Key Investment Guidelines For Rental SFR Properties

Real Estate Investing

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.

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

Commercial Mortgage Ratios Explained For Business Loan Underwriting

Real Estate Investing

Underwriting commercial real estate loans, there are three main ratios to us to analyze the quality of a financing request.

Loan-To-Value (LTV) Ratio

Debt Ratio

Debt Service Coverage Ratio (DSCR)

The first ratio is the Loan-To-Value Ratio:

The (LTV) equals the amount of the commercial mortgage divided by the market value of the property as determined by a commercial appraisal.

The Loan-To-Value Ratios for commercial real estate loans are capped at 75% or 80%.

The Debt Ratio:

Is the amount of personal monthly debt a borrower has divided by personal monthly income. In commercial lending, rarely does a commercial lender analyze the borrowers personal debt-to-income ratio, rather the underwriter focuses more on the property’s income and expenses.

Debt Service Coverage Ratio (DSCR):

The final ratio used in underwriting a commercial mortgage loan request is the Debt Service Coverage Ratio (DSCR). The DSCR equals annual net operating income divided by annual debt service. Net operating income is the gross rental income minus expenses. Most commercial lenders require a minimum DSCR of 1.25x.

Winston Rowe & Associates is a commercial real estate consulting and advisory firm providing financing solutions nationwide through their strategic relationships.

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

How To Value Commercial Property Using Gross Rent Multiplier (GRM) Formula

Real Estate Investing

The Gross Rent Multiplier (GRM) is a capitalization method used for calculating the approximate value of an income producing commercial property based on the property’s gross rental income.

To calculate the value of a commercial property using the Gross Rent Multiplier approach for valuation, simply multiply the Gross Rent Multiplier (GRM) by the gross rents of the property.

How to calculate the Gross Rent Multiplier (GRM):

In this example, the GRM for a property with a listing price of $640,000 and $80,000 in gross rental income is 8. Next, simply average the respective gross rent multipliers together and you will have a good indication of the local market GRM for your property type.

To calculate the Gross Rent Multiplier, divide the selling price or value of a property by the subject’s property’s gross rents.

The GRM calculation of value

Property Value = Annual Gross Rents X Gross Rent Multiplier (GRM)

$640,000 = $80,000 X 8 (GRM)

In this example – using a GRM of 8 – a property that generates $80,000 a year in gross rental income has a value of $640,000.

Calculate a GRM

To calculate a GRM, take the listed selling price and the annual gross rental income and divide one into the other, the equation looks like this:

GRM = Sales Price / Annual Gross Rents

8 = $640,000 / $80,000

The major difference in valuation between the income approach to valuation via the appraisal and the GRM approach to valuation is the former uses net income in the calculation of valuation while the latter uses gross income.

Winston Rowe & Associates has a core business focus providing expert knowledge, while leveraging their strategic capital source relationships, providing clients with the most competitive rates and terms in the commercial real estate markets.

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

Data Needed To Make A Commercial Property Investment

As a commercial real estate investor you need to take a careful and critical look at the income and expense data of any property you are considering investing in.

To begin the analysis of income and expenses is to focus in the following areas.

Gross Scheduled Income is the total annual rent value of all units in the property. This amount includes the actual rent generated by occupied units, as well as the potential rent from vacant units.

Vacancy Allowance is usually expressed as a percentage of the gross scheduled income. As its name suggests, it is an estimate of the amount of potential income that will be lost due to vacancy. Some investors prefer to call this “vacancy and credit loss” so that it also accounts for uncollectible rent.

Gross Operating Income (GOI) is the gross scheduled income less the vacancy allowance. It is also known as effective gross income. In short, it is the amount you actually collect.

Operating Expenses are items such as property insurance and taxes, repairs, utilities, and management fees. Operating expenses include any costs that are necessary to keep the revenue stream flowing. Mortgage payments and depreciation are not considered operating expenses, or are capital improvements.

Net Operating Income (NOI) is the gross operating income less the operating expenses. In other words, it is what is left of your total potential income after all vacancy and expense have been subtracted.

Annual Property Operating Data (APOD) is the real estate equivalent of an income and expense statement.

Winston Rowe & Associates is a no upfront fee commercial real estate advisory and due diligence firm specializes in the financing of commercial real estate transactions.

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

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

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

Net Income Multiplier For Business Valuation Winston Rowe and Associates

Real Estate Investing

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

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

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.

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

Business Financials For Due Diligence Explained

Real Estate Investing

All business professionals need a good working knowledge of financial statements to include how they are created and how they can be used to make key business decisions.

Business transactions are transformed into financial statements through a due diligence and accounting process.

Three required statements are produced:

Income Statement

Balance Sheet

Cash Flow Statement

The statements provide results of business activity, not the reasons. To understand the reasons, we must look at relevant ratios.

These ratios are standard indications of business reasons and serve as the basis for key business decisions.

They are derived from a combination of calculations of components of the financial statements to indicate a unique and universally accepted metric or measurement.

We can glean relevant indications of the company’s success from these metrics. They become the “language” through which we understand business activity and we use them to help understand and analyze financial statements and also compare one company to another or one financial period to another.

Winston Rowe & Associates utilizes an initial due diligence review that provides an in depth understanding of business and financial activity as it pertains to the financing commercial real estate transactions.

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.

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

Calculating The Debt Coverage Ratio For A Commercial Loan Proposal

When a commercial real estate lender is carefully reviewing your financing request, they are focusing on the prospective borrowers ability not only make their monthly mortgage payments, but also show a profit and maintain cash reserves for future contingencies.

The commercial lender relies on the debt coverage ratio (DCR) and net operating income (NOI) as key factors in their due diligence for your financing request.

It’s important to understand the concept and math behind the DCR if you are calculating your own cash flow analysis for a prospective commercial real estate loan, whether it’s a purchase or refinance.

This is how you arrive at the debt service ratio (DCR).

First, calculate the gross operating income (GOI) also known as the effective gross income (EGI) which equals the property’s annual gross scheduled income less vacancy and credit loss. The GOI is not the property’s potential income, but represents instead the actual income that you expect.

Gross Operating Income = Gross Scheduled Income less Vacancy and Credit Loss

Second, calculate the net operating income (NOI) which is the commercial properties income after being reduced by vacancy and credit loss and all operating expenses. This represents the properties profitability before taxes, financing and recovery of capital.

Net Operating Income = Gross Operating Income less Operating Expenses

Third, calculate the annual debt service (ADS) which is the total of all principal and interest payments made over the course of a year.

Annual Debt Service = Monthly Payment  X  12

Finally, calculate the debt service ratio (DCR) which is the ratio between the property’s net operating income (NOI) for the year and the annual debt service (ADS).

Debt Coverage Ratio = Annual Net Operating Income  /  Annual Debt Service

Most commercial real estate lenders look for a DCR of at least 1.20, often even more. A property with a 1.20 DCR has income before debt service, that is 1.20 times as much as the debt service – in other words, the commercial property generates 20% more net income that it needs to make its mortgage payments.

When you are developing your commercial real estate financing proposal for a lender, you can be certain that the lender will carefully examine the DCR and the data that was utilized.

Winston Rowe & Associates is a no upfront fee commercial real estate advisory and due diligence firm that specializes in the financing of commercial real estate transactions.

They actually want to speak with clients directly, so they can truly understand their business and its distinct needs.

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

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

CMBS Loans Explained

CMBS stands for commercial mortgage-backed securities. A CMBS loan is a commercial real estate loan that is backed by a first-position commercial mortgage.

CMBS loans are for properties such as apartments, hotels, warehouses, offices, retail, or any other type of real estate that is used in connection with a company or business in need of such a space.

There are two types of CMBS loans — the traditional version or the delegated program.

The traditional version works much like a conventional loan.

Terms are agreed upon by both the investor and the lender, and then the lender appoints a trust vehicle for the loan. The loan is then separated into bonds — also known as tranches — that are created based on a risk assessment of the value of the loan.

The delegated program is a CMBS loan where there is one buyer for the CMBS loan and terms are agreed upon before the actual loan application is filled out.

The terms generally come from the financial institution where the CMBS loan originated from.

Underwriting Parameters:

For CMBS Loans, Conduit Lenders have reverted back to more prudent real estate credit decisions, with a much more conservative attitude towards risk.

In addition to more traditional loan to value (LTV) maximums of 75%, and debt service coverage ratios (DSCRs) of at least 1.25x, Lenders are also calculating the anticipated debt yield (net operating income/loan amount) of at least 7-8%.  Borrowers should expect to have “hard cash” equity invested in their projects, while being able to maintain a post-closing liquidity of at least 5% of the loan amount and an overall net worth of at least 25% of the loan amount.

Winston Rowe & Associates prepared this knowledge based article.

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

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

Financing Requirements for a Commercial Bridge Loan

Winston Rowe & Associates, a no advance fee advisory and finance firm specializing in commercial real estate bridge loan funding solutions nationwide.

They have prepared a series of overview articles to provide investors with the information required for structuring the financing for a commercial bridge loan.

When speed and experience are important and crucial to your real estate success, contact Winston Rowe & Associates, a principle 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 commercial real estate financing solutions that meet almost every need. Check them out online at http://www.winstonrowe.com/

Basic Bridge Loan Overview:

Commercial real estate bridge loans are utilized for distressed and higher risk purchasing, refinancing or holding properties that are being repositioned, re-tenanted, improved or otherwise redeveloped, that traditional banks won’t finance.

The typical structure for a bridge loan has:  low loan to value, higher interest rates than a conventional loan and a very short term, hence the term “bridge”. This type of loan needs to have a clearly defined exit strategy for long term financing.

Acquisition/Purchase Bridge Loans:

When utilizing a bridge loan for the purchase of a distressed or higher risk property, the investor needs to understand that a cash down payment will be required, there will be personal FICO standards and your past business experience will be scrutinized by your potential lender.

Many new commercial real estate investors make the mistake of thinking that an appraisal or future completed value is the equity (down payment) into the purchase transaction if it is greater than the acquisition price.

This is never the case, here’s why. The actual value of the property is the sales price, not the asking (appraised) value or its future value. Think of buying a vintage car for one price then fixing it up and selling it for a higher price. Why would you over pay for the future value? The lender looks at the transaction the same way.

Another issue that new real estate investors run into is, trying to use a bridge loan as a down payment to purchase a commercial property trying to structure no money down transaction.

In the current market, you will need to have skin in the game (cash). All lenders will require that the investor share in the risk.

Refinance Bridge Loans:

It’s very common for an existing property owner to be approached by their current bank with a discount on their commercial mortgage.

There are many reasons for this. Local market conditions, a drop in occupancy, the repositioning of the bank’s portfolio or the borrower no longer meets the banks current personal or business credit requirements.

The initial response from the real estate owner is. I’ll just go down the street and apply for a new loan with another bank. After a number of bank applications, you quickly discover your property does not qualify for traditional financing. Even though you have a very low loan to value and you’ve been making your payments on time.

Here’s why. All FDIC banks have the same underwriting guidelines for commercial loans. When your application is reviewed buy a new bank the same reason(s) your current bank had used to ask you to seek new financing, will be utilized to decline your new request.

Your next option is going to be a short term bridge loan that will enable you to correct the deficiencies or to stabilize the property so it can qualify for more traditional financing, within the next 12 to 36 months.

Myths about Bridge Loans:

There are some common misconceptions that commercial real estate borrowers have when it comes to bridge loans.

The first misconception is: – You don’t need good personal credit or bridge lenders never check credit.

All lenders, both private and agency will review your personal credit as part of their global due diligence and underwriting approach. If you have a low credit score, in the 500’s, no lender is going to consider you as potential client.

The second most common misconception is: – The lender only considers the value of the property; hence I don’t have to have a down payment, or any kind of documentation.

Value and loan to value are only part of the equation. You will need a down payment. The lender is going to take a hard look at your previous business experience, business and personal financials as well as exit strategy.

The third most common misconception is: – I don’t need to have any liquidity (cash) in my bank account because all my money is in the deal.

One of the first things all lenders review is a client’s personal financial statement. If you are not liquid a lender will be very hard pressed to approve your loan request. They take the position: They’re not a charity and if you’re out of cash you’re out of business.

The Winston Rowe & Associates Advantage:

Winston Rowe & Associates best business practices process ensures that their clients receive lighting fast funding solution 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 bridge loan solutions nationwide.

Small Business Administration Loans

Business owners with a conventional commercial property mortgage can finally take advantage of the low fixed rates on government guaranteed loans through the Small Business Administration (SBA) 504 Refinancing Program

The SBA 504 Program can refinance up to 90% loan-to-value; 75% on cash-out loans

A borrower can leverage up to 90 percent of the value of a commercial property to pay off qualifying debt. An SBA 504 loan is made up of a first and a second lien. An SBA lender provides up to 50 percent of the value of the property on the first loan and a non-profit organization authorized by the SBA called a Certified Development Company (CDC) funds the government guaranteed second loan up to40 percent.

The refinance can include cash-out to cover eligible business operating expenses such as salaries, rent, utilities, inventory, or other obligations of the business but the maximum loan-to-value would be lowered to 75 percent.

Small Business Administration (SBA) Programs:

Eligible Locations: MSA’s within the U.S. and its territories exhibiting strong economic and property-type specific fundamentals

Eligible Use: Acquisition and Refinance of Owner-Occupied, Hospitality, Multi-Use and Special Purpose Properties

Loan Amount: $500,000 Up to $14,000,000

Loan Term: Up to 25 Years

Amortization: Up to 25 Years

Loan to Value: Up to 90% of FIRREA Appraised Value. Minimum 1.20x DSCR on in-place cash flow

DSCR: Minimum 1.20x DSCR on in-place cash flow

Reserves: Tax and Insurance

Sponsor (s): Creditworthy individual(s) acceptable to Lender with sufficient liquidity and net worth

Borrowing Entity: Operating entity that will occupy the commercial real estate

Recourse: Full-Recourse

Assumability: Yes, in case of building sale for $1000 assumption fee

Prepayment: 5-Year Prepayment Penalties

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 financing solutions through their direct access to top national, regional, and local retail banks, hedge funds, hard money and private capital lenders.

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

Commercial Mortgage Ratios Explained For Business Loan Underwriting

Underwriting commercial real estate loans, there are three main ratios to us to analyze the quality of a financing request.

Loan-To-Value (LTV) Ratio

Debt Ratio

Debt Service Coverage Ratio (DSCR)

The first ratio is the Loan-To-Value Ratio:

The (LTV) equals the amount of the commercial mortgage divided by the market value of the property as determined by a commercial appraisal.

The Loan-To-Value Ratios for commercial real estate loans are capped at 75% or 80%.

The Debt Ratio:

Is the amount of personal monthly debt a borrower has divided by personal monthly income. In commercial lending, rarely does a commercial lender analyze the borrowers personal debt-to-income ratio, rather the underwriter focuses more on the property’s income and expenses.

Debt Service Coverage Ratio (DSCR):

The final ratio used in underwriting a commercial mortgage loan request is the Debt Service Coverage Ratio (DSCR). The DSCR equals annual net operating income divided by annual debt service. Net operating income is the gross rental income minus expenses. Most commercial lenders require a minimum DSCR of 1.25x.

Winston Rowe & Associates is a commercial real estate consulting and advisory firm providing financing solutions nationwide through their strategic relationships.

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

Hard Money Asset Based Lending Definition

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

Small Balance Commercial Lending

Finding funding for a small business can be a pain, especially when you have a mission critical need that can’t wait, with traditional banks making access to capital hard to come by for small balance business loans for; operating capital, equipment, building purchase, refinance, renovations and debt consolidation.

There are now hundreds of fast online lending options, and very few are actually any good.

Winston Rowe & Associates is not like other capital sources pushing clients to quickly sign a bait-and-switch “low-interest” loan layered with huge hidden fees, they work closely with clients to develop a personalized funding solution that works for the distinct needs of your 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 to 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 their business and its distinct needs.

Winston Rowe & Associates qualification process takes many factors into account, including: Time in business, annual revenues and the business owner’s credit history. If you have been in business for more than a year, have annual revenues above $100,000 and have a personal credit score of 500 or above, you may qualify.

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

Commercial Building Small Balance Loan Rates With No Advance Fees

Winston Rowe & Associates a commercial real estate financing company that provides loans to owners and investors of commercial properties through their extensive network of direct capital sources.

They have commercial financing solutions available nationwide on a variety of asset types specializing in SBA 504 Loans for company owners, and Bridge Loans and CMBS for property investors.

Commercial Property Bridge Mortgage Rates:

Rates Start at L+6.99%

1- 2 year terms

Loan balances starting at $1MM

Only 3-6 month minimum interest (pre-payment penalty)

Quick Close, DPO Financing, Debt Refinancing & Restructuring, and Partner Buyouts

Winston Rowe & Associates capital sources specialize in Hotel, Office, Retail, Industrial, Flex, Multi-family and Mobile Home Parks, and Bridge to SBA for owner-occupied commercial real estate.

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.

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

Best Markets to Buy and Hold Real Estate

Real estate investors whose strategy is to buy and hold rental properties are facing higher initial purchase prices, a much tighter inventory of properties to choose from and a resurgence of interest from large institutional investors.

Here are the top 10 counties for best annual gross rental yield and lowest investment property vacancy rate during the first seven months of 2016.

Monroe County, Pennsylvania: 16 percent rental yield, 0.4 percent vacancy rate

Hernando County, Florida: 14.3 percent rental yield, 2.1 percent vacancy rate

Lackawanna County, Pennsylvania: 12.1 percent rental yield, 2.1 percent vacancy rate

Westmoreland County, Pennsylvania: 11.8 percent rental yield, 2.8 percent vacancy rate

Davidson County, North Carolina: 11.8 percent rental yield, 2.6 percent vacancy rate

Marion County, Florida: 11.7 percent rental yield, 1.9 percent vacancy rate

Wicomico County, Maryland: 11.7 rental yield, 2.1 percent vacancy rate

Randolph County, North Carolina: 11.1 percent rental yield, 2.7 percent vacancy rate

Ulster County, New York: 11 percent rental yield, 2.1 percent vacancy rate

El Paso County, Texas: 11 percent rental yield, 1.9 percent vacancy rate.