Winston Rowe & Associates, a no advance fee commercial real estate finance and due diligence firm. Savvy commercial real estate owners have been turning to them because of their service, integrity and competitive rate and terms.
You may have many reasons for refinancing a commercial mortgage, from avoiding an upcoming balloon payment to lowering your long-term interest rate. But troubles in the commercial real estate sector mean the landscape has changed for businesses that want to work with lenders.
1 What do you Need a New Loan:
Consider carefully why you want to refinance. If you need money in hand for repairs or improvements, you may be seeking a cash-out product. If your current loan product has an adjustable rate, which makes month-to-month cash flow projections much more difficult, you will probably want to investigate a fixed-rate loan. If you have a balloon payment coming due, you will want to refinance into a new loan to avoid that liability.
Knowing what your long-term business goal is will guide you as you choose a loan product and even decide whether refinancing is cost effective or possible.
2 Supporting Documentation:
Prepare all of the documents the lender will need to assess your business. These will include tax returns, balance sheets, profit and loss statements, and a projected cash flow for the project you want to refinance. Many mortgage lenders will require a well-thought-out business plan.
3 The Value of the Property:
Be aware of the current valuation of the property you want to refinance. Especially in the current climate, the property’s value may have changed significantly since the original mortgage funding. This will change your loan-to-value calculation, or LTV, and may even mean you have to come up with additional equity in order to qualify for a refinanced loan.
4 Can You Make The Monthly Mortgage Payments:
Use a debt service calculator tool to make realistic projections of whether your monthly income on the property will cover the mortgage payments for any particular loan product.
5 Personal Credit History:
Consider how your credit may affect the transaction and talk this over with your prospective lender. Bad credit will restrict your options, and can often mean a higher interest rate, but it is still possible to obtain refinancing with less-than-perfect credit. Another vehicle that lenders often use with clients with bad credit is a balloon payment mortgage.
These can prove worth considering, but you should exercise extreme caution, as you are probably committing yourself to another refinance in the near term, with all the associated costs.
6 Advance Fees for Due Diligence & Loan Processing:
Winston Rowe & Associates does things differently, they never charge upfront or advance fees, so find out all the upfront costs of any loan you are considering. They may include appraisal fees, title insurance, environmental reports and lender processing fees–often running into thousands of dollars.
Here is where is it worth considering whether to go with a deal from your current lender, which may lower some of the third-party fees, or whether a competing lender is willing to offer you a deal on its own fees in order to win your business.
You should learn how much of these costs you can roll into the loan amount, and how much you will have to pay out-of-pocket.
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.
Winston Rowe & Associates provides no upfront 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