Hospitality Lending Platform

Winston Rowe and Associates is focused on providing competitive hospitality financing to hoteliers through its strong network of correspondent lenders, in the U.S.

Hospitality Lending Platform

Property Types: Franchised hotels or upscale independent/boutique properties

Deal Type: Refinance, acquisition, cash out, PIP (in conjunction with acquisition/refinance), value add/reposition

Transaction Size: Single assets: $2 million and up

Portfolios: $5 million to $100 million

Term: 3, 5, 7 or 10 years

Amortization: Up to 30 years

Guarantees: Non-recourse, limited – full, performance based burn off

Leverage: Loan-to-value (LTV) not to exceed 75%

Interest Rates: Fixed and floating available

Debt Service Ratio: Flexible

Winston Rowe and Associates has long-lasting lending relationships with its network of correspondent hotel lenders that is comprised of life insurance companies, banks, agencies and conduits. Our hotel lenders provide Winston Rowe and Associate with limitless capital sources and enable us to provide our clients with a broad range of highly competitive hospitality financing options and loan products.

What happens to real estate during inflation?

Inflation, the economic term which refers to the devaluation of your money, can sound like a blaring car horn to the ears of many investors. However, while its consequences are simple enough (a rise in the cost of goods and services) it’s also comprised of many less obvious negative aspects as well.

For example, the direct effect that it has on the real estate market and housing prices (which includes impacting the many financial aspects involved in many kinds of real estate investment, from commercial real estate to single-family rentals).

Below, we describe these consequences in fuller detail and offer a solution that will allow investors to avoid the consequences of an inevitable rise in the inflation rate.

Consequences of Inflation on Real Estate Investment

Three consequences of inflation on real estate investment

1) Increase in cost of home construction

Remembering that inflation refers to a rising cost in the price of everyday goods, think of all the materials it takes to build a new home: from concrete and bricks to drywall and stucco, the list is quite long. Inflation means that all of these required materials just became more expensive for home builders.

2) Rising home prices

Consider the consequence of higher home building costs once more: as these put a greater financial burden on home builders, they have little recourse but to make up for it with higher listing prices for just-built properties. Unfortunately, this isn’t the only reason inflation causes real estate prices to rise. When the Central Bank increases the money supply in the economy (a primary cause of inflation), house prices automatically increase.

3) Decline in financed home purchases

Another effect inflation has on the housing market and real estate investing involves debt. When inflation rises, causing money to become more expensive to borrow, people don’t borrow as much of it; they may not even borrow any at all. This results in a chain reaction of fewer mortgage-financed home purchases, which may flatten economic growth.