Understanding Prepayment Penalties

Mortgage loans are expensive to originate.  It is not uncommon for consumer mortgages to cost upwards of $9,000.  Lenders typically recoup those costs through a combination of upfront fees and interest revenue over the life of the loan. 

If a borrower pays off a loan shortly after origination, the lender is at risk of losing money on the loan. Enter prepayment penalties.  A prepayment penalty is a contractual clause that states the borrower is going to pay the lender an additional fee if the borrower pays the loan off early.  This really isn’t a penalty at all.  It is a way for the lender to make sure they don’t lose money on a loan.

For example a standard prepayment penalties with a 5 year structure of 5/4/3/2/1 structure. This means that if the borrower pays off the loan in year one, they have a 5% prepayment penalty, in year two, a 4% prepayment penalty, in year three, a 3% prepayment penalty, and so forth. So, you might be wondering how this affects the borrower, and the answer is, it depends on your investment strategy. Let’s dive in.

The rental investors looking to grow a legacy of rental properties and hold on to them long term (we call these properties “permanent rentals”) are not really affected by the prepayment penalty.  Since their investment strategy focuses on the lifetime of the loan, paying off the loan in the first five years is a moot point.

On the other hand, investors looking to purchase rental properties with flexibility to sell in the foreseeable future (we call these properties “transitional rentals”) are very concerned about the prepayment penalty. These investors are interested in market conditions and want to be able to sell the property at the right time without worrying about paying a penalty fee.

Free Business And Real Estate Investing eBooks

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Welcome to Winston Rowe and Associates knowledge blog, scroll down to the right for posts about commercial real estate.

This is a list of free books about real estate investing, commercial real estate financing and business strategy.

We’re always on the lookout for great free books so bookmark this blog and check back for monthly updates.

These links are not affiliate marketing links, just publications that we feel may add value to people and businesses.

Commercial Real Estate Finance

The eBook Commercial Real Estate Finance, 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.

Real Estate Investing Articles

This is a link to 1226 real estate investing articles written by industry veteran’s.

25 Productivity Tips for Successful Business Owners

Productivity is critical to your success at work. Business owners, managers and executives all want to get the most from their employees. If you’re not performing as efficiently or effectively as others, your long-term job prospects could be in trouble.

Real Estate Investing: How to Find Cash Buyers and Motivated Sellers

“Real Estate Investing: How to Find Cash Buyers and Motivated Sellers” teaches real estate investors and those interested in learning to invest in real estate how to define and target ideal cash buyers and motivated sellers. The book covers absentee owners, rehab investors, Section 8 landlords, and other buyer types. Some of the marketing topics include mailing lists, postcards, both online and offline marketing strategies along with examples. Anyone who wants to wholesale a house or is curious about flipping houses should pick this book to get educated on cash buyers and motivated sellers for their real estate investing.

Real Estate – Breaking Bad How to Flip Decaying Real Estate Properties for Profit

Tired of working 9 to 5? You should think of making money with real estate! Yes, the effort is well worth it! You just have to ditch the misconceptions and embark with all the passion you have in store for this amazing trip of rehabbing old houses and giving them a new look and a new owner.  Your reward? A nice profit!

Real Estate Forms Portfolio

A FREE and ready-for-download eBook consisting of a comprehensive collection of real estate-related forms for real estate investors.

Real Estate Secrets Exposed

This FREE e-Book sheds some light on the often mysterious and sometimes daunting world of real estate.

Use 1031 Real Estate Exchanges to Create Multiple Streams of Income

Discover how to use 1031 tax-free exchanges, tenants in common interests, and zero cash flow properties to create new sources of income. Learn how to offer bundled services and attract new clients. This FREE, ready for download eBook is perfect for anyone involved in real estate, taxes, mortgages, insurance, or law.  Download it now!

Make Money Through Real Estate Renovations

Download this FREE eBook and learn how a successful investor makes thousands of dollars from real estate renovations. Download it now!

Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders

Download this FREE e-Book, and discover the new secrets of funding real estate deals in the post-bubble real estate market, where traditional lending sources are getting very difficult to obtain. Download it today!

Real Estate Investing Strategy for Rehabs

This eBook is about residential rehabbing and the multiple strategies that can be used to maximize profits in this current economic climate. My goal has always been to share knowledge with folks that are truly interested in rehabbing and view it as not only for monetary gain but also see is as an “art and science” like I do. Happy Rehabbing!!

How to Be A Super Property Investor

A FREE, step-by-step guide that will help you become a super real estate property investor. Learn all the basic and some advanced investing techniques that have generated millions for property investors. Ready for download now!

Financial Terms Dictionary – 100 Most Popular Financial Terms Explained

This practical financial dictionary helps you understand and comprehend more than 100 common financial terms. It was written with an emphasis to quickly grasp the context without using jargon. Every terms is explained in detail with 600 words or more and includes also examples. It is based on common usage as practiced by financial professionals.

The Prince by Niccolò Machiavelli

Niccolò di Bernardo dei Machiavelli was an Italian diplomat, politician, historian, philosopher, writer, playwright and poet of the Renaissance period. He has often been called the father of modern political philosophy and political science.

The Science of Getting Rich by W. D. Wattles

This book is pragmatical, not philosophical; a practical manual, not a treatise upon theories. It is intended for the men and women whose most pressing need is for money; who wish to get rich first, and philosophize afterward. It is for those who have, so far, found neither the time, the means, nor the opportunity to go deeply into the study of metaphysics, but who want results and who are willing to take the conclusions of science as a basis for action, without going into all the processes by which those conclusions were reached.

Sun Tzu Art of War

Written in the fifth century B.C., Suntzu and Wutzu still remain the most celebrated works on war in the literature of China. While the chariot has gone, and weapons have changed, these ancient masters have held their own, since they deal chiefly with the fundamental principles of war, with the influence of politics and human nature on military operations; and they show in a most striking way how unchanging these principles are.

Make Extra Money Flipping Houses While On Vacation by Jason Medley

Reveals his simple and proven systems to automate, delegate and outsource nearly every function of his business except cashing his checks. He shows the exact steps that has allowed him to go on multiple vacations with his family throughout the year while having his system continue to flip houses for him.

Achieving Wealth Through Real Estate: A Definitive Guide To Controlling Your Own Financial Destiny Through a Successful Real Estate Business

Have you ever thought about making money with real estate? In Achieving Wealth Through Real Estate: A Definitive Guide to Controlling Your Own Financial Destiny Through a Successful Real Estate Business, author and entrepreneur Kirill Bensonoff takes you through the process of starting your own real estate business step-by-step, featuring his expert tips and tricks.

Business Loans Uncovered

Knowing if you qualify is one of the most important things to know when applying  for a loan of any type. Blindly applying for a loan and being declined increases the chances of you being declined again and again because you not only lower your credit score each time you apply, multiple inquires also serves a red flag to other lenders and as a result lenders put you in a high risk category and charge higher interest rates in the event of an approval Includes: ​Traditional Lenders, Government Sources, The 7(a) loan guarantee program, SBA Low Doc loan program, SBA Express loan program, Factoring, Venture Capitalists, Angel Investors.

50 Simple Secrets To Be A Happy Real Estate Investor

Discover the secrets used by successful real estate investors to create happiness in their lives and businesses. Naturally create more happiness for yourself by implementing time-tested secrets to happiness used by other real estate professional and investors just like you. Start to experience more productivity, satisfaction, and success immediately.

50 Simple Secrets To Be A Happy Real Estate Investor

Discover the secrets used by successful real estate investors to create happiness in their lives and businesses. Naturally create more happiness for yourself by implementing time-tested secrets to happiness used by other real estate professional and investors just like you. Start to experience more productivity, satisfaction, and success immediately.

Marketing Strategies for Real Estate Photography

One of the biggest problems that real estate photographers have once they have set up their business as a legal entity, obtained all the right equipment and perfected their technique is obtaining new clients.

Clients and customers are the lifeblood of any business, but how do you obtain new clients after starting your business?

By developing and executing a strategic marketing plan tailored to your business.

This short guide has been written to help real estate photographers develop their marketing plan and assist with winning new business.

It includes a series of digital and direct marketing strategies along with useful tips and lessons the author has learned from his own experiences that can save you time and money when growing your business.

A marketing action plan template has been included to help photographers execute the strategies learned in this guide book.

Books by Dr William Edward Deming

William Edwards Deming (October 14, 1900 – December 20, 1993) was an American engineer, statistician, professor, author, lecturer, and management consultant.

Educated initially as an electrical engineer and later specializing in mathematical physics, he helped develop the sampling techniques still used by the U.S. Department of the Census and the Bureau of Labor Statistics.

In his book The New Economics for Industry, Government, and Education Deming championed the work of Walter Shewhart, including statistical process control, operational definitions, and what Deming called the “Shewhart Cycle, which had evolved into Plan-Do-Study-Act (PDSA). That was in response to the growing popularity of PDCA, which Deming viewed as tampering with the meaning of Shewhart’s original work.

Deming is best known for his work in Japan after WWII, particularly his work with the leaders of Japanese industry. That work began in July and August 1950, in Tokyo and at the Hakone Convention Center, when Deming delivered speeches on what he called “Statistical Product Quality Administration”.

Many in Japan credit Deming as one of the inspirations for what has become known as the Japanese post-war economic miracle of 1950 to 1960, when Japan rose from the ashes of war on the road to becoming the second-largest economy in the world through processes partially influenced by the ideas Deming taught

Medical Office Building Loans No Upfront Fees

WINSTON ROWE AND ASSOCIATES REVIEW US ON LINE

 

Winston Rowe & Associates provides no upfront fee commercial real estate financing for Medical office buildings and healthcare properties nationwide. They have a thorugh understand the special financing needs of Medical office building and structure commercial property loans for acquisition and refinancing.

Investors seeking financing can contact Winston Rowe & Associates directly at 248-246-2243, or visit them online at: http://www.winstonrowe.com

They have medical office building commercial loans for borrowers with competitive rates and flexible financing options. They can also arrange quick close private financing, including bridge loan for all types of medical office and healthcare properties with emphasis on speed.

Winston Rowe & Associates quick close private financing is suitable for opportunistic, undervalued or other special situations where the investor needs to close the transaction in matter of days.

Winston Rowe & Associates private money financing is an alternative solution for all types of commercial real estate properties for acquisitions, development and construction, rehab and repositioning, turnarounds, bank workouts, foreclosures, probate sales, and bankruptcies.

Their unparalleled service to its clients and is one of the fastest growing consulting firms in the commercial financing market. Their concise delivery is often imitated, but never duplicated.

Winston Rowe & Associates has no upfront free commercial real estate loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Office Building Lending No Upfront Fees

WINSTON ROWE AND ASSOCIATES REVIEW US ONLINE

 

Winston Rowe & Associates specializes in providing the national office building financing. They can structure purchase, construction, or the refinance an existing office building.

They do all of this without upfront or advance fees to process and perform the due diligence for your shopping center transaction.

For more information office building financing, 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

Office building financing is available starting at $500,000 up to $500 million plus. With loan to value up to 75% is available with adjustable and fixed rate programs that can be amortized up to 30 years. The best terms and rates are available through your CMBS program which is available for loans starting at $10 million.

Winston Rowe & Associates has the knowledge and experience to assist clients in structuring office building financing that best suits your needs. Their experience in the commercial real estate finance industry also allows them to procure the most competitive interest rates on the market.

They have no upfront fee commercial office loan programs 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

Office Building Financing With No Upfront Fees

If you want to expand your commercial office holdings and are looking for the best financial connection, then look no further than Winston Rowe & Associates, unlike most firms they have no upfront fees.

Winston Rowe & Associates provides acquisition and refinance options for a wide range of properties and purposes including:

• Single tenant, multi-tenant and credit tenant offices
• Construction / Take-Out
• Acquisition Loans
• Permanent office building financing
• Bridge and short term office building loans

Winston Rowe & Associates provides simple, successful commercial lending consulting services. They provide savvy business owners and investors with hassle-free commercial financing.

Winston Rowe & Associates only accepts clients that are established companies, on a limited basis (in business at least two years) who have revenues of at least $1 million, and who have substantial assets. Transactions are only considered in excess of $2,000,000., with no limit and are located within or near major metropolitan areas in the United States.
You can contact them at 248-246-2243 or apply on line at http://www.winstonrowe.com

Office Building Financing Cash Out Loan No Upfront Fees

CASH OUT REFINANCE OFFICE BUILDING LOANS ON LINE

Winston Rowe & Associates has been one of the most trusted and respected private capital firms in the country. You can contact Winston Rowe & Associates at 248-246-2243 or http://www.winstonrowe.com

They have financing solutions from everything from downtown high rises to suburban office parks; this is one of Winston Rowe & Associates specialties in their commercial loan business consulting practice.

Winston Rowe & Associates provides customized office financing solutions for commercial investors nationwide, without upfront or advance fees.

Office Building Loan Criteria:

No Upfront Fees
Loan amounts are $2,000,000. to $500,000,000.
High LTV of up to 80%
Up to 30-year fixed rates
Flexible terms available
Nationwide

Whether you need to refinance an existing office property or you need acquisition financing, Winston Rowe & Associates can help you structure the office building loan that meets your needs, without upfront fees.

Winston Rowe & Associates success is measured by their clients’ success, and it’s their mission to be their clients source for the most appropriate – and advantageous – office building financing solution that helps clients thier goals.

Office Building Lending No Upfront Fees Winston Rowe Associates

OFFICE BUILDING LENDERS ONLINE

 

Winston Rowe & Associates specializes in providing the national office building financing. They can structure purchase, construction, or the refinance an existing office building.

They do all of this without upfront or advance fees to process and perform the due diligence for your shopping center transaction.

For more information office building financing, 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

Office building financing is available starting at $500,000 up to $500 million plus. With loan to value up to 75% is available with adjustable and fixed rate programs that can be amortized up to 30 years. The best terms and rates are available through your CMBS program which is available for loans starting at $10 million.

Winston Rowe & Associates has the knowledge and experience to assist clients in structuring office building financing that best suits your needs. Their experience in the commercial real estate finance industry also allows them to procure the most competitive interest rates on the market.

They have no upfront fee commercial office loan programs 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

Office Building Lending No Upfront Fees

Winston Rowe & Associates specializes in providing the national office building financing. They can structure purchase, construction, or the refinance an existing office building.

They do all of this without upfront or advance fees to process and perform the due diligence for your shopping center transaction.

For more information office building financing, 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

Office building financing is available starting at $500,000 up to $500 million plus. With loan to value up to 75% is available with adjustable and fixed rate programs that can be amortized up to 30 years. The best terms and rates are available through your CMBS program which is available for loans starting at $10 million.

Winston Rowe & Associates has the knowledge and experience to assist clients in structuring office building financing that best suits your needs. Their experience in the commercial real estate finance industry also allows them to procure the most competitive interest rates on the market.

They have no upfront fee commercial office loan programs 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

Office Building Investments Making A Comeback 2013

WINSTON ROWE & ASSOCIATES WEBSITE

248-246-2243

PROCESSING@WINSTONROWE.COM

While suburban office markets gained more occupied stock than CBD properties in absolute terms, the figures do not look as impressive once relative measures are considered. Since suburban markets are about twice as large as CBDs (80 percent of all office construction from 1990 to 2010 occurred in suburban areas), occupied stock increased by about the same relative pace: around 0.8 percent over the last five quarters, relative to end-2010 figures.

At 18.8 percent, suburban office vacancies remain 450 basis points higher than CBD vacancies, which ended the first quarter of 2012 at 14.3 percent. CBD vacancies fell by 50 basis points from end-2010 to the first quarter of 2012, while suburban vacancies fell by 30 basis points.

The recession ended in June 2009, but economic growth and job creation has been very measured and office leasing has not been very robust. Although the pace of job creation increased slightly over the first four months of 2012, posting an average monthly gain of 200,750, office-using employment has not increased as fast as total job figures. Total employment increased by 1.6 percent year-over-year from the first quarter of 2011 to the first quarter of 2012; the comparable figure is only 1.3 percent for office-using employment.

 Since many of the net job gains over the past 18 months have been in the education, healthcare and ospitality sectors, demand for office space has remained subdued.

 National office vacancies fell only by a scant 40 basis points since it peaked at the end of 2010 at 17.6 percent, down to 17.2 percent by the first quarter of 2012. During healthier times, office sector vacancies could drop 40 basis points in a single quarter.

 “With the pie of office leasing not growing quickly, both CBD and suburban areas may be posting improvements, but CBD properties are capturing more of the underlying gains,” notes Michael Steinberg, an analyst at Reis. As mentioned previously, CBD vacancies fell at a faster pace than suburban vacancies. At $29.64 per sq. ft., CBD effective rents are well past where they bottomed in 2010, having risen by 3.9 percent since the first quarter of 2010. By contrast, at $19.01 per sq. ft., suburban effective rents are only 0.2 percent above levels from the first quarter of 2010.

  It can be argued that CBD gains could have come faster had occupancy growth not slowed starting in mid-2011. Banks, law firms, lenders and other financial services firms that occupy large swaths of CBD office space remain embattled because of the European sovereign debt crisis and the uncertain regulatory environment, and continue to announce layoffs and restructuring efforts. A convincing argument can also be made, however, that bank layoffs and failures will not affect just CBD office markets: Suburban branches of embattled lenders can be shut down, perhaps more easily, than bank headquarters located in central business districts.

 The trends we discussed in December 2010 remain in force, and will continue to exert downward pressure on suburban office fundamentals.

 First, with single-family home prices continuing to remain near the bottom, job growth may remain depressed in suburban areas.

 Second, technology and infrastructure that enable telecommuting like VPN access or free or low-cost videoconferencing may dampen demand more, on the margin, for suburban office space, vis-à-vis downtown headquarters where face-to-face meetings typically prefer to be held.

 Finally, CBD office space remains cheap relative to suburban office space, given that CBD landlords had to lower rents more during the downturn.

 If economic growth accelerates and job creation becomes more dispersed geographically, expect suburban office fundamentals to recover at a faster pace. However, it is likely that CBD office fundamentals will continue to turn in better performance measures over the next three to five years.

 CBD vacancies have been lower than suburban vacancies since 1999 (prior to this, suburban vacancies actually trended lower than CBDs), and Reis does not expect any reversal anytime soon.

Office Building Loans Nationwide No Upfront Fees

WINSTON ROWE & ASSOCIATES

Winston Rowe & Associates specialize in office building and office complex loans over $500,000 with no limit.

They work with a variety of lenders nationwide who offer office building financing with competitive loan rates and terms.

No Upfront or Advance Fees Office Building Financing from $500,000.

Up to 80% LTV

Office Building Financing for Purchases, Refinancing, Cash Outs.

Competitive Office Building Loan Rates and Terms

Nationwide Commercial Investors that need a company that specializes in navigating the complex requirements unique to financing commercial office properties can turn to Winston Rowe & Associates  extensive experience in providing the best financing solutions anywhere in the United States.

With Winston Rowe & Associates you can expect efficiency, flexibility and professionalism as they work to get you to the closing table fast, without upfront fees.

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

National Medical Building Financing No Upfront Fees Winston Rowe & Associates

Winston Rowe & Associates provides a diverse innovative Medical Complex lending platform provides Medical complex loans from $1,000,000 to $50+ million dollars.

For more information about Winston Rowe & Associates medical building loan programs, they can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com

Winston Rowe & Associates specializes in arranging financing around the United States for Medical Office Developments, Medical Facilities of almost every description and Medical Research & Development Buildings.

Winston Rowe & Associates can also arrange quick close private financing, including bridge loan for all types of Medical office and commercial office properties with emphasis on speed.

Medical Building Financing Programs:

No upfront or advance fees to process your transaction
National coverage
One Million Dollars to Fifty Million Dollars
All medical property types considered
Purchase, Refinance & Cash Out
30 day close with complete submission

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

Recognizing that people and relationships drive this business, they are affiliated with some of the industry’s most committed commercial finance professionals.

No Advance Fee Bridge Loans For Apartments, Office, Hotel

When time critical business transactions are at stake you can rely on Winston Rowe & Associates commercial hard money expertise.

They are a national commercial real estate finance firm that does not charge upfront or advance fees. With their commitment to quality of service and unparalleled responsiveness allows them to meet deadlines of projects that must absolutely be funded.

Prospective clients with questions concerning their hard money loan programs can contact Winston Rowe & Associates at 248-246-2243 or visit them on line at http://www.winstonrowe.com

In addition to hard / private money solutions, Winston Rowe & Associates offers the best in traditional financing programs. When you call them with a loan scenario, they quickly assess what type of financing is appropriate for your situation. Then utilize their direct access to the most aggressive investor sources in the world to create a customized financing solution for clients.

COMMERCIAL HARD MONEY HIGHLIGHTS:

No upfront or advance fees.
Commercial hard money loan amounts from $1,000,000 to $500,000,000.
Private or hard money funds available for a quick close in 2 to 3 weeks.
All property types considered including raw land.
Reasonable fees and interest rates.
1 day to three years financing.
Financing in all 50 states.

Winston Rowe & Associates understands that in this business very few funding requests will fit neatly in a box and therefore they always look forward to working with clients to identify a unique deal structure that can benefit from their hard money transactional financing programs.

They also have an excellent knowledge based free investor resource for commercial real estate investing, valuation and analysis located at:

Winston Rowe & Associates has no upfront fee hard money 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

Office Building Refinancing Guidelines No Upfront Fee Loans

Office building investors considering refinancing should look at Winston Rowe & Associates. They are a national office building finance consulting firm specializing in no upfront fee commercial real estate loans.

Winston Rowe & Associates has prepared this article to detail the major points of underwriting office building refinance transactions.

Owners conducting an office mortgage refinance have a broad range of finance options. This is due to several factors, such as loan amount, whether the property is owner occupied or an investment, single unit or multi tenant, strength of owner, etc. In addition there are several different types of office buildings (For example, office condo’s, Class a- c,) which further dictate loan options.

As far as underwriting is concerned, fundamentals are still critical; loan to value, debt coverage ratio, strength of tenant, credit worthiness of borrower, and property analysis come into play. Below is a brief discussion of each underwriting component and how it relates to office building loans.

Debt Service Coverage Ratio restrictions are typically set at 1.2 for both investors and owner occupants of office properties. Meaning that for every $1.20 of net income (income after taxes, insurance etc have been paid) the property/business produces, the mortgage payment will not exceed $1.00. Said in another way, after all expenses and the mortgage has been paid, the owner will need to net $.20 to qualify.

Exceptions can be made with this rule on office refinances. For example, on owner occupied transactions it is not uncommon for the lender to consider other source of income that the borrower has to replace low income that the business lacks. In addition, stated income loans (commercial loans that do not require business or personal tax returns) can be an outstanding option for owners that have low debt coverage ratios due to either overstated expenses, current high levels of vacancy, or understated (or lack of) income.

Loan to value restrictions on office building refinances are normally capped at 80% on a rate and term refinance and 75% loan to value on cash out refinances. Higher LTV’s are available, for example there are a few lenders that will go as high as 90% but this comes at a steep price for the borrower – raising rates by as much as 2-3%. On the flip side, lower loan to values will normally reduce interest rates for the borrower.

Tenant evaluation is not as important within the office property category as others (like single tenant NNN properties) but still important. Relevant information includes time left on leases and renewal options. Further on multiple unit properties lenders prefer the lease expirations to be staggered and most banks/ lenders want to see at least 3 years left on the current leases. Some traditional banks will not allow the fixed period of the loan to exceed the time left on leases.

The personal credit worthiness of the borrower will be scrutinized. 680 credit score is normally the minimum for the best finance options. Exceptions can be made on this as well with some conventional lenders considering scores as low as 600. The overall strength of the property, tenants, DSCR, and LTV can offset concerns on low credit scores. For corporations, business performance and credit rating will be evaluated.

Fundamentals of the building are critical. Market value and market rent is paramount and will be evaluated and compared to the subject property. Any negatives with the condition, appearance, location, accessibility, and local market conditions, as well as other factors will reduce options for the borrower.

Investors seeking office building financing should turn to Winston Rowe & Associates efficient, end-to-end commercial real estate financing solutions provides commercial mortgage capital to owners of all commercial property types. With flexibility and speed of execution, they are able to offer a broad range of financing capabilities. In most cases they can close your loan within 30 days.

Investing In Office Buildings Commercial Loans No Upfront Fees

Investing In Office Buildings

Winston Rowe & Associates is a national commercial finance consulting firm, specializing in office building financing with no upfront fees.

If you’re an active office building investor or considering office buildings as a future commercial real estate investment, this article details some of the financing options to be considered.

Financing for an office building depends on a number of different considerations that go beyond the ability of the borrower to pay back the loan. Some things that have to be considered are the loan to value and debt coverage ratio.

Typically, excluding SBA financing, an office building will need a loan to cover 80-90 percent of the purchase price, with the investor putting a 10-20 percent down payment on the building. Also, the debt coverage ratio should not be less than 1.2, which would require the borrower to generate a net cash flow that is 120 percent of the debt service amount.

Other factors need to be looked at with an office building commercial loan, including how many tenants have come into the building and left in the past ten or so years, and how many tenants are currently in a lease agreement, at that moment.

If most of the tenants are in their fourth year of a ten year lease, then it is possible, after looking at rollover and renewal scenarios, that the debt coverage ratio will not be enough for the borrower to pay off.

Location for the office building should be considered, as well as its design and workmanship. Physical factors, such as these, will affect whether businesses move into the area, and into that building.

Commercial lenders will look at the market-wide statistics of the building, including whether or not there is a high vacancy rate in the community, economic vitality of the area and the development activity.

For a good quality office building, the typical interest rate varies between 6.5 percent and 7.5 percent over a ten year term with a 25-30 year amortization period. Since office buildings are so dependent on the market, local economy, location and other characteristics, it can be difficult for a borrower to secure a commercial loan in softer markets.

If there is a high vacancy in the building, then financing most likely will not be approved. However, on that note, if the building has a good history of constant tenants, and is in a good location, then there is a good chance the loan will be approved by the commercial lender.

If you’re seeking office building financing, Winston Rowe & Associates efficient, end-to-end commercial real estate financing solutions provides commercial mortgage capital to owners of all commercial property types.

With flexibility and speed of execution, they are able to offer a broad range of financing capabilities. In most cases they can close your loan within 30 days.

No Upfront Fee Office Building Financing

Winston Rowe & Associates, a no upfront fee commercial real estate financing firm that specializes in the apartment building investments and general commercial real estate financing.

They are still seeing strong options on apartment building loans, in the $650,000 – $5,000,000 range.

This segment of the commercial mortgage industry is holding its own and doing a lot better in terms of programs, rates and underwriting flexibility than the typical owner occupied or commercial investment property loans.

With the improving apartment and multifamily market the five year, seven year, ten year and even 30 year fixed rate financing is extremely attractive for investors.  As a comparison, 5 year fixed is now, normally the longest you will now see on other investment property loans.  Amortization schedule also are aggressive normally at 30 years with a few programs to 35 and even 40 years.  Some are fully amortizing.   Loan to value restrictions are set at an aggressive 80% on purchases and 75% on refinances vs 60% – 65% loan to value on other investment property loans.

Winston Rowe & Associates is seeing more and more borrowers refinancing their existing floating or short term rates into a long fixed rate programs, even if the proposed effective rate is higher than their current program.  Many borrowers feel that inflation could be lurking around the corner and they want to secure relatively low rates now, in case they go up substantially in the future, when the economy finally turns around.

All in all apartment building loans are still viable.  Investors are finding some really interesting deals as well as capitalization rates have gone up pretty much in every market in the country.  Even major markets such as LA or New York have seen drops in asking prices.

Another component of this is that the general outlook for apartment building loans is strong as the government, via Freddie Mac or Fannie Mae back the apartment secondary market and will likely continue to provide the liquidity that many other markets are lacking.

If you’re seeking apartment or multifamily financing, Winston Rowe & Associates efficient, end-to-end commercial real estate financing solutions provides commercial mortgage capital to owners of all commercial property types.

With flexibility and speed of execution, they are able to offer a broad range of financing capabilities. In most cases they can close your loan within 30 days.

Office Building No Upfront Fees Commercial Loans

Office Building Financing No Upfront Fees

Winston Rowe & Associates specializes in office building and industrial park financing, they have the very best permanent loans, fast funded private money loans, equity and structured investments, with no upfront fees for due diligence or the processing of a clients commercial real estate transaction.

As a boutique commercial real estate consultant they provide mortgage banking services for office buildings throughout major metropolitan markets within the US.

They lend strictly on commercial property that is being utilized as an investment by the borrower, their minimum loan amount is $1 Million with no limit.

Winston Rowe & Associates has a streamlined process for evaluating office building transactions that enables them to offer commercial real estate financing solutions for the following situations:

Acquisition
Investment Purchase
Time Sensitive Close
Rehabilitation
Un-stabilized property
Unfinished construction
Bad Credit
Un-bankable property type
Foreclosure prevention
Chapter 11 / Debtor in Possession Exit Financing
Cash out (Case by case basis)
Bridge Finance
Hard Money Loans
Private Money Mortgages

Office Building Loans Financing In New York No Upfront Fees

Winston Rowe & Associates specializes in hotel and hospitality financing, they have the very best permanent loans, fast funded private money loans, equity and structured investments.

Winston Rowe & Associates is a boutique commercial real estate consultant, providing mortgage banking services for hotel and hospitality financing in the New York metropolitan market, with no upfront fees for due diligence or the processing of a clients commercial real estate transaction.

Why Use Winston Rowe & Associates:

No Upfront Fees
Hotel and hospitality loans from $1,000,000 to $100 million
They are honest and straight forward
Hotel loans is part of their core business
They are experts in hotel financing

Winston Rowe & Associates has some of the best service in the business.

San Diego Medical Office Building Loans No Upfront Fees

San Diego Medical Office Building 

Winston Rowe & Associates has commercial financing solutions for the purchase and refinance of medical facilities, clinics, or medical office buildings in the San Diego real estate market with no upfront fees for processing your loan request.

The Winston Rowe & Associates team has the experience necessary to navigate the complex process of medical building finance to ensure that clients get the best medical building loan for their business situation.

If you are a hospital or medical building owner, and monetization is on your goal, Winston Rowe & Associates can help you to maximize the value of your medical building while enhancing your tenant-hospital relationship.

Benefits, Of Winston Rowe & Associates Medical Building Financing:

No Upfront Fees
Nationwide
Loan amounts start at $1,000,000. with no limit
Low, long term fixed rates,
Terms from 5, 10 and even 25 years fixed
Purchase and refinance
All Medical Commercial Property Types Considered

As commercial financing professionals they provide customized medical building loan solutions for all types of investors, doctors and physicians nationwide.

Office Building Loans Nationwide No Upfront Fees

Winston Rowe & Associates specialize in office building and office complex loans over $1,000,000 with no limit.  They work with a variety of lenders nationwide who offer office building financing with competitive loan rates and terms.

No Upfront or Advance Fees
Office Building Financing from $2,000,000.
Up to 80% LTV
Office Building Financing for Purchases, Refinancing, Cash Outs.
Competitive Office Building Loan Rates and Terms
Nationwide

With Winston Rowe & Associates you can expect efficiency, flexibility and professionalism as they work to get you to the closing table fast, without upfront fees.

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

Office Building Loans

No Upfront Fee Office Building Loans

Winston Rowe & Associates specializes in office building and office complex loans over $2,000,000 with no limit.

With Winston Rowe & Associates you can expect efficiency, flexibility and professionalism as they work to get you to the closing table fast, without upfront fees.

The Winston Rowe & Associates Advantage

No Upfront or Advance Fees

Financing from $2,000,000

Industrial Parks, Office Buildings, Mixed Use

Up to 80% LTV

Financing for Purchases, Refinancing, Cash Outs

Competitive Office Building Loan Rates and Terms

Nationwide

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

Winston Rowe & Associates
248-246-2243
processing@winstonrowe.com

Office building, office park, and office complex financing 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