Frequently Asked Questions
- Is there still
commercial financing available in this
tight-credit environment?
Absolutely! Wincreek uses private
sources of capital such as hedge funds,
private equity groups and small
commercial banks to fund its financing
of borrowers’ projects. Unlike the
banking sector which has effectively
ceased lending, Wincreek is still
providing commercial loans for worthy
properties and projects.
- Can someone with poor
credit still borrow money for a commercial
transaction?
Absolutely! Those will less than perfect
credit who have a sizable equity in
their properties can still qualify for
Wincreek’s equity-based financing
programs readily available throughout
the country.
- What is hard-money,
or "equity-based " lending?
“Hard-Money” or “Equity-Based” or
“Portfolio” loans are short-term
commercial loans made to borrowers who
typically have sizable equity in their
properties and require financing not
typically offered by main stream banks.
Borrowers with less than perfect credit
or those with time-sensitive
opportunities may wish to utilize an
equity-based loan which typically will
carry a higher interest rate and cost
with a shorter term than a typical bank
loan. Borrowers should know that
Wincreek and its funding partners limit
their maximum loan amount to no more
than 65% of the confirmed market value
of the underlying property.
- If an opportunity
arises to acquire a distressed property but
closing is required within 2 to 4 weeks, can
Wincreek assist?
YES; a Hard-Money or an Equity-Based
loan can be provided to the borrower to
acquire the property for a short period
of time allowing the borrower to
capitalize on its unique opportunity.
Borrower will then be able to refinance
the transaction using Wincreek’s
conventional financing programs.
- How does the
financing process work with Wincreek?First
step is to fill out the Wincreek Commercial
Application and submit it for an immediate
pre-qualification. One application is needed
for each loan request. Once the application
is pre-qualified, Wincreek contacts the
borrower and provides the borrower with its
questions, documents needed and a range of
terms most likely applicable to the project
submitted.
- Can an LLC or a
company borrow money?
Absolutely! Any corporate entity can be
the borrower in a financing transaction.
- Is there hard-money
or equity-based lending available for those
who can’t qualify for a traditional home
mortgage for their primary residence?
Yes; Wincreek can provide qualified
borrowers with sizable equity in their
primary residences access to short-term
private funding to replace a traditional
mortgage. It is usually expected that
such loans be refinanced into a
traditional mortgage within 24 months.
- Does Wincreek provide
its financing services nationwide?
Yes; most of Wincreek’s programs and
funding sources lend throughout the
country. There are a handful of programs
that may be restricted to a certain
region of the country.
- Is lending available
without personal guarantees?
Yes. Depending on the strength of the
loan and the transaction being financed,
Wincreek may not require the principals
to provide full recourse or personal
guarantees.
- Why some property
types are easier to finance than others?
There is a rule of thumb with all
commercial lenders, namely, the more
limited the use of a property, the more
difficult it is to finance it. For
example, a gas station can only be used
as a gas station, so such a collateral
has limited use. An office building or
an apartment project on the other hand,
can be rented to many different kinds of
tenants and therefore have more diverse
use and are easier to finance. Most
lenders categorize properties in one of
4 tiers. A tier-4 property will be more
difficult to finance than a tier-1
property.
- When buying a
business which has real estate, can I borrow
funds to pay for the entire transaction?
When one looks to purchase a business
with its underlying asset, the purchaser
and seller must break up the purchase
price into two parts: (1) the business
related portion, and (2) the real estate
portion. Wincreek and its funding
partners would be eligible to finance
the real estate portion of the
transaction only. It should be noted
that the value allocated to the real
estate portion of any business
acquisition must pass the scrutiny of an
MAI commercial real estate appraiser.
- Is Wincreek a lender
or a broker?
Wincreek may play one of several roles
depending on the transaction. In some,
Wincreek may be the lender using its own
funds; in others, Wincreek may take on the
role of a correspondent lender, using funds
of its funding partners and lastly, in some
transactions, Wincreek may broker the
transaction to its funding partners and
assist in the underwriting of the
transaction.
- How long does it
take to obtain a commercial loan?
Borrowers should plan on a typical
commercial transaction to take between
60 to 90 days to complete from the time
all documents have been received by
Wincreek and borrower has been issued
one or more term sheets.
- What is the
advantage of using Wincreek vs. using our
local bank?
One can go to a bank and get the bank’s
best offer or one can come to Wincreek
and get several loan options to choose
from. Wincreek’s many funding partners
may be able to provide a borrower with
multiple terms so that the borrower is
able to choose the one most suitable.
Wincreek also can assist borrowers with
“structuring” their transactions to meet
the requirements of its lending
partners, thereby increasing the chances
of a successful funding.
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