Hard Money Bridge Loans No Upfront Fees

Winston Rowe & Associates is a no advance fee commercial bridge loan specialist, bringing significant experience and proven success in executing today’s time-sensitive commercial bridge loans to real estate operators, owners and borrowers nationwide.

Winston Rowe & Associates has senior bridge loans for borrowers in the apartment, office, retail, residential, hospitality and industrial sectors, to name only a few.

Winston Rowe & Associates operates as a niche capital provider in the commercial real estate arena, offering the ability to provide both debt and equity to real estate developers and borrowers in opportunistic circumstances.

Winston Rowe & Associates takes pride in being one of the few commercial loan advisory and investments banking platforms in the nation offering access to billions of dollars worth of capital specifically meant for commercial real estate financing.

Winston Rowe & Associates provides no upfront or advance fee commercial bridge 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

Hard Money Bridge Loans No Upfront Fees

Winston Rowe & Associates, a leading hard money firm specializing in commercial bridge loans for acquisition, refinances bankruptcies and foreclosures.

Their creative financing expertise enables them to quickly find solutions equity-based commercial bridge loans of $1 million to over $50 million in as little as 5 days,

Winston Rowe & Associates allows borrowers with assets to get the hard money commercial loans they need super-fast. So, no matter where in the USA you do business, they can make getting a hard money loan fast and easy.

If you would like to learn more about commercial bridge financing options for your business from Winston Rowe & Associates you can call them at 248-246-2243, a principal is always ready to speak with prospective clients. Or you can check them out online at http://www.winstonrowe.com

Winston Rowe & Associates Program Highlights:

No Upfront or Advance Fees

National Coverage

All Commercial Property Types Considered

Amortization Interest Only

Interest Rates Starting at 6.5%

Loan Terms from 12 to 60 Months

Winston Rowe & Associates has strong relationships with a finite number of direct private capital, private equity, hedge funds, agency investors and regional and national commercial banks, each with a highly targeted financing practice.

They have a best business practices model ensures that their clients receive lighting fast funding with the most aggressive rates and terms available, while managing every step of the financing process from document collection to commitment negotiation and closing.

Winston Rowe & Associates provides no upfront or advance fee commercial real estate hard money bridge 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

California Hard Money Bridge Loans

Commercial Hard Money Bridge Loans No Upfront Fees

California Hard Money Bridge Loans No Upfront Fees

Hard Money Bridge Loans No Upfront Fees

Hard Money Asset Based Lending

Asset-based, hard money loans are made by private money lenders which are non-institutional (non-bank) capital sources, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction.

They use a very strict set of rules regarding the collateral status of the physical assets being used to obtain a loan.

What is Hard Money Used For:

This type of financing is used for high risk business transactions that traditional banks or institutions will not lend on.

For example; Chapter 11 Bankruptcy, commercial property that is vacant or needs rehabilitation and other types of high risk business ventures, turnaround situations, short-term bridge financing and for investors who want to purchase properties to fix and flip.

Types of Collateral Used:

Asset based lending comprises business or a real estate loan secured by the liquidation value of their assets, generally at quick fire sale values.

A recipient receives this form of financing by offering real estate, inventory, accounts receivable and/or other balance-sheet assets as collateral.

Common assets that are provided as collateral for a hard money loan include physical assets like real estate, such as land and physical properties, company inventory and manufacturing equipment, or physical commodities.

If the borrower fails to repay the loan or defaults, the hard money lender can seize the collateral and sell the assets in order to recoup its loan amount.

In many cases the collateral to secure the loan is two times the value of the loan; hence the hard money lender will make a substantial profit even if the loan defaults.

Due Diligence and Underwriting:

Prior to authorizing a loan, lenders require a relatively lengthy due diligence process, which includes the inspection of the real estate, balance sheet, ledgers and assets to calculate the value of a company’s allowable borrowing capacity.

Costs associated with this analysis vary, but common charges include site visits, collateral evaluations and interest costs.

Hard Money Lending Source:

The objective at Winston Rowe & Associates is to add value to a client’s commercial real estate acquisition or refinance by offering a wide range of hard money, asset based financing solutions for; apartment buildings, hotels, shopping centers, office buildings, industrial property, raw land, medical offices, manufactured home developments and construction projects.

Hard Money Commercial Real Estate Loans

Winston Rowe & Associates, a national no upfront fee non investment advisory and due diligence firm specializes in assisting clients in the structuring of complex commercial real estate financing solutions.

They have direct relationships with a finite number of private capital, private equity, joint venture, hedge funds, agency investors and regional and national commercial banks, each with a highly targeted financing practice.

In many cases they can provide a solution in days, not weeks or months.

How To Invest In Multifamily and Apartment Buildings Winston Rowe & Associates

Winston Rowe & Associates has prepared this article to provide prospective clients with a strategic overview of the mechanics of investing in multifamily and apartment buildings. Winston Rowe & Associates is a national commercial real estate finance firm specializing in no advance fee loans.

For more information about apartment building investing you can go to http://www.winstonrowe.com or contact Winston Rowe & Associates directly at 248-246-2243.
Overview:

Rental property that has more than one family unit is considered multifamily property. From a duplex (two units), the smallest multifamily property, up from there to larger rental complexes easily consisting of hundreds of apartments.

The advantage of purchasing multifamily properties, not unlike all income property, is that it provides real estate investors with the ability to support debt from the income the property produces. Understood in real estate investing circles as “using other people’s money”, this idea is crucial to buying multifamily properties profitably and therefore must always be kept in mind because the success or failure of the investment depends on the income the property generates to meet debt service and other obligations required to keep the property.

Enough said. Let’s look at three elements that contribute to this principal, and discuss why they are crucial to buying multifamily units profitably.

Obtaining Financing:

The key to buying any investment property is for you to establish a sound financing package. You want to obtain a loan that doesn’t place excessive burdens on the property, or yourself. Also, given that lenders evaluate multifamily real estate based on income stream and generally structure a loan based on the property’s financial strength as well as the investor’s, bear in mind the significant role the principal of using other people’s money plays in financing the investment.

When applying for a loan on a multifamily apartment, present lenders with clear and concise cash flow reports because you are more apt to obtain a favorable financing package when the property is represented fairly to the lender and the income and operating expenses are shown to be accurate.

Research & Market Analysis:

What tenants are willing to pay to occupy a unit in the apartment is the cornerstone of the investment. Therefore, it’s incumbent upon real estate investors to understand local rental market trends for vacancies and rental rates when buying multifamily real estate property. Rental market trends are easy for investors to recognize, just watch the newspaper or drive around the community noting all rental properties that have vacancies. If you see few for rent ads or signs, or surmise that rents are increasing, it probably signals a shortage of rental units, and a favorable opportunity for you. On the other hand, when lots of rental signs start appearing and rents drop, it could spell trouble for multifamily real estate.

If you’re looking for real estate properties for commercial investing or need background information on an asset? The following link will take you directly to Winston Rowe & Associates Free commercial real estate and investing resources:

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

The best time to own multifamily property, naturally, is when vacancy rates decrease and tenants are standing in line to rent an apartment. Apartment property owners can be more selective about the type of tenant they rent to and establish a positive direction for the complex, perhaps even increasing rents.

On the other hand, when tenants become scarce, owners might have to become less selective about tenants and perhaps lower the rents just to fill the units.Be sure not to neglect a rental market survey whenever you purchase multifamily property. It’s always crucial to gauge the rents and vacancy rates.

Economic Conversion:

There might be money to be made in cases where the former property owners have let the property run down and rents had to be decreased to keep the units filled. If these rental properties are in a good area of town or in an area that is returning to a former higher quality, then the remodeling of a rundown apartment complex can be a profitable venture. Just make sure that you ascertain the cost for remodeling and understand what impact it will have on your income stream.

Pure window dressing for the sake of appearances only, unless it has a positive influence on occupancy levels or rents, is typically avoided by prudent real estate investors. So get a qualified contractor to give you a bid on remodeling. Otherwise, what you surmised as surface issues when you were buying the multifamily units could in fact be a costly can of worms.

In other words, look for an opportunity to upgrade the building and raise rents because it can contribute to a profit, just be sure that you know exactly what you’re getting into.

Pros & Cons of Buying Multifamily Property:

The most obvious advantage of buying any income property is real estate investors can grow wealthy in the long run. Holding on to investment property and simply letting other people’s money payoff the debt, even if there is no immediate cash flow, is what drives people into real estate investing. Moreover, because multifamily properties serve a basic need in that they provide shelters to those who cannot afford or who do not choose to buy real estate, the downside risk to multifamily investing is limited.

The downside to owning rental property mostly concerns the management problems associated in dealing with tenants. Multifamily properties can be management intensive, and often the reason why investors who purchase rental property hire the services of a professional property management company to deal with the day-to-day issues of running the property. So you can choose to minimize this disadvantage if you care to.

The bottom line is straightforward. Multifamily property provides investors the opportunity to build wealth. Nonetheless, it’s similar to investing in any other type of investment property, whether it’s land or commercial real estate or apartments, it simply requires you to do it correctly, and with a careful eye on the elements discussed here. Here’s to you and your real estate investing success

Winston Rowe & Associates success is measured by their clients’ success, and their mission is to be your source for the most appropriate – and advantageous – apartment building financing solution that helps client achieve their goals.

Buyers of Commercial Notes

Buyers of Commercial Notes

Winston Rowe & Associates Completes $1,000,000. Apartment Building Loan

Winston Rowe & Associates a national no upfront fee commercial real estate financier is pleased to announce the financing of a $1,000,000 129 unit apartment complex in Vicksburg, MS.

This was an extremely challenging transaction to complete their clients business declined when the recession hit, business plummeted, the personal credit score dropped, and owed back taxes and the apartment building suffered significant deferred maintenance.

Once the borrower was able to stop the free fall, the client’s financial situation was such that he was unable to find financing through traditional lenders.

At first glance, a half-vacant apartment building in Mississippi, with back property taxes and whose owner had less than ideal credit might not seem appealing to most lenders, but Winston Rowe & Associates was able to look past the flaws and develop a custom solution for their client.

Despite being half-vacant, the property had enough equity to provide an adequate loan to pay off the delinquent taxes, rehab the vacant units, and pay off the existing mortgage. By keeping a low loan-to-value, their capital source was willing to take a chance on this loan, despite the borrower’s poor credit.

How to Subdivide A House Into A Multifamily Unit

Winston Rowe & Associates is an advisory and due diligence firm that specializing in apartment, multifamily and commercial financing, without upfront or advice fees.

They have prepared this news article about multifamily investing.

Overview:

A current popular trend is to take a single-family dwelling and convert it into a multifamily unit. There are many reasons for why this is done. Most often, the landlord sees extra dollar signs when it comes to subdividing a property where there can be multiple tenants.

Eliminates Unoccupied Homes:

In many parts of the country, affluent people have purchased or have had built larger homes. As the neighborhoods grew older, or the city had grown, the rich would sell their homes and move someplace else. By subdividing a larger, more expensive home, it allows people who may not be able to afford to live in such a large house to be able to share apartments within it.

Providing Apartments During Housing Shortages:

A reason landlords subdivide single-family dwellings is to provide apartments during periodic housing shortages. In some areas, housing shortages exist and young families and single people are unable to find affordable housing. A large single-family home that would normally be vacant could provide acceptable housing for people who need it.

Zoning:

Before you take that first step toward subdividing a home into apartments, you will need to check the zoning regulations in your area to make certain that what you are doing is legal in your municipality.

Multifamily financing from Winston Rowe and Associates:

No Upfront or advance fees

Purchase, refinance and cash out

Capital deployment start at $500 thousand with no upper limit

National Coverage

Hard Money, CMBS, Hedge Funds, Private Capital and Agency financing available

The goal at Winston Rowe & Associates is to add value to client’s acquisition or refinance by offering a wide range of financing solutions and direct access to top national, regional, and local retail banks, hedge funds and private capital lenders.

When you call Winston Rowe & Associates, a principal is always available to speak with prospective clients.

They can be contacted at 248-246-2243 or check them out on line at http://www.winstonrowe.com

Net Income Multiplier For Business Valuation

The strength of this calculation is in its simplicity, because it requires only two pieces of data to compare properties or extrapolate comparable property values.

The net income multiplier (NIM) is the reciprocal of the capitalization rate. As with the cap rate, you use this to express the relationship between a commercial property’s value and its net operating income (NOI) for the current of the coming year.

The NIM represents the amount that a typical commercial property investor would pay of each dollar.

First, you want to establish the prevailing cap rate for similar commercial properties in your market area.

Second, you find the reciprocal of that rate, the result is the NIM.

Finally, when you see the NOI of a prospective commercial property investment, you multiply the NOI by the NIM to get a quick reading of the commercial property’s value.

How to calculate the NOI:

To calculate the net income multiplier (NIM), take the prevailing, market driven cap rate and find it’s reciprocal.

Net Income Multiplier = 1  /  Capitalization Rate

To us the NIM to estimate a property’s value, multiply by the net operating income (NOI).

Present Value = Net Income Multiplier  X  Net Operating Income

Winston Rowe & Associates, prepared this knowledge based article. They are a no upfront fee commercial real estate advisory and due diligence firm that specializes in financing of commercial real estate transactions.

They can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com

Investing In Multifamily Housing and Apartment Buildings Financing Alternatives

Winston Rowe and Associates, a no upfront fee commercial real estate financier. They‘ve developed a comprehensive mix of highly customized multifamily housing and apartment building funding solutions.

When it comes to investing in multifamily housing and apartments properties, often times the difference between a good investment and a great investment is financing.

For more information about Winston Rowe and Associates you can contact them at 248-246-2243 or check them out on line at http://www.winstonrowe.com

Multifamily housing and Apartment Financing Options:

Conventional Purchase, Refinance and Cash Out

Nationwide

75% LTV purchase

60% LTV Refinance

Minimum capital deployment $1 MM

Hard Money and Private Capital Purchase, Refinance and Cash Out

65% maximum loan to value

Minimum capital deployment $500,000

Chapter 11 Debtor in Possession Financing

50% maximum Loan to Value

Minimum capital deployment $1 mm

Discount Note Financing

Maximum Loan to Value 60%

NO new cash required

Minimum capital deployment $1 mm

The goal at Winston Rowe & Associates is to add value to client’s acquisition or refinance by offering a wide range of financing solutions and direct access to top national, regional, and local retail banks, hedge funds and private capital lenders.

Guidelines for CRE Debt Restructuring for Apartments and Multifamily Winston Rowe and Associates

Winston Rowe & Associates, a no upfront fee commercial real estate advisory and due diligence firm, specializes in providing funding solutions for commercial real estate transactions

They have prepared this article to provide advice for refinancing or debt restructuring for commercial real estate.

For more information about Winston Rowe & Associates and their commercial loan programs, they can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Debt Restructuring loans are a common type of commercial real estate loans. Listed below are some of the key detail items that lenders consider when reviewing this loan type.

First.  What is the reason for the refinance and why are you not working with your current mortgage holder?

Some questions your new lender will have are: Did you violate a covenant in your current mortgage agreement? Did your property drop in value? Are there economic problems in the area your property is located? Do you have personal net worth or liquidity issues? Did you shop your loan request to death creating high risk profile with too many credit report inquiries in a short period of time? Just to name a few.

Second. The commercial refinance loan criteria are very straight forward. Your maximum loan to value (LTV) will be 60%. You will need to have a minimum personal FICO score of 680 with no bankruptcies in the previous 7 years. Your personal net worth will have to be equal or greater than the gross refinance amount and the occupancy rate will have to be 80% for a conforming loan.

Third. The supporting documentation will include the review of the last three years of your personal and business financials as well as rent rolls. If there are improvements to be made to the subject property you will need to submit a detailed plan with the necessary permits.

The key to a smooth refinancing process is to be truthful on your loan application and to fully cooperate with the due diligence and underwriting specialists “this is how I do it” approach does not work. If you don’t cooperate and misrepresent material facts, you will most likely not receive your commercial loan.

At Winston Rowe & Associates, their primary objective is to provide the most reliable and efficient means of sourcing both debt and equity funding for your commercial real estate loans.

Common Maintenance Emergencies For Multifamily Properties Winston Rowe & Associates

The goal is to solve the emergency as quickly and safely as possible. And with a result that both property managers and tenants will feel satisfied with the way their discomfort was addressed and resolved.

1 Flooded Basement or Ground Floor:

Generally caused by piping failures or harsh weather, indoor floods are just as dangerous as they are inconvenient.

Flood water cause major health complications, these range from being exposed to sewage, inviting mosquitoes and parasites, and kick starting toxic mold growth.

Get started with clean-up and repair efforts as quickly as possible, especially to salvage materials and avoid thousands of dollars worth of damage.

If the cause of the flood can be easily identified as a burst pipe, the water supply must be immediately turned off. If the flood has reached exposed outlets, plugs, and wires, it’s then important to turn off power and contact a professional for the assessment of whether the area presents a serious electrical hazard.

Pumps, wet-dry vacuums and eventually fans and dehumidifiers can be helpful with drying out the space once the majority of the water has been drained.

If the flooding is unrelated to burst piping, it’s adequate to contact a professional for the assessment of whether the flood water is dangerous/toxic, and proceed with water removal and repair. Consult a second expert contractor regarding how floods can be prevented in your particular case (adding insulation, creating barriers, reconfiguring basements, etc.)

2 Bursting Pipes:

A frozen pipe that bursts means water can find its way inside a property.

In case of a burst pipe, immediately turn off the water supply. If the space is flooded, it’s appropriate to proceed as described above, with initial safety checks followed by water and furniture removal.

It’s then fundamental to contact a professional plumber for the repair of the burst section, but also for a consultation regarding how it would be best for your case to prevent burst pipes in the future.

3 Water Heater Bursts:

A burst water heater will try to continue re-filling, causing water to continue on spilling and flooding the space.

First, if the heater is electric shut off the breaker to power it down. Gas heaters need to be shut off by utilizing the proper valve.

It’s best to then call the manufacturer of the appliance and your insurance company to resolve how to repair or replace the heater, and whether any items are protected under your insurance package.

4 Pilot Light Shutting Off:

A tenant waking up in a house or apartment without hot water is a particularly uncomfortable experience.

A water heater or furnace without an active pilot light is likely what is causing the problem.

Fortunately, some appliances feature ignition buttons for easily relighting the pilot light. But, this must be done safely. The gas supply needs to be cut off and the area around the appliance needs to be allowed to be properly ventilated.

If you smell the characteristic “rotten egg” scent of natural gas lingering in the space and the smell persists for longer than an hour, leave the property and call the utility company.

You need a professional to check whether there is a gas leak or any gas-related hazard, investigate the issue, and determine whether other parts of the system should be addressed and replaced.

5 Junction box and Electrical Fires:

Old or incorrectly set-up wiring can be responsible for sparking dangerous electrical fires.

While junction boxes are supposed to help with containing sparks, they are no help if a fire actually catches on.

If smoke or visible flames are spotted, the electricity must be immediately shut off, and the fire department should be alerted.

If flames are burning, it would be adequate to have a Class C or multipurpose fire extinguisher at hand to try and put out the fire as long as it is safe to do so. Following the incident, contact an electrician to check on your property’s wiring to determine what caused the issue.

6 Backed-Up Septic Tank:

A backed-up septic tank will overflow
and allow spilled toxic waste to flow near or even into a property.

This is not just disgusting and smelly, but also dangerous and damaging.

Septic waste carries bacteria and disease, and can impregnate and linger into most surfaces it touches upon contact.

The best way to address this issue is to be proactive with clean-up, removing waste as it surfaces and removing – ideally disposing of – any contaminated furniture and objects. Spaces should be disinfected with a bleach solution, and a septic tank specialist should be called immediately to investigate the source of the problem.

7 Roots Growing In Sewer Line:

Tree roots are naturally attracted to the nutrients and moisture that are found within sewer lines.

Roots can easily sense and access pipes that are cracked or damaged by wear and time.

As roots infiltrate the system and grow longer and larger, the line can be completely burst or become backed-up, which becomes visible by above-ground or in-home resurfacing of sewage.

If waste floods a space, proceed as outlined in the “backed-up septic tank” scenario.

In these situation, it is best to contact a professional to arrange the removal of the tree completely, and it is fundamental to try and avoid planting trees within 10 feet of a sewage line, or implement an underground barrier system to protect pipes.

Winston Rowe & Associates published this article, they are national commercial real estate financiers and publishers of  Free eBooks.

You can contact them at 248-246-2243 or visit them online at http://www.winstonrowe.com

Calculating A Commercial Lease Rent Per Square Foot

Typically, commercial space is rented by the square foot, and for this reason, the measurement of commercial space is very important.

A commercial building has an overall size, called the gross building area (GBA).

The GBA represents a building’s total floor area, as measured from the outer surface of exterior walls and windows, and includes elevator shafts, utility rooms and basement space.

The percentage of the building that cannot be rented is called the loss percentage.

Typically, the owner takes a portion of that loss and tacks it onto the usable space to make the net rentable area (NRA).

Usable square footage, (USF) is the actual space contained within a tenant’s or all of the tenant’s premises, tenants are able to occupy and use most of that space.

Rentable square footage (RSF) is the number of square feet on which the tenant’s rent is based.

Ultimately, the RSF is whatever number the landlord and the tenant agree on for purposes of their lease.

Definitions of Square Foot Calculations:

Gross Building Area = Total area of all floors, including basement

Usable Square Footage = Actual space occupied by a tenant; for an entire building. Gross Building Area less Common Area

Rentable Square Feet = Defined by lease, but often the USF + an allocated portion of the Common Area

Loss Ratio = Common Area  /  Gross Building Area

Formulas for Square Foot Calculations:

Price per Square Foot = Price  /  Gross Building Area or Net Rentable Area

Income per Square Foot = Gross Scheduled Income  /  Gross Building Area or Net Rentable Area

Expenses per Square Foot = Operating Expenses  /  Gross Building Area or Net Rentable Area

To calculate the Gross Scheduled Income:

Gross Scheduled Income (annual) = Total rent payable for that year under existing contracts for occupied space + Total potential rent at market rates for vacant space.

When negotiating the rent for your commercial lease, you want to translate the dollars per square foot into the actual dollar amounts to head off future measurement disputes.

Winston Rowe & Associates prepared this knowledge base article.

They are a commercial real estate advisory and due diligence firm that specializes in financing of commercial real estate transactions.

They can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com

Detail Items For Commercial Lease Agreements

You’ve purchased a rental property, and now you’re figuring out how to get started as a landlord. Failing to specify all of your requirements and expectations in the lease is one of the more common landlord mistakes.

Commercial real estate investors know the best way to safeguard their investment from potential tenant trouble is to craft a solid rental lease agreement that includes these key things:

1. The basic clauses. Every rental lease agreement must list the parties to the agreement, which would be you and the tenant, along with the property’s address.

2. Security deposit clause. Your lease should require the tenant to put up a security deposit that matches one month’s rent or more, depending on the value of furnishings and repair costs if something goes wrong.

3. Maintaining the premises. The lease should specify that tenants are required to maintain the premises, abide by noise control rules and not change the locks without your written approval.

4. Warning of concealed defect. In some jurisdictions, you have a legal duty to warn of a concealed defect known to you, or a defect that it is reasonable for you to know about.

5. Subleasing clause. At some point, most landlords have a tenant who wants to sublet the apartment to a friend or stranger. To avoid trouble, make sure your lease agreement includes a subletting clause that requires the tenant to obtain your written permission before turning the rental over to someone else.

6. Termination. The best practice is to know your jurisdiction’s rules on terminating a lease and include those details in your rental lease agreement so your tenant will not be surprised.

7. After the tenant leaves. Would you ever hold a tenant’s personal property for unpaid rent? In some states it’s against the law for a landlord to confiscate a tenant’s property and demand rent money in return.

Include these important clauses in your rental lease agreement and you will be well on your way toward building a successful real estate investment business.

With a core focus on flexibility, Winston Rowe & Associates really wants to be able to find a way to help everyone who comes to them find a funding solution that meets their needs.

 

Best Free Commercial Real Estate eBook – Winston Rowe & Associates

Announcing , The Free eBook Commercial Real Estate Finance published by Winston Rowe & Associates  discusses the fundamentals of the different types of commercial property, the various options that are included with properties and the capabilities that you will have as a commercial property investor.

It will enable you to make the right decisions when it comes to commercial properties. After you have read this book, you will be able to successfully choose a commercial property for your real estate business.

This book will help you to figure out everything that has to do with commercial properties. Also included with this book are different ideas on what you can do to make sure that you are getting the best financing possible. You will be able to truly enjoy the opportunities that come along with financing and with the different options that you have.

It’s loaded with all the check lists you’ll need to conduct your due diligence to avoid a bad investment. There are detailed descriptions of the various types of capital sources and how to prepare and submit your financing proposal.

You will need to make sure that you can secure financing but it is not a cut and dry experience for everyone. The tips that are included with this book will give you the best chance at getting financing.

To down load The Free eBook Commercial Real Estate Finance go to our website at http://www.winstonrowe.com

How To Get An SBA Loan – Winston Rowe & Associates Experts In CRE Financing

The Small Business Administration does not actually loan money. Instead, it serves as a type of partial-repayment cosigner, which is why collateral is typically needed to acquire a SBA loan.

SBA loans are used for different purposes. While most people associate a business loan with start-up capital,

SBA loans serve more purposes. For instance, funds can be used to refinance expensive debt, purchase equipment and/or inventory, expansion, or even to buy real estate.

Here are some more things you need to know about SBA loans:

There are 6 types of SBA loans:

1. SBA 7(a) Loans

SBA 7(a) loans are the most common type of SBA loan. These loans of up to $5,000,000 can be used for working capital, to refinance debt, or to buy a business, real estate, or equipment.

The SBA 7(a) program includes the SBA Express Loans and SBA Advantage Loans.

2. CDC / SBA 504 Loans

CDC / SBA 504 loans combine a loan from a nonprofit CDC with a loan from a bank to create a long term, low interest rate loan for up to $20,000,000 for the purchase of owner occupied commercial real estate and heavy equipment.

3. SBA CAP Lines of Credit

CAPLines are SBA lines of credit meant to help small businesses meet short-term and seasonal working capital needs. The SBA offers 5 types of these lines of credit.

They can be fixed or revolving, have a max term of 5 years, and otherwise adhere to SBA 7(a) rules.

4. SBA Export Loans

Export loans are designed to help small businesses fund new exporting operations and offer cash flow solutions to small business so they can be more flexible with the terms they offer their international customers.

5. SBA Microloan Program

Microloans are up to $50,000 with up to 6-year terms.They have higher interest rates (8% -13%) than most other SBA loans.

The SBA issues Microloans through nonprofit, community-based organizations. Microloans cannot be used to refinance debt or purchase real estate.

6. SBA Disaster Loans

Disaster loans are available to small businesses and organizations that are located in a declared disaster zone and suffered damage to property, businesses that incurred economic losses because of a disaster, and businesses that lose a key employee who is a military member and is called to active duty.

Winston Rowe & Associates was formed in 2011 with a core focus on flexibility. They really want to be able to find a way to help everyone who comes to them find a funding solution that meets their needs.

The best funding solutions occur when they combine data with consultation and common sense.

That’s why Winston Rowe & Associates actually wants to speak with clients, so we can truly understand your business and its distinct needs.

They have access to a full spectrum of capital sources to meet almost every commercial real estate financing solution.

You can check them out on line at http://www.winstonrowe.com or give them a call at 248-246-2243

Hard Money and Bridge Funding for Apartment and Multifamily Investors – No Upfront Fees Winston Rowe

Hard Money and Bridge Funding for Apartment and Multifamily Investors – No Upfront Fees Winston Rowe and Associates

Hard money funding solutions for multifamily and apartment acquisitions, rehab’s and refi’s in Chicago Market Area. Winston Rowe & Associates has unique access to different loan programs; they consistently provide competitive rates and terms.

Winston Rowe & Associates, a no upfront fee commercial real estate finance firm that provides funding solutions for bridge and hard money funding solutions for apartment buildings and multifamily buildings that can close in 1- 3 weeks.

They provide the most comprehensive apartment and multifamily financing programs available. Whether you’re looking for a conduit, traditional or hard money apartment and multifamily funding solution. They can meet both your individual and professional investment objectives.

They have some of the most creative capitalization plans in the market that are designed meet the unique set of financial circumstances of each apartment and multifamily building transaction.

Some Key Program Features Available:

No Upfront Fees

Loan Amounts Start at $500,000.

No Holdbacks or Defeasance

Interest Only Option

Option Arm Programs Available

Non-Recourse Loans Available

Low Fixed Rates ranging on 1–30 Year loans with 30 Year amortized terms

Conduit Fixed-Rate and Floating-Rate Loans

When speed and experience are important and crucial to your apartment and multifamily 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 visit them online at http://www.winstonrowe.com

REIT Real Estate Investment Trust Explained Winston Rowe & Associates

What is a REIT?

REITs, or Real Estate Investment Trusts, are companies that own or finance income-producing real estate in a range of property sectors.

These companies have to meet a number of requirements to qualify as REITs.

Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

A REIT is a company that owns, operates or finances income-producing real estate.

REITs historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation.

Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns.

Modeled after mutual funds REITs provide all investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, and help communities grow, thrive and revitalize.

Types of REIT’s

Equity REITs

A company that owns or operates income-producing real estate

Mortgage REITs (MREITs)

Provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments.

Public Non Listed REITs

PNLRs are registered with the SEC but do not trade on national stock exchanges.

Private REITs

Offers that are exempt from SEC registration and whose shares do not trade on national stock exchanges.

REITs must pay out at least 90 percent of their taxable income to shareholders and most pay out 100 percent.

REIT owned real estate, located in every state, is an important part of the U.S. economy and local communities.

This article was prepared by Winston Rowe & Associates a national due diligence firm for commercial real estate transactions.

The can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com

Commercial Real Estate Construction Bridge Loans No Upfront Fees

Winston Rowe & Associates, a national commercial bridge loan financing specaliest, provides businesses with short-term bridge loans for up to three years with interest only payments.

If you have any questions concerning private or bridge or hard money financing, you can contact Winston Rowe & Associates at 248-246-2243 or visit them on line at http://www.winstonrowe.com

They have commercial bridge loans for commercial real estate in need of fast capital which can be used for acquisitions, refinances, construction, or to even save a piece of valuable real estate from foreclosure. These financing products are simple to obtain, can be funded faster than any commercial mortgage, and are offered at surprisingly competitive rates.

Winston Rowe & Associates No Upfront Fee Bridge Loan Solutions Include:

Hard Money Loans:

Winston Rowe & Associates hard money loans for deals with “hair” and LTV’s ranging from 50%-65% based on as-is cash sale value. Examples include: hard money development loans, very quick closings, distressed debt or partnership buyouts, bankruptcy loans, borrower background issues, etc.

DIP Loans:

Stalled projects where funding has dried up, they have solutions for additional capital for everyone’s benefit. Specifically, Winston Rowe & Associates Project Rescue & DIP Loans will fund priming DIP loans and bankruptcy plans; finish construction or entitlement; continue interest payments; cover operating expenses including taxes, payroll, utilities, insurance, HOA dues and marketing; avoid premature discounted sales and write-offs; and provide time to effectuate a repositioning plan or to simply wait for recovery. These loans are perfect for workouts, restructures and bankruptcy plans; a priming senior lien is required.

Bridge Loans:

Winston Rowe & Associates will fund short-term capital requirements needed to bridge a gap, but only with reasonably assured exit strategies. Examples include: completed condominium inventory loans, tenant improvement loans, and pre-sold residential or commercial lots.

Bridge Loan Criteria:

No Upfront Fees
Property Types: Any Commercial Real Estate
Loan Amounts: $1,000,000 & Up
Terms: 1 Day to 3 Years
Amortization: Interest Only
Maximum LTV: 65%
Recourse: Recourse; Non-Recourse On a Select Basis
Geographic Location: Nationwide
Funding: 14 days from complete submission of the due diligence package

Apartment Building Investing Business Metrics

Investing in apartments can be overwhelming.

Developing a financing proposal for a potential capital source, you’ll need to focus on the following.

Business Performance Metrics:

Net Operating Income (NOI)

Net Operating Income is the one metric that most investors use to analyze a property.  Unfortunately, it’s also the one metric that is the most manipulated by real estate agents to get someone to buy a property.

This is why it’s important for you to do your own math.  Here’s the formula for NOI:

Potential Rental Income

-Vacancy

Effective Rental Income

+Other Income
_____________

Gross Operating Income

-Operating Expenses
_____________
= Net Operating Income

Unlike other cash-flow metrics, NOI excludes financing and tax costs.  Therefore, investors are able to determine the cash-flow of a specific property.

Invest for the sake of cash flow, rather than making projections about potential appreciation (market or forced). As long as you follow that simple principle, you’ll be protected from a lot of risk.

Occupancy

The occupancy rate is the number of units filled divided by the total number of units.  For instance, if there are 95 units occupied out of a 100-unit apartment complex the occupancy rate is 95%.

Vacancy

Some investors prefer to use the vacancy rate instead of the occupancy rate. The vacancy factor is just the reciprocal of the vacancy. In the example above if there were 5 empty units out of a 100-unit apartment complex the vacancy factor would be 5%.

Absorption

This is an extremely important factor that you need to learn how to calculate – especially if you are investing in a growing market.  First, determine the total number of apartment units available in the market.

For this example let’s call it 3,000 with a 95% occupancy rate (2850 units rented).  Use a time-frame of 12 months.

Then find out how many units were built or demolished during this time frame.  For this example, let’s say a new apartment complex was built with 300 units so the market now is at 3,300 units with a 90% occupancy (2970 units rented).

In this example, even though the size of the market grew 10% to 3,300 units the absorption was extremely high because the total number of units rented actually increased.  Occupancy rate slipped slightly however, this is the sign of a healthy market.

Capital Expenditures (CapEx)

This is an easy metric to mess-up.  Basically, just think of capital expenditures as an expense.  However, capital expenditures improve the life of the asset.

A new roof would be an example of a capital expenditure.

Mowing the lawn would be an example of an expense.

A new roof improves the life of the asset you want to spread the cost of this new roof over the life of the asset.  For a roof, you would need to estimate the life of the roof.  Accountants call this “capitalizing the expense”

Reserves for Apartments

Reserves are a very big deal when investing in apartments.  When you forecast your return (especially your initial investment) you need to account for reserves.  Ok, what are actual reserves?  Well, there are multiple kinds of reserves such as:

Interest Reserves – That your lender might make you make. These payment reserves gives the lender a margin of safety knowing that there is always a certain amount of payments held in a reserve account, in-case you have some negative cash-flow for several months.

Cash Reserves – Investors, lenders, business partners or whoever else might be a stakeholder might want to require some cash reserves or liquidity reserves.  This simply ensures you will have the money to pay for any unforeseen expenses.

Maintenance Reserves – If you are buying an older property, maintenance reserves are absolutely essential. Instead of relying on cash-flow you will have properly reserved for any needed repairs and maintenance work.

With older properties, there is never a downside in having an excess maintenance reserve. You might lose out on some deals, but you will have an extra level of financial security.

Internal Rate of Return (IRR)

Of-course you want to measure your actual return for an investment. My favorite method is the IRR method. This extremely easy to do in excel:

Input initial investment

Forecast annual cash-flows

Forecast exit investment

Input total number of years

Loan-to-Value (LTV)

This metric is pretty simple; you simply take your loan balance divided by the value of the property. The vast majority of lenders have a loan to value maximum of 80%. One thing to note is that if there is a second mortgage that mortgage is sometimes lenders add that mortgage to their mortgage to get the total loan to value. The point of this ratio is to show that the investors have equity in the property.

Debt Service Coverage (DSC)

The formula for DSC is Net Operating Income divided by the total debt service.

Typically, lenders want to see at least a 1.10 DSC.  This means that for every $1.00 of debt service, the property is producing $1.10 of cash-flow to service that debt.

Capitalization Rates (Cap Rate)

When you hear of investors talking about a property for sale they normally talk about the cap rate the property is selling for.  The formula for cap rate is: Net Operating Income / Current Market Value

Even though this metric is simple, most real estate brokers manipulate this number (usually by using forecasted income numbers rather than the actual numbers).  Always take a stated cap-rate with a grain of salt and do your own math.

Apartment building financing is a Winston Rowe & Associates specialty.

A principle is always available to speak with prospective clients at 248-246-2243 or visit them on line at http://www.winstonrowe.com

 

Hard Money Commercial Loans No Upfront Fees

Asset-based, hard money loans are made by private money lenders which are non-institutional (non-bank) capital sources, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction.

They use a very strict set of rules regarding the collateral status of the physical assets being used to obtain a loan.

What is Hard Money Used For:

This type of financing is used for high risk business transactions that traditional banks or institutions will not lend on.

For example; Chapter 11 Bankruptcy, commercial property that is vacant or needs rehabilitation and other types of high risk business ventures, turnaround situations, short-term bridge financing and for investors who want to purchase properties to fix and flip.

Types of Collateral Used:

Asset based lending comprises business or a real estate loan secured by the liquidation value of their assets, generally at quick fire sale values.

A recipient receives this form of financing by offering real estate, inventory, accounts receivable and/or other balance-sheet assets as collateral.

Common assets that are provided as collateral for a hard money loan include physical assets like real estate, such as land and physical properties, company inventory and manufacturing equipment, or physical commodities.

If the borrower fails to repay the loan or defaults, the hard money lender can seize the collateral and sell the assets in order to recoup its loan amount.

In many cases the collateral to secure the loan is two times the value of the loan; hence the hard money lender will make a substantial profit even if the loan defaults.

Due Diligence and Underwriting:

Prior to authorizing a loan, lenders require a relatively lengthy due diligence process, which includes the inspection of the real estate, balance sheet, ledgers and assets to calculate the value of a company’s allowable borrowing capacity.

Costs associated with this analysis vary, but common charges include site visits, collateral evaluations and interest costs.

Hard Money Lending Source:

The objective at Winston Rowe & Associates is to add value to a client’s commercial real estate acquisition or refinance by offering a wide range of hard money, asset based financing solutions for; apartment buildings, hotels, shopping centers, office buildings, industrial property, raw land, medical offices, manufactured home developments and construction projects.

They can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Apartment Building Loan Types Winston Rowe & Associates No Upfront Fees

When it comes to investing in multifamily housing properties, often times the difference between a good investment and a great investment is financing.

Winston Rowe & Associates has a comprehensive mix of highly customized multifamily and apartment building no upfront fee loan programs to maximize investors returns.

Freddie Mac Multifamily Small Balance Loan Program:

The Freddie Mac Small Balance Apartment Loan program fills a gap in the small multifamily loan space ($1MM-$7.5MM) for borrowers seeking competitively priced, non-recourse debt without yield maintenance, or a balloon payment at the end of the fixed term.

Bank Balance Sheet Apartment Loans:

By working with the most competitive and aggressive banks in the country, they can custom tailor financing based on location, property characteristics, and investor profile.

Fannie Mae Multifamily Loans:

The Fannie Mae DUS Multifamily Loan platform is one of the single largest sources of capital to the multifamily housing market. Hedge interest rate risk with fixed rate terms up to 30 years, maximize cash flow with low rates and interest only payment options, and maximize leverage with up to 80% LTV.

HUD FHA Multifamily and Apartment Building Loans:

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms, financing also available for healthcare properties through FHA Section 232.

Private Capital, CMBS, Life Company and REIT:

The capital and secondary markets play an important role in providing both debt and equity to the multifamily housing community.

With a core focus on flexibility, Winston Rowe & Associates really wants to be able to find a way to help everyone who comes to them find a funding solution that meets their needs.

They can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Apartment Financing Cash Out

Apartment Building Cash Out Refinance Loans

Bridge, hard money or CMBS funding available for Multifamily, Apartment refinance, rehab or acquisition

When it comes to refinancing, rehabbing or acquiring multifamily and apartment properties, often times the difference between a good investment and a great investment is the cost of financing.

Winston Rowe & Associates understands this and that’s why they have developed a comprehensive mix of highly customized multifamily and apartment refinancing and acquisition programs to help maximize your return based on the individual needs and requirements of you and your apartment building investment.

Winston Rowe & Associates apartment and multifamily funding solutions are offered at competitive rates, so owners and investors can spend less on interest and fees and turn an even bigger profit from their investment in an apartment building or complex.

Apartment & Multifamily Financing Solutions:

No upfront or advance fees

Loans available nationwide

Loan amounts start at $250,000 – no upper limit.

Up to 30-year amortization

For purchases, refinances and cash-out

Quick closings with complete file

When speed and experience are important and crucial to your commercial real estate 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 check them out online at http://www.winstonrowe.com

 

How To Buy An Apartment Building

Apartment Building investing is the preferred investment strategy for those investors who want an additional source of monthly income along with slow but steady appreciation in the value of their portfolio.

Buying an apartment building is a long, sometimes complicated, process. It’s important for you to gather as much information as you can before you make the decision to buy.

Applying for a mortgage to finance an apartment building is not at all similar to applying for a home mortgage. Apartment complexes with four or more units are commercial properties, and loans for them have different underwriting rules.

Here’s how to make a great investment in an apartment building.

Verify the accuracy of your assumptions; it’s critical that you have a realistic idea of what the value is, and what the income and expenses will be, accuracy of the information is everything

Don’t trust any numbers you hear from the seller, the real estate agent or anyone else representing the seller, use a third party firm that specializes in conducting a professional due diligence investigation.

Winston Rowe & Associates provides this service with no upfront fees to their clients.

They will make sure you’re working with reliable data from the seller and their agents.

A professional due diligence investigation will get to the hard evidence from using business analysis metrics to find out what those numbers have been in the past and what they may be in the future.

The Metrics of Apartment Investing:

Gross Rent Multiplier (GRM):

Gross rent multiplier is a rough measure of the value of an investment property that is obtained by dividing the property’s sale price by its gross annual rental income. GRM is used in valuing commercial real estate.

Utilizing the GRM you can accurately determine the value of the commercial real estate prior to ordering an appraisal. Additionally, the GRM can also verify or discredit an existing appraisal.

Net Operating Income (NOI):

Net operating income (NOI) is used in the real estate market to determine the revenue that a property generates less operating expenses. NOI also determines a property’s capitalization rate, or rate of return.

Occupancy:

The occupancy rate is the number of units filled divided by the total number of units.  For instance, if there are 95 units occupied out of a 100-unit apartment complex the occupancy rate is 95%.

Vacancy:

Some investors prefer to use the vacancy rate instead of the occupancy rate.  The vacancy factor is just the reciprocal of the vacancy.  For instance, in the example above if there were 5 empty units out of a 100-unit apartment complex the vacancy factor would be 5%.

Absorption:

The absorption rate is the rate at which available apartment units are rented in a specific real estate market during a given time period. It is calculated by dividing the total number of available apartment units by the average number of sales per month. The figure shows how many months it will take to exhaust the supply of apartment units on the market.

Capital Expenditure (CapEx):

Capital expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as everything from repairing a roof to building, to purchasing a piece of equipment like water heaters, air conditioners, or new plumbing.

Cash Reserves:

This is very important to every potential lender; it’s the amount of cash that you set aside when running a business. A business that is not properly capitalized can fail in a very short period of time.

Internal Rate of Return (IRR):

Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability of potential investments. Internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Loan-to-Value (LTV):

Loan-to-value ratio (LTV ratio) is a lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage. Typically, assessments with high LTV ratios are generally seen as higher risk and, therefore, if the mortgage is approved, the loan generally costs the borrower more to borrow.

Debt Service Coverage (DSC):

The formula for DSC is Net Operating Income divided by the total debt service.

Typically, lenders want to see at least a 1.10 DSC.  This means that for every $1.00 of debt service, the property is producing $1.10 of cash-flow to service that debt.

Capitalization Rates (Cap Rate):

The capitalization rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. The capitalization rate is used to estimate the investor’s potential return on his or her investment.

Even though this metric is simple, most real estate brokers manipulate this number (usually by using forecasted income numbers rather than the actual numbers).  Always take a stated cap-rate with a grain of salt and do your own math.

Due Diligence Review & Investigation:

Winston Rowe & Associates commercial real estate due diligence services range from initial deal review for accurate and reliable analysis to help support your important real estate decisions, then presentation and placement to their extensive network of capital sources.

Without the usual upfront or advance fees that are typical in the industry.

Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a co-operative looking for an underlying mortgage, Winston Rowe & Associates can help you find the optimal financing solution to meet your individual needs.

They can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com

Apartment Loans No Upfront Fee

Apartment Building Investing Loans

Investing in apartments can be overwhelming.

Developing a financing proposal for a potential capital source, you’ll need to focus on the following.

Business Performance Metrics:

Net Operating Income (NOI)

Net Operating Income is the one metric that most investors use to analyze a property.  Unfortunately, it’s also the one metric that is the most manipulated by real estate agents to get someone to buy a property.

This is why it’s important for you to do your own math.  Here’s the formula for NOI:

Potential Rental Income

-Vacancy

Effective Rental Income

+Other Income
_____________

Gross Operating Income

-Operating Expenses
_____________
= Net Operating Income

Unlike other cash-flow metrics, NOI excludes financing and tax costs.  Therefore, investors are able to determine the cash-flow of a specific property.

Invest for the sake of cash flow, rather than making projections about potential appreciation (market or forced). As long as you follow that simple principle, you’ll be protected from a lot of risk.

Occupancy

The occupancy rate is the number of units filled divided by the total number of units.  For instance, if there are 95 units occupied out of a 100-unit apartment complex the occupancy rate is 95%.

Vacancy

Some investors prefer to use the vacancy rate instead of the occupancy rate. The vacancy factor is just the reciprocal of the vacancy. In the example above if there were 5 empty units out of a 100-unit apartment complex the vacancy factor would be 5%.

Absorption

This is an extremely important factor that you need to learn how to calculate – especially if you are investing in a growing market.  First, determine the total number of apartment units available in the market.

For this example let’s call it 3,000 with a 95% occupancy rate (2850 units rented).  Use a time-frame of 12 months.

Then find out how many units were built or demolished during this time frame.  For this example, let’s say a new apartment complex was built with 300 units so the market now is at 3,300 units with a 90% occupancy (2970 units rented).

In this example, even though the size of the market grew 10% to 3,300 units the absorption was extremely high because the total number of units rented actually increased.  Occupancy rate slipped slightly however, this is the sign of a healthy market.

Capital Expenditures (CapEx)

This is an easy metric to mess-up.  Basically, just think of capital expenditures as an expense.  However, capital expenditures improve the life of the asset.

A new roof would be an example of a capital expenditure.

Mowing the lawn would be an example of an expense.

A new roof improves the life of the asset you want to spread the cost of this new roof over the life of the asset.  For a roof, you would need to estimate the life of the roof.  Accountants call this “capitalizing the expense”

Reserves for Apartments

Reserves are a very big deal when investing in apartments.  When you forecast your return (especially your initial investment) you need to account for reserves.  Ok, what are actual reserves?  Well, there are multiple kinds of reserves such as:

Interest Reserves – That your lender might make you make. These payment reserves gives the lender a margin of safety knowing that there is always a certain amount of payments held in a reserve account, in-case you have some negative cash-flow for several months.

Cash Reserves – Investors, lenders, business partners or whoever else might be a stakeholder might want to require some cash reserves or liquidity reserves.  This simply ensures you will have the money to pay for any unforeseen expenses.

Maintenance Reserves – If you are buying an older property, maintenance reserves are absolutely essential. Instead of relying on cash-flow you will have properly reserved for any needed repairs and maintenance work.

With older properties, there is never a downside in having an excess maintenance reserve. You might lose out on some deals, but you will have an extra level of financial security.

Internal Rate of Return (IRR)

Of-course you want to measure your actual return for an investment. My favorite method is the IRR method. This extremely easy to do in excel:

Input initial investment

Forecast annual cash-flows

Forecast exit investment

Input total number of years

Loan-to-Value (LTV)

This metric is pretty simple; you simply take your loan balance divided by the value of the property. The vast majority of lenders have a loan to value maximum of 80%. One thing to note is that if there is a second mortgage that mortgage is sometimes lenders add that mortgage to their mortgage to get the total loan to value. The point of this ratio is to show that the investors have equity in the property.

Debt Service Coverage (DSC)

The formula for DSC is Net Operating Income divided by the total debt service.

Typically, lenders want to see at least a 1.10 DSC.  This means that for every $1.00 of debt service, the property is producing $1.10 of cash-flow to service that debt.

Capitalization Rates (Cap Rate)

When you hear of investors talking about a property for sale they normally talk about the cap rate the property is selling for.  The formula for cap rate is: Net Operating Income / Current Market Value

Even though this metric is simple, most real estate brokers manipulate this number (usually by using forecasted income numbers rather than the actual numbers).  Always take a stated cap-rate with a grain of salt and do your own math.

Apartment building financing is a Winston Rowe & Associates specialty.

A principle is always available to speak with prospective clients at 248-246-2243 or visit them on line at http://www.winstonrowe.com

How to Become a Success in Real Estate

Create a Strong Real Estate Team:

Though it is possible to have some success in real estate as a one-person business, you’ll eventually need to build a team around yourself in order to scale up.

Your team of people can include direct employees to find and negotiate property sales for you, as well as well-liked contractors to handle repairs on the properties you acquire.

By surrounding yourself with talented and driven people, you will be able to focus in on only the most important aspects of your real estate investment business.

Balance Flipping and Rental Properties:

In real estate investment, there are two basic ways to make money.

The first is to realize a large sum by buying a property, improving it in some way and then reselling it for a higher price.

The second method is to create a flow of passive income by acquiring and then renting out properties.

Though both of these are great ways to make money in real estate, truly successful investors typically include both in their businesses. By flipping and renting at the same time, you will be able to create a more stable financial situation for yourself and your business.

Apartment Financing No Upfront Fees

Apartment Refinance Loans

Apartment Financing

Loans For Apartment Buildings

When it comes to investing in multifamily housing properties, often times the difference between a good investment and a great investment is financing.

Winston Rowe & Associates has a comprehensive mix of highly customized multifamily and apartment building no upfront fee loan programs to maximize investors returns.

Freddie Mac Multifamily Small Balance Loan Program:

The Freddie Mac Small Balance Apartment Loan program fills a gap in the small multifamily loan space ($1MM-$7.5MM) for borrowers seeking competitively priced, non-recourse debt without yield maintenance, or a balloon payment at the end of the fixed term.

Bank Balance Sheet Apartment Loans:

By working with the most competitive and aggressive banks in the country, they can custom tailor financing based on location, property characteristics, and investor profile.

Fannie Mae Multifamily Loans:

The Fannie Mae DUS Multifamily Loan platform is one of the single largest sources of capital to the multifamily housing market. Hedge interest rate risk with fixed rate terms up to 30 years, maximize cash flow with low rates and interest only payment options, and maximize leverage with up to 80% LTV.

HUD FHA Multifamily and Apartment Building Loans:

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms, financing also available for healthcare properties through FHA Section 232.

Private Capital, CMBS, Life Company and REIT:

The capital and secondary markets play an important role in providing both debt and equity to the multifamily housing community.

With a core focus on flexibility, Winston Rowe & Associates really wants to be able to find a way to help everyone who comes to them find a funding solution that meets their needs.

They can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

 

Apartment Financing No Application Fees

Apartment Financing

For those seeking multi-family properties, HUD Federal Housing Administration (FHA) loans provide an easier way to finance this purchase with fewer qualifications and increased flexibility.

HUD approved lenders are able to assume a greater level of risk and provide borrowers with the most aggressive rates and terms in the market.

HUD 223(f) apartment loans are available for the acquisition or refinancing of 5+ unit multifamily properties and are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms.

The program is available for market rate rental housing or for properties accepting rental assistance, either tenant based or project based a 30 day minimum lease term required.

There are no income or rent restrictions under Section 223(f) unless otherwise required by a project based HAP contract or other regulatory agreement. HUD FHA 223(f) insured mortgages are non-recourse with no market – economic or population – restrictions.

The property must meet a minimum three-year stabilization requirement, with complete kitchens and baths and have been completed or substantially rehabilitated prior to the date of the mortgage application.

The loan may include repair costs not to exceed 15% of its value after repairs or no more than $6,500 per unit, except in high cost areas. Repairs may not include replacing more than one major building system such as plumbing or electric.

Cash out Refinances are allowed when 80% of value exceeds existing debt plus transaction costs, but only 50% of the net cash will be released at closing.

HUD FHA 223 (f) Multifamily Financing Guidelines:

Loan sizes above $1 million – no maximum

83.3% LTV for market rate apartments

87% LTV for project based rental assistance

Up to 35 year fixed rate terms

1.17 minimum DSCR

HUD insured mortgages are non-recourse

5+ residential unit properties, including, detached, semidetached, row, walkup, or elevator-type rental or cooperative housing.

All 50 states including the US Territories of Puerto Rico, U.S. Virgin Islands, and Guam

With a core focus on flexibility, Winston Rowe & Associates really wants to be able to find a way to help everyone who comes to them find a funding solution that meets their needs.

The best funding solutions occur when they combine data with consultation and common sense.

That’s why Winston Rowe & Associates actually wants to speak with clients, so they can truly understand your business and its distinct needs.

You can contact them at 248-246-2243 or visit them online at http://www.winstonrowe.com(http://www.winstonrowe.com/)

Apartment Loans

Apartment Lenders

The Fannie Mae DUS Multifamily Loan program is one of the single largest sources of capital to the multifamily housing market.

Freddie Mac started as a nickname for the Federal Home Loan Mortgage Corporation (FHLMC), but in 1997 they gave up their acronym and became simply “Freddie Mac.” The government-sponsored enterprise (GSE) was chartered in the 1970s to help lenders access funds for multifamily loans, encouraging more people to develop rental housing to meet the needs of lower- and middle-income Americans.

It has since become a premier provider of loans for companies or individuals who want to get the best loan terms, close quickly, and find very attractive interest rates.

The Fannie Mae Multifamily lending platform provides financing for the acquisition or refinancing of multifamily properties, including, 5+ unit apartment buildings and condominiums, Seniors Housing, Student Housing, Cooperatives, Affordable Housing and Manufactured Housing.

The DUS (Delegated Underwriting and Servicing) program is a unique private capital model providing effective, reliable financing solutions.

The DUS program relies on shared risk with private lenders providing certainty and speed of execution and competitive pricing. In short, Fannie Mae delegates its lending partners to underwrite, approve and service loans while setting the program underwriting guidelines and agreeing to purchase the mortgage at a future date. Under the DUS lending platform, Fannie Mae is neither your lender nor servicer.

Originating Freddie & Fannie Multifamily Loans

Not all lending institutions are able to work with Freddie Mac and Fannie Mae, so if you are interested in the programs that they offer, it’s important that you find a lender who is a correspondent for these agencies.

It takes a lot of work for a financial institution to build the necessary trust with these agencies to be able to originate loans using their programs.

With a core focus on flexibility, Winston Rowe & Associates really wants to be able to find a way to help everyone who comes to them find a funding solution that meets their needs.

They can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Hard Money Commercial Real Estate Property Funding

Winston Rowe and Associates is a unique type of commercial real estate finance firm, they do not charge upfront fees like their competitors to perform a due diligence review for your transaction.

Advantages of No Upfront Fee Private Capital Funding Solutions from Winston Rowe and Associates:

Winston Rowe and Associates has 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.

Fast, reliable capital for time sensitive and opportunistic transactions

Capital to owners cashing out of one property to purchase another property

All commercial property types considered,  however no raw land

Capital for transitional or non-stabilized assets; can accommodate holdbacks for real estate that requires tenant improvements and leasing commissions or construction completion

Capital to owners repurchasing their existing debt

Winston Rowe and Associates always welcomes the opportunity to speak with clients directly. The can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

 

Multifamily and Apartment Construction Funding

Winston Rowe & Associates is national no upfront fee commercial real estate finance and advisory firm that provides solutions for the construction of apartment, multifamily, office, retail, hospitality, medical and industrial properties.

Prospective clients can to contact them with the parameters of their construction funding request at 248-246-2243, or visit them on line at http://www.winstonrowe.com

Full-Service Apartment and Multifamily Construction Funding 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

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.

 

Multifamily and Apartment Refinance, Rehab or Acquisition Lending

Bridge, hard money or CMBS funding available for Multifamily, Apartment refinance, rehab or acquisition

When it comes to refinancing, rehabbing or acquiring multifamily and apartment properties, often times the difference between a good investment and a great investment is the cost of financing.

Winston Rowe & Associates understands this and that’s why they have developed a comprehensive mix of highly customized multifamily and apartment refinancing and acquisition programs to help maximize your return based on the individual needs and requirements of you and your apartment building investment.

Winston Rowe & Associates apartment and multifamily funding solutions are offered at competitive rates, so owners and investors can spend less on interest and fees and turn an even bigger profit from their investment in an apartment building or complex.

Apartment & Multifamily Financing Solutions:

No upfront or advance fees

Loans available nationwide

Loan amounts start at $250,000 – no upper limit.

Up to 30-year amortization

For purchases, refinances and cash-out

Quick closings with complete file

Non Recourse Commercial Funding

Winston Rowe & Associates targets difficult-to-finance transactions – in which funding cannot be obtained from conventional lenders due to FIDC constraints on the bank, problems with the real estate, problems with the principals of borrower, problems with the transaction itself, or any combination.

Winston Rowe & Associates is a nationwide commercial real estate advisory and finance firm that offers a diverse mix of commercial real estate funding solutions to meet the individual borrowing needs and investment objectives of its borrowers, for both investment and owner-occupied commercial properties.

They can carefully structure the right financing solution no matter how small or large your transaction requires. Depending on the deal, Winston Rowe & Associates can offer recourse and non-recourse commercial real estate financing options.

Their knowledge and depth of expertise maximizes efficiency and becomes their client’s advantage.

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.

Winston Rowe & Associates considers the ensuing property types for capital deployment.

Apartment Building & Multi-Family

Office Building

Retail Centers

Industrial Property

Shopping Centers

Mixed Use

Assisted Living Facilities

Medical Centers

Hotels & Resorts

Winston Rowe & Associates always welcomes the opportunity to speak with clients directly. The can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

 

Investment Guidelines For Rental Properties

Whether you’re looking for a conduit, traditional or hard money funding solutions. Winston Rowe and Associates can meet both your individual and professional investment objectives. They have some of the most creative capitalization plans in the market that are designed meet the unique set of financial circumstances of each  transaction.

Choose the right property and you’ll reap the rewards; the wrong one will end up costing you dearly. You can minimize the potential for losses if you remember these four things to look for when evaluating a commercial property.

Property Location. The most important aspect of real estate investing is the location of the property. Properties in prime locations provide investors options such as resale, or rental. Those in poorly performing areas are limited and resale or rental may be difficult. The only way to really know what the area is like is to drive through during the day, at night and on weekends. Take note of activity that may discourage future buyers or renters.

Property Condition.  The condition of the roof, foundation, windows and mechanical components are big ticket items that will greatly affect your budget.  Make sure you have hard cost numbers from your contractor before you take the deal. Don’t be overly concerned by cosmetic issues that are easily fixed. Fresh paint, updated carpet, and flooring are relatively inexpensive.

Asking Price. The determining factor will be what the potential future value of the property is. The listing price is an important part of the equation. You don’t want to invest more than the property is worth, especially if you need to do a large amount of rehab. Look at other comparable properties, same number of bedrooms, square footage, etc., and determine the amount you’re willing to invest. Don’t be surprised, sometimes your offer will be more than the listing price.

After Rehab Value.  When it comes to investing, look at the location, condition, sales price and after rehab value. When all of these things are in line, you’ll be on your way to a profitable deal. The combined total of the asking price, plus rehab costs will bring you to your total expenses. Determine the percentage of profit, or dollar amount, you want to make and evaluate whether your investment will fulfill your needs. If not, you will be wise to move on to the next deal. Evaluating the after rehab value of a property will help you determine whether the deal is one you want to take, or if it’s time to move on. However, this isn’t necessarily the value of the home. Once completed, it’s possible your investment will be worth far more.

When speed and experience are important and crucial to your SFR and multifamily investing success, a principal at Winston Rowe & Associates is always available to speak with prospective clients.

How To Buy And Finance Apartment Buildings

Apartment Building investing is the preferred investment strategy for those investors who want an additional source of monthly income along with slow but steady appreciation in the value of their portfolio.

Buying an apartment building is a long, sometimes complicated, process. It’s important for you to gather as much information as you can before you make the decision to buy.

Applying for a mortgage to finance an apartment building is not at all similar to applying for a home mortgage. Apartment complexes with four or more units are commercial properties, and loans for them have different underwriting rules.

Here’s how to make a great investment in an apartment building.

Verify the accuracy of your assumptions; it’s critical that you have a realistic idea of what the value is, and what the income and expenses will be, accuracy of the information is everything

Don’t trust any numbers you hear from the seller, the real estate agent or anyone else representing the seller, use a third party firm that specializes in conducting a professional due diligence investigation.

Winston Rowe & Associates provides this service with no upfront fees to their clients.

They will make sure you’re working with reliable data from the seller and their agents.

A professional due diligence investigation will get to the hard evidence from using business analysis metrics to find out what those numbers have been in the past and what they may be in the future.

The Metrics of Apartment Investing:

Gross Rent Multiplier (GRM):

Gross rent multiplier is a rough measure of the value of an investment property that is obtained by dividing the property’s sale price by its gross annual rental income. GRM is used in valuing commercial real estate.

Utilizing the GRM you can accurately determine the value of the commercial real estate prior to ordering an appraisal. Additionally, the GRM can also verify or discredit an existing appraisal.

Net Operating Income (NOI):

Net operating income (NOI) is used in the real estate market to determine the revenue that a property generates less operating expenses. NOI also determines a property’s capitalization rate, or rate of return.

Occupancy:

The occupancy rate is the number of units filled divided by the total number of units.  For instance, if there are 95 units occupied out of a 100-unit apartment complex the occupancy rate is 95%.

Vacancy:

Some investors prefer to use the vacancy rate instead of the occupancy rate.  The vacancy factor is just the reciprocal of the vacancy.  For instance, in the example above if there were 5 empty units out of a 100-unit apartment complex the vacancy factor would be 5%.

Absorption:

The absorption rate is the rate at which available apartment units are rented in a specific real estate market during a given time period. It is calculated by dividing the total number of available apartment units by the average number of sales per month. The figure shows how many months it will take to exhaust the supply of apartment units on the market.

Capital Expenditure (CapEx):

Capital expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as everything from repairing a roof to building, to purchasing a piece of equipment like water heaters, air conditioners, or new plumbing.

Cash Reserves:

This is very important to every potential lender; it’s the amount of cash that you set aside when running a business. A business that is not properly capitalized can fail in a very short period of time.

Internal Rate of Return (IRR):

Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability of potential investments. Internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Loan-to-Value (LTV):

Loan-to-value ratio (LTV ratio) is a lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage. Typically, assessments with high LTV ratios are generally seen as higher risk and, therefore, if the mortgage is approved, the loan generally costs the borrower more to borrow.

Debt Service Coverage (DSC):

The formula for DSC is Net Operating Income divided by the total debt service.

Typically, lenders want to see at least a 1.10 DSC.  This means that for every $1.00 of debt service, the property is producing $1.10 of cash-flow to service that debt.

Capitalization Rates (Cap Rate):

The capitalization rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. The capitalization rate is used to estimate the investor’s potential return on his or her investment.

Even though this metric is simple, most real estate brokers manipulate this number (usually by using forecasted income numbers rather than the actual numbers).  Always take a stated cap-rate with a grain of salt and do your own math.

Due Diligence Review & Investigation:

Winston Rowe & Associates commercial real estate due diligence services range from initial deal review for accurate and reliable analysis to help support your important real estate decisions, then presentation and placement to their extensive network of capital sources.

Without the usual upfront or advance fees that are typical in the industry.

Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a co-operative looking for an underlying mortgage, Winston Rowe & Associates can help you find the optimal financing solution to meet your individual needs.

 

How to Become a Success in Real Estate

Though it is possible to have some success in real estate as a one-person business, you’ll eventually need to build a team around yourself in order to scale up.

Your team of people can include direct employees to find and negotiate property sales for you, as well as well-liked contractors to handle repairs on the properties you acquire.

By surrounding yourself with talented and driven people, you will be able to focus in on only the most important aspects of your real estate investment business.

Balance Flipping and Rental Properties:

In real estate investment, there are two basic ways to make money.

The first is to realize a large sum by buying a property, improving it in some way and then reselling it for a higher price.

The second method is to create a flow of passive income by acquiring and then renting out properties.

Though both of these are great ways to make money in real estate, truly successful investors typically include both in their businesses. By flipping and renting at the same time, you will be able to create a more stable financial situation for yourself and your business.

Free Commercial Real Estate eBook Winston Rowe & Associates

The Free eBook Commercial Real Estate Finance published by Winston Rowe & Associates  discusses the fundamentals of the different types of commercial property, the various options that are included with properties and the capabilities that you will have as a commercial property investor.

It will enable you to make the right decisions when it comes to commercial properties. After you have read this book, you will be able to successfully choose a commercial property for your real estate business.

This book will help you to figure out everything that has to do with commercial properties. Also included with this book are different ideas on what you can do to make sure that you are getting the best financing possible. You will be able to truly enjoy the opportunities that come along with financing and with the different options that you have.

It’s loaded with all the check lists you’ll need to conduct your due diligence to avoid a bad investment. There are detailed descriptions of the various types of capital sources and how to prepare and submit your financing proposal.

You will need to make sure that you can secure financing but it is not a cut and dry experience for everyone. The tips that are included with this book will give you the best chance at getting financing.

To down load The Free eBook Commercial Real Estate Finance go to our website at http://www.winstonrowe.com

Strategies Investing In Real Estate

Whether you aim to do a quick flip or you’d prefer to generate passive income over time, here are the details and resources needed to execute on each strategy.

Although buying and holding is the most common and traditional strategy used for real estate investing, there is actually a variety of different strategies used.

Some of these are simple and can be executed in just days, while others can be used on an ongoing basis to create long-term value.

How does each strategy work?

1. The Fix and Flip the first impression of a house is incredibly important. The flip involves buying a house that can be easily improved, and then making minimal cosmetic improvements and repairs to sell for a better price.

For the right property, taking the time to fix small issues with flooring, walls, landscaping, and paint can pay off almost immediately.

2. Buy and Hold this is one of the oldest strategies in the book, and it’s designed for long-term passive income.

By purchasing a property and leasing it to tenants, it creates a stream of monthly cash flows, and even offers potential tax benefits for the owner.

3. Wholesale this has similarities to flipping, but involves finding a buyer for a seller and taking a percentage off the sale. If done right, this can be done quickly and with minimal risk.

4. Buy, Renovate, Rent, Refinance, and Repeat likely the most complex strategy in real estate investing for beginners to follow, this can ultimately be used to provide benefits in both the short and long term.

It involves four steps: buying a property, renovating it, renting the property out to tenants, and then refinancing the mortgage later on. Then the process repeats itself.

This article was prepared by Winston Rowe & Associates.

They are publishers of Free eBooks and provide financing for a wide variety of commercial real estate

You can contact them at 248-246-2243 or visit them online at http://www.winstonrowe.com

Commercial Real Estate Investment Trust

REITs, or Real Estate Investment Trusts, are companies that own or finance income-producing real estate in a range of property sectors.

These companies have to meet a number of requirements to qualify as REITs.

Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

A REIT is a company that owns, operates or finances income-producing real estate.

REITs historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation.

Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns.

Modeled after mutual funds REITs provide all investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, and help communities grow, thrive and revitalize.

Types of REIT’s

Equity REITs

A company that owns or operates income-producing real estate

Mortgage REITs (MREITs)

Provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments.

Public Non Listed REITs

PNLRs are registered with the SEC but do not trade on national stock exchanges.

Private REITs

Offers that are exempt from SEC registration and whose shares do not trade on national stock exchanges.

REITs must pay out at least 90 percent of their taxable income to shareholders and most pay out 100 percent.

REIT owned real estate, located in every state, is an important part of the U.S. economy and local communities.

This article was prepared by Winston Rowe & Associates a national due diligence firm for commercial real estate transactions.

The can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com

Real Estate Investing

Whether you are buying land to build new construction or purchasing a pre-existing property, you may run into dual agents — real estate agents who represent both the buyer and seller. There are pros and cons of relying on the seller’s agent versus finding a buyer’s agent; read on to learn the consideration of each approach.

Why Use the Seller’s Agent?

There are several benefits to working with a dual agent. Since there is only one agent involved in the deal, communication becomes much easier. Not only is the chain of communication shorter (with one less person), but miscommunications can be avoided when the agent speaks with both sides personally.

Scheduling becomes easier, too, when the buyer and seller coordinate with a single agent rather than two agents. The deal may proceed faster when you use a dual agent. It can be a good idea if you are on a deadline — for instance, if you spend winters in another state and want to get the deal finished before you relocate.

Often, dual agents are receptive to lower their commission, since they’re getting a commission from both sides (versus two agents splitting the commission). Some agents won’t lower their commission — or will only drop off a percentage point, which doesn’t save you much money. Still, it never hurts to ask.

Why Find a Buyer’s Agent?

Whether you’re buying your first investment property or your fifth, you want to get a good deal. You may be wary of an agent who appears to be in it for the commission — not working hard to get you a deal. You may be more likely to have a bad experience when you hire a dual agent.

You may have heard that real estate agents have a fiduciary duty. This means that a seller’s agent has a duty to act in his or her client’s best interest at all times. For the agent to satisfy his or her obligation to the seller, he or she cannot help you (the buyer) get the best deal, as well. Someone loses, even if it’s a matter of $5,000 or $10,000. However, if it seems like you’re getting a great deal — and if you are willing to pay the asking price — a buyer’s agent can negotiate to save you money.

A buyer’s agent can also be forthright with you, since he or she does not have any obligation to the seller. While dual agents may be forthright to both sides, it’s tricky for them to maintain impartiality at all times. Even the most well-intentioned dual agent can slip up.

In some states — including Colorado, Florida and Texas — real estate agents cannot act as dual agents — thus, you must choose a buyer’s agent. To ensure impartiality, look for a buyer’s agent who is from a different brokerage. This reduces the likelihood that those agents will play office politics to try to get their clients a better deal.

Winston Rowe & Associates public-shed this article, they can be contacted at http://www.winstonrowe.com or 248-246-2243

Getting Mortgages For Rental Homes Winston Rowe and Associates

Mortgages For Rental Homes Winston Rowe and Associates

Winston Rowe and Associates offers financing products and solutions to help you consolidate your existing loans and grow your single-family rental portfolio.

Winston Rowe & Associates Fixed and Floating Rate financing highlights include:

No Upfront or Advance Fees

National Coverage

$500 Thousand to $100MM+

Up to 75% LTV (no less than a 1.20x DSCR)

5 and 10-year terms

Up to 30-year Amortization (I/O considered for low leverage loans)

Non-recourse (standard CMBS-style carve-outs apply)

Single Purpose Entity borrower

Soft/Springing Cash Management

Minimum net worth and liquidity requirements

Whether you are looking for a creative solution through our private money investors, or in search of institutional money, Winston Rowe & Associates can help put together a loan that will secure the rental home portfolio financing you need.

When you call Winston Rowe & Associates, a principal is always available to speak with prospective clients.

 

Hard Money Asset Based Lending

Asset-based, hard money loans are made by private money lenders which are non-institutional (non-bank) capital sources, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction.

They use a very strict set of rules regarding the collateral status of the physical assets being used to obtain a loan.

What is Hard Money Used For:

This type of financing is used for high risk business transactions that traditional banks or institutions will not lend on.

For example; Chapter 11 Bankruptcy, commercial property that is vacant or needs rehabilitation and other types of high risk business ventures, turnaround situations, short-term bridge financing and for investors who want to purchase properties to fix and flip.

Types of Collateral Used:

Asset based lending comprises business or a real estate loan secured by the liquidation value of their assets, generally at quick fire sale values.

A recipient receives this form of financing by offering real estate, inventory, accounts receivable and/or other balance-sheet assets as collateral.

Common assets that are provided as collateral for a hard money loan include physical assets like real estate, such as land and physical properties, company inventory and manufacturing equipment, or physical commodities.

If the borrower fails to repay the loan or defaults, the hard money lender can seize the collateral and sell the assets in order to recoup its loan amount.

In many cases the collateral to secure the loan is two times the value of the loan; hence the hard money lender will make a substantial profit even if the loan defaults.

Due Diligence and Underwriting:

Prior to authorizing a loan, lenders require a relatively lengthy due diligence process, which includes the inspection of the real estate, balance sheet, ledgers and assets to calculate the value of a company’s allowable borrowing capacity.

Costs associated with this analysis vary, but common charges include site visits, collateral evaluations and interest costs.

Hard Money Lending Source:

The objective at Winston Rowe & Associates is to add value to a client’s commercial real estate acquisition or refinance by offering a wide range of hard money, asset based financing solutions for; apartment buildings, hotels, shopping centers, office buildings, industrial property, raw land, medical offices, manufactured home developments and construction projects.

They can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com

Commercial Insurance Options That Apartment Owners Should Consider

WINSTON ROWE & ASSOCIATES REVIEWS

Having the right knowledge and some basic management skills are essential, but even seasoned landlords might be missing out on some crucial coverage.

You can minimize some of the risk by requiring your tenants to carry renter’s insurance; however the bulk of the insurance side of things is squarely on your shoulders.

Winston Rowe & Associates, a national advisory firm that structures apartment and multi-family financing solutions nationwide.

National Apartment Building Financing Zero Advance Fees

Apartment Bulding Financing

Winston Rowe & Associates provides financing for apartment properties nationwide. Their loan amounts on apartments can range from $500,000 with no upper limit. Fixed rates and interest only programs are available with debt coverage ratios for starting at 1.10 and up.

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

Winston Rowe & Associates are experts in multi-family and apartment building lending.  Historically, multi-family and apartment mortgage loans have constituted the largest portion of Winston Rowe & Associates total business volume.  Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a co-operative looking for an underlying mortgage, they can help you find the optimal financing solution to meet your individual needs.

Winston Rowe & Associates Apartment Building Finance Programs:

No upfront or advance fees
Close in 30 days with a complete submission
Rates start as low as 3.42% (as of 4/5/12)
Streamlined application process
Financing up to 80% LTV
Terms and amortizations up to 30 years
Long term fixed rates
Loans for purchase and refinance, including cash-out
Private money bridge loans available for a fast 2 week closing

 

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

Winston Rowe & Associates 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 Finance No Upfront Fees

Winston Rowe & Associates manages every step of the apartment financing process from document collection to commitment negotiation and closing.

Their best business practices process ensures that their clients receive lighting fast funding with the most aggressive rates and terms available, with no upfront or advance fees.

Prospective clients can speak directly to a principle at Winston Rowe & Associates at 248-246-2243 or email them at processing@winstonrowe.com or check them out online at http://www.winstonrowe.com

Winston Rowe & Associates offers apartment building loans on two different levels.

The first is their Fast and Easy Apartment Building Loan for $500,000 to $3,000,000. The second is the Multifamily and Apartment Building Loan for loans over $3,000,000.

The first level is designed for smaller buildings while the second level is designed for financing much larger, multifamily projects including student housing, senior living, and assisted living facilities.

Whether you need a small or a large apartment building loan for a pending purchase, the apartment units you are considering need to be in generally good condition and have little deferred maintenance.

Otherwise, if the building is in “fair” or “poor” condition, it will require you to make a significantly larger down payment, or may not qualify for an apartment building loan at all.

Winston Rowe & Associates Additional Loan Options:

In addition to their apartment building loans, Winston Rowe & Associates also offers bridge loans that can fund in as little as two weeks and loans for all commercial property types.

Most types of commercial property are eligible for commercial mortgage loans including office buildings, industrial and warehouse properties, retail buildings, strip centers and manufacturing facilities

Winston Rowe & Associates takes pride in being one of the few commercial financing platforms in the nation offering access to billions of dollars worth of capital.

Winston Rowe & Associates provides no upfront or advance 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

Healthy Living Apartment Communities Where People Want To Live

Winston Rowe & Associates, a national no advance fees commercial real estate financier has developed this news article to provide some advice to apartment community owners with some tenant retention methodologies.

Health is a very important aspect of life. It is also something that is hard to make a priority amidst our busy schedules. Creating programs in your community can help promote good health and encourage people to work together and help socialization build between tenants. Thereby creating a community where families want to live.

Here are four tips to create healthy community initiatives.

Have a community garden; If there are spaces available outside or on the roof, make a garden where people can grow their own crops. You can either do a community garden or have individual plots which residents sign up for. Residents then have the ability to plant and eat their own crops, encouraging eating whole, fresh foods.

Host healthy cooking classes; Many people are not great chefs in the first place, but hosting classes where you can gather residents and teach them healthy techniques for preparing meals, they can become much better cooks. Providing these opportunities can make a place where residents can come together, learn, enjoy good, healthy food together, and hopefully apply the things learned in their own kitchens.

Start running teams; Provide an opportunity for people to gather together, and instead of making exercise a chore, it will make exercise a social party! People can get friends to go running together, they can keep each other in check, and enter into community races to run with one another.

Start weight loss competitions; Creating a community goal to lose weight can encourage more people to jump on and work on their health. Have people set goals, track progress, and provide awards.

The goal at Winston Rowe & Associates is to add value to client’s acquisition or refinance by offering a wide range of financing solutions and direct access to top national, regional, and local retail banks, hedge funds and private capital lenders.

When you call Winston Rowe & Associates, a principal is always available to speak with prospective clients. They can be contacted at 248-246-2243 or email them at processing@winstonrowe.com

They also have many other solutions that meet almost every need. Check them out online at http://www.winstonrowe.com