12A — November 13 - 26, 2015 — Financial Digest — M id A tlantic
Real Estate Journal
www.marejournal.com
F inancial D igest
By Kevin Meehan, Atlas Commercial Capital, Inc. Reap low rate financing benefits now!
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f history is any indicator, we may not see rates this low again for a long time.
investors should be in good shape with pending purchase transactions at least through the end of the first quarter. This is due to the increased under- writing standards put forth as mentioned above. Having so many lender af- filiations allows Atlas to con- sistently deliver better and quicker results. We are able to get competing quotes which equates to better terms for our clients. Another great benefit we provide is our pre-underwriting reviews . Our review is based both on the subject property and on the borrower(s). We provide
this service directly to borrow- ers as well as to the real estate brokerage community. This pre-check benefits borrowers since they will know upfront an approximate underwriting out- come before spending money on due-diligence costs or on loan application fees. This pre- screening has been popular and very beneficial to our real estate broker referral sources since they know whether a potential offer is from a qualified buyer . With this service, the due-diligence becomes focused on the asset and naturally, closings can and do occur quicker.
Atlas closes deals nationwide with strong loan closings in the Southeast and Mid-Atlantic regions. We have no loan limits and will entertain even small transactions . While a majority of our busi- ness is conventional low rate first mortgages, we also have programs for properties in transition (bridge loans) and even low document loans de- signed for the new investor. As 2015 draws to a close, now is the time to lock-in these low rates on stabilized assets. For loans maturing in 2016, it is never too early to get started especially since some of our lender partners are also offering forward rate locks up to 12 months. It is always in your best interest to work with Atlas when speed, ac- curacy, relationships, trust and getting great financing terms matter. As managing partner of Atlas Commercial Capital, Kevin Meehan has per- sonally closed loans in 40 states and financed all types of commercial real estate assets. n used in the exchange. This is boot, plain and simple. That result could be avoided by having the seller deposit the prorated rents into escrow before the closing. The same rationale applies to other pro- rated items credited to buyer at closing in the purchase and sale agreement, such as a buyer credit for repairs. In the latter case, a seller may prefer to reduce the purchase price for the property to reflect the cost of the repair (but such a reductionmight interfere with the buyer’s financing). The characterization of closing costs, exchange expenses and prorations in a tax deferred exchange is an area that can be complex and is generally not well understood by real estate investors. A pre-closing analysis of these items by a qualified tax professional will often turn up potential boot items that can be avoided with proper planning. The goal for some, of course, is to obtain complete tax deferral. Pamela Michaels is an attorney and vice presi- dent of Asset Preservation, Inc . n continued from page 4A What to do about expenses in a §1031 Exchange?
with over 700 of the nation’s top lenders . Many of these institution’s loan officers have expressed that their underwrit- ers have already started to use higher underwriting cap rates and debt yields. Since financing commercial real estate is typi- cally a 3-5-7 or 10 year balloon, lenders are looking at today’s cash flow and also have to con- sider the refinancing potential when these terms come due. As we move forward into 2016 closings, I believe that any rate increases will be gradual rather than fast moving like we expe- rienced in the 1980s. Providing the increases are gradual, most
In fact, the last time com- mercial prop- e r t y r a t e s were this low was in the 1 9 6 0 s . A s we wind-up 2015, there is much specu-
Kevin Meehan
lation about how fast rates will increase in the coming year and how lenders will be adjusting underwriting cash flow. At At las , we f inance transactions nationwide
Offering over 100 commercial real estate loan programs from our most trusted lenders
Investor and Owner-occupied Properties Pre-application property and borrower reviews Close in as little as 30-45 days Catch the low rate wave now First Mortgages, Bridge Loans and even Construction Property Types - Closed Nationwide Apartments • Office • Retail • Warehouse • Hotels • Self-Storage • MHPs Senior Care • Hospitals • Medical Buildings • Single-occupant • Mixed-use
To achieve better and quicker results than going direct or through any other source, contact us today!
Kevin@AtlasCommercialCapital.com
2840 Plaza Place, Suite 102 Raleigh, NC 27612 P: 919-846-2276
45 Rockefeller Plaza, 20th Floor New York, NY 10111 P: 212-332-3457
www.AtlasCommercialCapital.com
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