Questions & Answers
Is there still commercial financing available in this tight-credit environment?
Absolutely! Wincreek's private capital sources continue to provide funds for commercial real estate mortgages. Unlike banks which have all but ceased making loans, Wincreek provides conventional and bridge loans to borrowers nationwide.
Can someone with less than perfect credit qualify for commercial financing?
Absolutely! Those with less than perfect credit who have sizable equity in their properties may qualify for Wincreek's bridge financing programs nationwide.
If my property is “upside-down” can Wincreek still assist me?
Absolutely! If your property is worth less or the same as your current mortgage balance, Wincreek will work with your existing mortgage holder to negotiate conditions suitable for refinancing your existing loan and thereby protecting your property from foreclosure or bankruptcy.
What is hard-money or equity-based financing?
Bridge loans are often referred to as hard-money, equity-based or even portfolio loans. These loans are provided to those borrowers who have sizable equity in their properties and have a short term need. Those with time-sensitive transactions or those with less than perfect credit may qualify for bridge loans which carry higher rates than conventional commercial loans with terms from 3 to 24 months.
If an opportunity arises to acquire a distressed property but closing is required within 2 to 4 weeks, can Wincreek assist?
Absolutely! Wincreek's bridge loan programs are the perfect vehicles for such financing scenarios. Once the transaction is funded using bridge capital, borrower then has ample time to refinance the transaction using less costly conventional commercial financing programs offered by Wincreek nationwide.
What is Wincreek's financing process?
The first step is to complete Wincreek's commercial financing application and submit it to be pre-qualified. One the transaction is pre-qualified, Wincreek provides borrower with a list of questions as well as supporting documents. Wincreek then completes a pre-underwriting step which may take a handful of days before issuing its term sheet to the borrower. Click here to see our process in detail.
Can an LLC or a company qualify for financing?
Absolutely! Any corporate entity including those deemed as non-profit entities can qualify for any of Wincreek's commercial real estate financing programs.
Is there bridge financing available to those who can’t qualify for a home mortgage for their primary residence?
No; Wincreek can only finance commercial properties.
Does Wincreek provide financing nationwide?
Yes; almost all of Wincreek's financing programs apply to commercial properties nationwide.
Is commercial financing available without personal guarantees?
Depending on the strength of the transaction or the transaction type such as financing for a non-profit organization, Wincreek may not require principals’ personal guarantees. In some instances Wincreek may only require limited personal guarantees with standard carve outs.
Why are some properties easier to finance than others?
When it comes to commercial financing the property type can determine how easily it can be financed. All properties are typically divided into 4 “tiers”, tier-1, tier-2, tier-3 and tier-4. Tier-1 properties are relatively easier to finance than tier-4 properties. The more potential uses a property has, the lower its tier ranking which allows for more readily available financing programs. Properties with very unique uses typically are ranked as tier-4 properties and therefore are eligible for fewer financing options.
When buying a business which includes real estate, can I borrow funds for the entire transaction?
Wincreek and its capital sources can only finance the real estate portion of any business transaction. The value allocated to the real estate portion of a business acquisition must be supported by 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 the Washington DC metro, Wincreek is a direct lender using its own funds to make loans. In other areas, Wincreek is a correspondent lender to its funding partners and lastly, in some transactions, Wincreek may assist its funding partners with the underwriting of the transaction.
How long does it take to obtain a commercial loan?
The more complex the transaction, the more time it may take to underwrite and fund it. However, most transactions will require 60 to 120 days to underwrite and fund from the time all documents have been provided to Wincreek and borrower has accepted Wincreek’s financing term sheet.