Easy-to-Avoid Apartment Building Maintenance Mistakes

If you are not careful, costs and complications of maintenance projects can quickly skyrocket out of control.

Take steps to avoid these common maintenance mistakes so you don’t wind up with more than you bargained for:

Hiring contractors without checking references. You wouldn’t rent to someone without checking them out first, so don’t make the same mistake with contractors. The only way to be certain that the person you have chosen does good work is to talk to previous customers.

Be cautious about who you allow into the rental property. Fixing a botched repair or remodel can cost more than the original work.  And just imagine the liability you’ll face if the contractor has a criminal past.

Choosing cost over skill. Low bids are hard to turn down, but be skeptical — you get what you pay. Chances are the person has a skeleton to hide — like disgruntled clients, no insurance — or worse. Strike a balance, and find someone who has at least the minimum skills needed for the job at the most reasonable price.

Allowing tenants to do repairs. Sure, the tenant may be eager to fix the place up, but rest assured, they’ll want something in return. Chances are they’ll ask for more than you would have paid someone with talent. Asking tenants to supervise contractors is another big mistake because they won’t be as cost-conscious as the landlord.

Unpaid contractors can lien the rental property. Encourage tenants to report repairs, then step in and get the job done.  Don’t give the tenant the opportunity to run up a large bill.

Not fixing the little things. Routine maintenance is a must-do, regardless of how long a tenant is staying in the property. Check in periodically and look for minor things that will gobble profits if left unattended — like pesky water leaks, roof damage, poor drainage, or wobbly railings.

Failing to give tenants notice. While landlords can usually come into a rental for emergency repairs, in just about every other case, the tenant is entitled to notice.

Failure to provide that notice not only stirs up bad feelings, but the tenant may claim everything from theft to breach of the lease.

When speed and experience are important and crucial to your Apartment Building investing success, a principal at Winston Rowe & Associates is always available to speak with prospective clients. They can be contacted at 248-246-2243 or email them at processing@winstonrowe.com

If you would like to learn more about apartment building financing options from Winston Rowe & Associates you can check them out online at http://www.winstonrowe.com

What Is Commercial Real Estate Bridge Financing By Winston Rowe & Associates


For those who are new to investing in real estate, a common question is, what is bridge financing?

A better question is, what is bridge financing and how does it benefit commercial real estate investors?

Bridge financing is short-term financing, sometimes referred to as private money or hard money. Bridge loans are typically made by private individuals and not banks, so the interest rates on bridge loans are higher than bank loans.

Many of the commercial real estate investors who were able to purchase distressed commercial properties in recent years made out very well. In order to act on multiple opportunities at the same time, many real estate investors have turned to bridge financing.

Bridge financing benefits investors in 3 important ways:

First: Bridge financing allows investors to make their money go further. For example, if two properties come together at the same time, an investor can purchase both properties using a bridge loan on each purchase.

Second: Bridge financing removes partners or family members from a deal. Investing with family members or business partners can be tricky. Bridge loans can remove other partners from the equation, allowing an investor more freedom and flexibility with a newly acquired asset.

Third: Bridge loans fund faster than bank loans. If an opportunity is good, it won’t last long. Bridge loans have less requirements than bank loans and thus close quicker. Bridge financing allows investors can grab a fleeting opportunity before another investor snatches it up.


Tip’s For Dealing With Delinquent Tenants By Winston Rowe & Associates

Tip’s For Dealing With Delinquent Tenants By Winston Rowe & Associates

If it happens to you, time is of the essence, and it’s important to have a well-conceived plan already laid out.


Adopt policies that make it easy to pay rent on time, and difficult to pay late. For example, accepting electronic payments, credit cards, or direct deposit make it easy to pay on time.

Stress the importance of on-time rent payments at leasing.

Send out an invoice with return envelope enclosed.

Make sure the rent due date is realistic (i.e. it coincides with when they receive their paychecks).

Diplomat or Enabler

Evictions are expensive and time-consuming. So is finding a new tenant. From this perspective, it is tempting to try to work something out with your delinquent tenant. Occasionally you’ll have a tenant who has genuinely experienced a temporary financial hardship, one that is resolvable, and it can be in your best interest to help them through their rough patch.

But here’s the hard reality: The majority of late paying tenants will do it again. Not paying rent is a big deal, and it’s in your best interest to make the tenant understand that.

Accepting payments late with no consequences, or accepting partial payments not only encourage late payers, but it can compromise your rights to re-take the property. The longer you allow a late payer to string it out, the more you risk becoming an enabler.

Be Prepared for Battle

Even though it may be in your best interest to help ethical tenants through a rough patch, experience dictates that if your tenant launches a habit of late pays, it will get worse with time. There is always the chance that your tenant is stringing you along intentionally, trying to live rent-free while they save money or search for another place to live. You need to know what your legal options are and be ready to take action.

Collect Your Due

Once a tenant account goes seriously delinquent, your likelihood of successfully collecting the debt drops precipitously. Therefore, it is crucial to aggressively pursue the debt with all means at your disposal. This includes submitting the debt to a collection agency and employing all legal means of collection.

When speed and experience are important and crucial to your apartment balding investing success, a principal at Winston Rowe & Associates is always available to speak with prospective clients. They can be contacted at 248-246-2243 or email them at processing@winstonrowe.com

Whether it’s an initial apartment building purchase or a refinance they have the solution for you. Winston Rowe & Associates offers expert friendly service combined with years of experience and will work with clients to find the best solution that fits your needs.

If you would like to learn more about apartment building financing options from Winston Rowe & Associates you can check them out online at http://www.winstonrowe.com

Announcing 70% LTV Commercial Bridge Loans No Upfront Fees

Winston Rowe & Associates is pleased to announce one of the most competitive commercial real estate bridge loan solutions in the Nation.

At 70% loan to value (LTV) with a core focus on the commercial asset, this bridge loan is designed for borrowers that need fast funding in days, not weeks or months.

Their bridge loan program is designed for small and medium sized business needing capital deployments from One Million to Fifteen Million Dollars.

Winston Rowe & Associates Program Highlights:

• No Upfront or Advance Fees

• Amortization Interest Only

• Interest Rates Starting at 8%

• Loan Terms from 12 to 36 Months

Funding Uses:

• Time Sensitive Situation

• Property Acquisition

• Note Acquisitions

• Rehabilitation & Redevelopment

• Lease Up & Stabilization

If you would like to learn more about commercial bridge financing options for your business from Winston Rowe & Associates you can check them out online at http://www.winstonrowe.com

Whether it’s an initial purchase or a refinance they have the solution for you. Winston Rowe & Associates offers expert friendly service combined with years of experience and will work with clients to find the best solution that fits your needs.

Successful California Apartment Building Management

That’s the mantra of successful property managers who have learned that, rather than being static, leasing properties is an ongoing process.

That process relies on building relationships with everyone who can affect the profitability of your business. Here’s how to follow their lead:

Don’t Ignore Tenants:

Going weeks without communicating with your tenant is like not showing up for work. Your silence speaks volumes.

Confused tenants may assume you don’t care, leading to all sorts of problems, such as not reporting repairs, paying rent late or skipping out.

Make Nice with Contractors:

Successful property managers don’t pay top dollar for repairs — but you will if you don’t nurture relationships with contractors,  including those that you might need on a regular basis and in emergencies.

Treat contractors well and they’ll be more  likely to respond quickly when you need them most, and will treat you fairly when it comes time for the invoice.

Know the Neighbors:

Having a relationship with neighboring property owners is like having eyes in the back of your head. If they know you and have your phone number, you’re much more likely to find out when your tenants are acting badly — possibly even in real time so you can catch them in the act when they’re doing something that would upset you.

Neighbors who know you are far more likely to call you before they call the police or other agencies to resolve potential problems.

Build Community.

Show you have some skin in the game by developing relationships within the community. Showing you care about the neighborhood can be as simple as keeping the property well-maintained.

Develop credibility with other landlords, neighboring property owners and the police by participating in neighborhood meetings or a local crime-free program. Take up a cause like helping the local animal shelter or a youth sports team. Pull tenants in so they feel a part of the neighborhood.

This not only increases tenant retention but can lead to more tenant referrals, thus reducing your tenant acquisition cost as an extra bonus.

Winston Rowe & Associates offers superior California apartment building financing solutions, whether it is for purchases, cash outs or refinancing.

If you would like to learn more about California apartment financing options for your business from Winston Rowe & Associates you can check them out online at http://www.winstonrowe.com

California Apartment Owner Lease Tips Winston Rowe & Associates

California Apartment Owner Lease Tips

Because a lease controls the legal rights of both tenant and landlord, it’s important to make sure that yours is in order.

Here are five potential problems that could hamper your efforts to protect your hard-earned profits:

1. Lease agreements should be easy to distinguish from the pile of leasing forms and disclosures. Make sure it is clear where the lease document begins, what attachments it includes, and where it ends. That way, it is easy to prove what the tenant agreed to when they signed.

2. Any subsequent amendments or renewals should be attached to the original lease, or a copy of the original lease, for easy reference. Otherwise, it’s surprisingly easy to lose track of the current terms.

3. Always give the tenant a copy of the lease, including all attachments and amendments. They are more likely to comply with the lease if they can refer back to its contents. Also, if they have a complaint, they can show the documents to their attorney. If everything is in order, the attorney may discourage any frivolous legal action.

4. Make sure all adult occupants are on the lease, so it is clear that the rules apply to everyone. Always have current contact information on all occupants in the event you need to take action. Evictions are hard enough without having to hire an investigator to find out who is living in your rental property.

5.  Be careful about the lease language — don’t just throw in every provision imaginable.  Illegal provisions can void the entire lease agreement. Always start with a strong, comprehensive lease agreement that is state-specific.  Once you have the provisions you want, run it past an attorney to make sure it includes all of the protections you need.

If you would like to learn more about California apartment financing options for your business from Winston Rowe & Associates you can check them out online at http://www.winstonrowe.com

Asset-Based Lending & The Great Recession Winston Rowe & Associates



The last three years of financial crisis and recession have brought a host of new economic-business situations. Not since the Great Depression, many say, has the precipice of a global financial collapse seemed so near.

Asset Based Lenders:

Yet, even as the flow of capital from a broad spectrum of lenders slowed to a trickle during the financial crisis and subsequent global economic pain, asset-based lending (ABL) remained a viable form of corporate finance. While some large financial institutions virtually stopped lending in the face of uncertain earnings and many regional banks labored under the weight of defaulting real estate loans, struggling businesses turned to asset-based lenders to help restructure their costs and stabilize earnings. Other lending vehicles tend to ebb and flow, following economic peaks and valleys, but ABL can be adapted to changes in the marketplace, whether resulting from economic conditions, new legislation, or the emergence of new industries.

In the mid to late 1980s, investors recognized inefficiencies in the market, finding that many corporate balance sheets undervalued their assets and were greatly underleveraged for financing purposes. Such investors initiated a leveraged buyout tsunami by focusing on undervalued corporate balance sheet assets and creating huge investor demand for high-yield bonds to finance large corporate buyouts. Using the same techniques, middle market investors convinced asset-based lenders to provide senior and junior liens to facilitate such acquisitions.

Retail financing was the next new market growth area for asset-based lenders in the 1980s and 1990s. Retailers’ suppliers manufactured consumer goods with the financial support of factors, which typically required a retailer to have unsecured bank debt from a commercial bank. At that time, retailers were experiencing erratic sales and pressure on profits, and many also carried high debt from aggressive lenders supporting past mergers, acquisitions, and internal expansion. Many of these retailers became distressed and went into default with their unsecured lenders, requiring additional funds to survive.

In the 1990s, further expansion in ABL occurred in Canada, where “A banks” were dominant and there were no lenders of last resort, aside from the factoring of accounts receivable. Canadian banks could quickly call a loan and go into straight liquidation since these markets were found to be much more lender-friendly in the courts. Although the concept of ABL to distressed businesses was nonexistent at the time, a few U.S. lenders began to introduce ABL in Canada and made a strong commitment to that market. Later, other lenders followed.

The Great Recession:

ABL emerged as the dominant vehicle for lending during the most recent recession because of the disappearance of other lending vehicles. The cost of funds and credit problems hurt non-bank lenders, such as commercial finance companies, collateralized loan obligations, and hedge funds, and drove many well-known finance companies out of business. To offset the higher cost of funds, a few lenders focused on cash-flow lending to obtain the higher interest rates and fees associated with acquisition financing. Once the cash-flow window dried up, however, ABL became the only viable alternative.

Traditional commercial bank lenders, who thrive on profitable businesses with reasonable leverage, saw their borrowers incur losses that resulted in unacceptably high leverage. Many of these commercial banks also had real estate problems in their portfolios and were forced to curtail other lending activities. Asset-based lenders with strong balance sheets grew during the recession by refinancing these leveraged orphans of commercial banks.

The Recovery:

Many businesses lost a significant percentage of their sales in 2008 and 2009 yet were able to survive by reducing their operating costs, usually achieving their largest savings by reducing labor costs. They also shifted their focus on market replacement and drove down their production levels to more probable levels of demand and revenue.

When sales rebounded in 2010, these businesses immediately experienced increased profitability. Asset-based lenders helped many recovering, highly leveraged businesses to leave their existing disgruntled lenders and provided them with fresh starts. These businesses had good financial outlooks as a result of a few months of positive earnings, stronger sales backlogs, and quantifiable labor and other cost savings. Asset-based lenders booked many loans in 2010 to these recovering businesses.

At the end of 2010, many private-equity firms anticipated capital gains tax increases in 2011. Faced with fewer, if any, exit strategies, investors owning strong private companies with ample excess availability took large distributions financed by asset-based lenders. This benefited lenders by increasing loan utilization by good borrowers, after they had earlier experienced record low levels of utilization as a percentage of the total line of credit.

Many asset-based financings in 2011 involved businesses like capital goods manufactures that had lagged other companies that had benefited from the improved economy of 2010. During the recession, many businesses had delayed capital expenditures to conserve cash and because they had downsized to much lower capacity levels. But special tax breaks that permitted 100 percent depreciation of capital expenditures made in 2011 spurred demand among many businesses that had delayed such purchases earlier. ABL was used not only to finance purchases of many of those capital goods, but also to finance the companies that manufactured them.

Historically Adaptable:

As demonstrated by its track record during wildly diverse markets over the past 30 years, ABL historically has adapted to changing times and economic conditions. A borrower who is unhappy with its current lender may want to test the market in today’s environment. A business that has a quantifiable story, a strong management team, and improving cash-flow trends should find willing asset-based lenders whose criteria cover a wide spectrum of industry specialties, credit parameters, and levels of risk to provide financing, along with relationship managers/loan officers to offer business advice in good times and bad.

If you would like to learn more about lending options for your business from Winston Rowe & Associates you can check them out online at http://www.winstonrowe.com

They have some of the most aggressive rates and terms available, while managing every step of the financing through their advisory and due diligence processes from document collection to commitment negotiation and closing.