013 to $110 a barrel from $130, citing an increasing outlook for supply outside of the Organization of the Petroleum Exporting Countries.
The bank, which up until now had the highest oil price prediction among major forecasters, said it still expected the physical market to remain tight and maintained a near-term target of $120.
SUPPLY RISKS
Brent has gained more than 4 percent this year, partly due to supply-side concerns.
North Sea output has underperformed as fields including Nexen’s Buzzard shut for maintenance, supporting Brent. Buzzard, which has missed previous timetables to restart, is currently due to resume output by Sunday.
A strike in Norway earlier this year also cut North Sea supply, supporting prices. A union leader said on Thursday Norwegian oil service workers voted in favor of a proposed wage deal, avoiding another potential strike.
Iranian exports have fallen due to Western sanctions and the risk of wider supply disruption arising from Iran’s nuclear programme is still putting a floor under the market.
In another sign of Tehran defying international demands to curb its disputed nuclear programme, Western diplomats said Iran was believed to be increasing its uranium enrichment capacity at its Fordow plant buried deep underground.
Concerns about Europe’s debt crisis remain a bearish factor for oil. Germany and France clashed on Thursday over greater European Union control of national budgets and moves towards a single banking supervisor, before a summit of EU leaders.
In Greece, workers went on strike for the second time in three weeks over wage and pension cuts.

Zero Advance Fee National Apartment Loans Winston Rowe & Associates

If you’re new to multifamily investing you will most likely want to know as much as possible about the world of financing. Winston Rowe & Associates, a national no advance fee commercial real estate advisory and finance firm is there to help.

Apartment and multifamily investors seeking additional information about Winston Rowe & Associates creative, out of the box commercial real estate financing solutions can contact them at 248-246-2243 or visit them on line at http://www.winstonrowe.com

While each apartment building transaction is unique and underwritten on its own merits it’s worth knowing that there are a few basic requirements commercial lenders use.

The Collateral:

The underlying asset is among the first on the lender’s list to review. This is the security the lender uses for taking the risk of lending you money. Therefore, the building you own or looking to buy represents the source of repayment for the commercial loan.

Believe it or not with very few exceptions lenders do not like distressed properties and REOs.

These kinds of properties come with a myriad of problems such as high vacancies, management and tenant’s issues, title, lack of maintenance and or upgrades, local economy, and in many cases inability to service debt. As a result, hard money may be one of the very limited financing options.

For conventional transactions great emphasis is placed on the property and its condition. In case of foreclosure, the lender wants to be sure it has a marketable property. This is the reason for which the lender will typically not allow the borrower to choose the appraiser. The commercial appraisal is detailed and it utilizes three variables to derive the property value: income approach, replacement cost, and sales comparison method.

The income approach carries the utmost important factor in determining the collateral approval. A building could be fancy, well-maintained, and in a great location, but if the income is not there to support the value the collateral does not pass the test.

The Cap Rate:

Among other factors worth mentioning are the age and condition of the property, the vacancy rate, and the area market capitalization rate. The “Cap Rate” is a ratio used to determine a property’s value based on its generated income. It’s computed by taking the rental net operating income (NOI) and dividing it by the property’s fair market value (FMV) or sales price. The lender will then compare the property’s Cap Rate with the general area’s rate for similar properties.

The red flag arises when the ratio is lower than the norm, therefore a higher cap rate is certainly desirable. Conversely, a very high ratio raises another red flag. Rest assured that an underwriter would question why a property has such a high ratio. Are there any underlying issues that could potentially affect the property in the future? Remember that an underwriter has a detective’s eye, he/she is looking for what could go wrong before looking at the positives.

If you’re looking at buying an apartment building something tells me you’d want to first look at the Cap Rate. Often a high ratio means a better deal for you. If the area’s Cap Rate is approximately 8% and the property you’re looking to buy has a 5% ratio you must justify why you’re buying it.

What is it that compels you to pay the higher price? Remember also that the appraisal will put a heavy emphasis on the lower ratio.

Now, let’s do some quick calculations as an example. We’ll assume that you’re trying to determine between two previewed properties. The first property has a NOI of $35,000 and an asking price of $600,000. The second property has a NOI of $15,000 and an asking price of $150,000. Which one would the Cap Rate suggest is a better investment? Obviously, the second property since the Cap Rate is 10% ($15,000 / $150,000) versus 5.8% ($35,000 / $600,000).

On the other hand, if you’re the proud owner of an apartment complex and you want to figure out its estimated value, you can do this by first learning what the area Cap Rate is for your location. Let’s say the area Cap Rate is 8% and your property’s NOI is $42,000. You can then easily determine your value at $525,000 ($42,000 /.008).

The Cash Flow:

Cash flow plays a significant role when underwriting a multifamily loan. Within the industry the cash-flow analysis is known as the Debt Coverage Ratio ( DCR). Such ratio measures the property’s net income ability to cover the annual debt service. The lender will analyze the property’s rent-roll – and the financials – and determine the annual income and expenses. After that it determines if the annual cash flow can service the new debt.

The DCR is calculated by dividing the property’s annual NOI by the property’s projected annual debt service (based on the new loan). Annual debt service includes the principal and interest payment only. Taxes, insurance, and the rest of the expenses have already been deducted when determining the NOI. Lenders are looking to see a minimum of 1.25 ratio, meaning that for every $1 of debt service the property must generate a minimum of $1.25 in net operating income. So, let’s say a building’s NOI is $35,000 while the annual P&I is $27,000 (or $2,250 monthly).

The resulting DCR is 1.29, a ratio within the guidelines. However, a mere increase of a half percent on the rate could bring down the ratio below 1.25 thus putting the loan in jeopardy of being denied.

Borrower Strength:

Most loans funding today are recourse loans. It means that lenders are not satisfied with the collateral only and you, as the borrower must provide a personal guarantee; which implies that your credit and financial strength will be scrutinized. Keep in mind that even if title to the property is vested in the name of a corporation, LLC, or some other form, lenders still require personal guarantees from their owners or members.

Underwriting trend is rather conservative so lenders expect you to prove a great credit history, sufficient apartment building experience, and a decent net worth with a generous amount of liquid funds.

When it comes to the capital invested or equity owned most programs want to see the borrower’s equity at twenty percent or more. Your net worth should look impressive. Fannie Mae, for instance, wants to see the borrower’s net worth be at least the loan amount requested.

Finally, the apartment building is the primary source of collateral and loan repayment, therefore it carries more weight when compared with the borrower during the loan underwriting process. Still, the strength or weakness of the borrower will ultimately impact the approval or denial of the loan.

A loan package meeting these basic requirements creates the foundation for a successful loan approval. However, keep in mind it doesn’t necessarily mean that a transaction that meets the criteria is automatically approved for a loan. Still, not meeting any one of the above requirements will most likely end in denial of your commercial loan request.

The Lending industry is quite chaotic and unpredictable, especially in today’s economic environment. Banks will like your deal today and hate it tomorrow. Most commercial loans are originated today as Portfolio Loans.

This means the lender keeps the loan in their portfolio for the entire term. So, if they find today they have too many retail centers in their portfolio, they will decide – over night and without a warning – to shift to apartment buildings.

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.

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 U.S. Economy Will Struggle Until Sacrifices Are Made – Winston Rowe & Associates

Winston Rowe & Associates, a national no advance fee commercial real estate finance and advisory firm has prepared this article to address fundamental economic issues concerning the future of U.S. economy and commercial real estate.

Readers, who would like to learn more about Winston Rowe & Associates, can contact them at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Not In My Back Yard (NIMBY):

Many American’s are dismayed by our high deficits, but they are quite vague about at government services they are willing to reduce or give up. At the same time most American’s have a not in my back yard (NIMBY) mentality and aren’t willing to cut back on any programs that benefit them.

The elderly want to maintain and increase all their benefits from Social Security, Medicare, and Medicaid. American car owners want to keep their gas-guzzling cars and get better roads, but they oppose any increase in today’s inadequate gas taxes.

American homeowners get more than twice as large a subsidy in tax savings than the federal government spends on all housing programs that benefit lower-income households combined.

It would be fairer to use tax credits for homeowner benefits instead of deductions from taxable income. Then every owner would get the same benefit per dollar spent on interest.

Currently the wealthiest owners get much bigger gains per dollar. Yet home builders, realtors, mortgage lenders, and banks oppose any changes in homeowner tax benefits.

In commercial markets, the federal government provides tax subsidies to developers who build affordable housing and road systems that attract home seekers into new suburban areas.

However, these benefits have been greatly reduced by declines in government revenues.

We Are Ripe For A Foreign Take Over Of Our Banking System:

Unfortunately, most political and business leaders are not willing to be honest with the public and the public needs to honest with themselves. The United States is a democratic republic, hence we did elect (hire) these people to run our States and Federal Government.

What should we do about this worsening situation? First, we should start telling the truth and demand that our political leaders do the same. Yet the truth is not always pleasing to hear. That the United States is going broke and is ripe for a foreign takeover of our global financial sector, which is the true power of our Republic. Currently, China is buying our banks.

Consider the reaction to Washington’s Blue Ribbon Panel recent deficit reduction findings, which proposed a detailed plan for cutting both budget deficits and the nation’s total debt. Nearly every elected politician has objected to its findings because they impose costs on some programs that benefit politicians.

No politician currently in office really wants to reduce our budget deficits and debt in the painful ways that would aid our long-term growth and prosperity. They know that they will either get recalled or not win another term, because we are a nation of NIMBY’s.

Get Ready For National Lower Standards of Living:

In order to escape from our situation of ever-rising debt to pay for consuming more than we earn, most Americans will have to adjust to lower living standards than we got used to from the mid-1990s through 2007. We should not maintain consumer spending at 70% of gross domestic product, but go back to about 60% to 62%.

That means spending more on investment and less on consumption, and changing our tax system to favor investment over consumption. This message isn’t something most elected officials and voters want to hear.

Another truth we must face is that real estate is not going to recover from its weak condition for several more years or decades to come. Housing is going to remain a drag on all property markets as long as unemployment and foreclosures remain high.

Loans on many commercial properties cannot be repaid without a large infusion of equity, which will not be easily forthcoming. Hence commercial foreclosures will increase substantially.

It is in the best interests of our industry to confront the basic problems facing not only real estate, but also the very nature of the American economy. That means facing up to many unpleasant and challenging truths we have been avoiding for a long time — especially living beyond our means by constantly borrowing from abroad.

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

Winston Rowe & Associates provides no upfront commercial real estate 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 Refinancing A Commercial Mortgage Winston Rowe & Associates

WINSTON ROWE & ASSOCIATES REFINANCING COMMERCIAL MORTGAGE

 

Winston Rowe & Associates, a no advance fee commercial real estate finance and due diligence firm. Savvy commercial real estate owners have been turning to them because of their service, integrity and competitive rate and terms.

You may have many reasons for refinancing a commercial mortgage, from avoiding an upcoming balloon payment to lowering your long-term interest rate. But troubles in the commercial real estate sector mean the landscape has changed for businesses that want to work with lenders.

1 What do you Need a New Loan:

Consider carefully why you want to refinance. If you need money in hand for repairs or improvements, you may be seeking a cash-out product. If your current loan product has an adjustable rate, which makes month-to-month cash flow projections much more difficult, you will probably want to investigate a fixed-rate loan. If you have a balloon payment coming due, you will want to refinance into a new loan to avoid that liability.

Knowing what your long-term business goal is will guide you as you choose a loan product and even decide whether refinancing is cost effective or possible.

2 Supporting Documentation:

Prepare all of the documents the lender will need to assess your business. These will include tax returns, balance sheets, profit and loss statements, and a projected cash flow for the project you want to refinance. Many mortgage lenders will require a well-thought-out business plan.

3 The Value of the Property:

Be aware of the current valuation of the property you want to refinance. Especially in the current climate, the property’s value may have changed significantly since the original mortgage funding. This will change your loan-to-value calculation, or LTV, and may even mean you have to come up with additional equity in order to qualify for a refinanced loan.

4 Can You Make The Monthly Mortgage Payments:

Use a debt service calculator tool to make realistic projections of whether your monthly income on the property will cover the mortgage payments for any particular loan product.

5 Personal Credit History:

Consider how your credit may affect the transaction and talk this over with your prospective lender. Bad credit will restrict your options, and can often mean a higher interest rate, but it is still possible to obtain refinancing with less-than-perfect credit. Another vehicle that lenders often use with clients with bad credit is a balloon payment mortgage.

These can prove worth considering, but you should exercise extreme caution, as you are probably committing yourself to another refinance in the near term, with all the associated costs.

6 Advance Fees for Due Diligence & Loan Processing:

Winston Rowe & Associates does things differently, they never charge upfront or advance fees, so find out all the upfront costs of any loan you are considering. They may include appraisal fees, title insurance, environmental reports and lender processing fees–often running into thousands of dollars.

Here is where is it worth considering whether to go with a deal from your current lender, which may lower some of the third-party fees, or whether a competing lender is willing to offer you a deal on its own fees in order to win your business.

You should learn how much of these costs you can roll into the loan amount, and how much you will have to pay out-of-pocket.

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.

Winston Rowe & Associates provides no upfront commercial real estate 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 Financing & Buying A Business Winston Rowe & Associates

Guide To Financing & Buying A Business

Winston Rowe & Associates, a no advance fee commercial real estate due diligence, advisory and financing firm has prepared this article to address the five most common mistakes that first time commercial real estate owners make when purchasing a business.

If you would like more information about Winston Rowe & Associates and their commercial real estate financing programs, they can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

According to Winston Rowe & Associates, the one common denominator that most millionaires have is that, they own their own business.

Owning your own business can be a very financially rewarding experience. The thrill of being the boss and having complete control over your own destiny are the primary reasons people leave the work force to operate their own company.

Owning your own business can easily turn in to a nightmare if you make mistakes. These mistakes are avoidable if you know what to look for in the business.

You have a better chance of becoming a millionaire if you avoid these 5 major mistakes when buying a business.

1) Due Diligence:

Winston Rowe & Associates has found that through their years of experience when performing due diligence for clients commercial real estate business financing. One thing they caution clients on is that not everything is as it seems and that is especially true when buying a business.

The owner can produce financial statements that show a business is thriving. You need to do due diligence to make sure the information presented to you is valid and shows an accurate picture of the condition of the business. For example, will they produce Business Tax Returns to verify the profit and loss statement they gave you?

You want to make sure you know what items the business actually owns, what is leased, what is owed to the business and what the business owes to others. You do not want to buy a business only to find out there is a huge pile of bills that are due and the income you were expecting does not materialize.

Doing a solid job of due diligence is what a firm like Winston Rowe & Associates does that will help you to avoid buying the wrong business or paying too much for the business.

2) Not Having Enough Cash Reserves:

Running a business requires capital. Successful businesses are able to generate enough revenue to cover the cost of their expenses. In times when the revenue is less than the expenses then you need cash reserves to cover the shortfall. If you spend all your money in the acquisition of the company then you will not be able to cover shortages when they occur. This can be the quickest way to bankrupt your new business.

Winston Rowe & Associates always recommends to clients not buy a business until you have the necessary funds to both buy the business and the necessary funds to keep it open after the purchase.

3) Cash Flow & Debt Service Coverage:

There will always be a transition period when buying a new business. Some vendors will have a loyalty to the seller and will pull their business when management changes. Likewise you might lose some of your buyers after the transition. These changes are unavoidable. They can have a tremendous impact on the cash flow of your business.

If you purchase a business assuming the current cash flow will cover the payment on your debt, then you might be in for a rude awakening. Working with Winston Rowe & Associates will ensure that the business you are financing will support the monthly mortgage payments and show a profit.

4) Don’t Pay For Future Potential:

Sellers will try to set a price on a business based on the projected value of the business. For example a self-storage business that is 40% occupied at the time of purchase may be worth $1 million dollars. If the occupancy rate was 80% then the value of the business might increase to $2 million dollars. You should not pay $2 million for the business because the seller entices you on the future potential of the business.

It will be your time, effort and energy that create the future potential in the business. You should be awarded for your efforts. Do not make the mistake of over paying for a business and rewarding the seller for your hard work.

The value of the business should be based on the condition at the time that you purchase it.

5) Wrong Finance & Entity Structure:

The worst mistake that you can make is to buy a business using the wrong entity structure. First time business owners will buy a business and sign every contract in their name. This is a major mistake because it makes you personally liable for any loss that the business incurs.

If there is loss your creditors will go after your home, your car, and your savings. Buying a business using an entity structure such as a corporation or a LLC can minimize your personal risk.

Use an advisory and finance firm like Winston Rowe & Associates to ensure that you have the correct financial qualifications and a business attorney and an accountant to help determine what the best entity structure for you to use is.

Do not make the mistake of putting everything you own at risk when you buy a business.

Owning your own business can be the quickest path to becoming a millionaire but you may never reach that goal if you don’t avoid these 5 major mistakes when buying a business.

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.

Winston Rowe & Associates provides no upfront commercial real estate 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,