It's a good strategy to look at financing options long before the loan is due, according to Cambridge Realty Capital managing director Tony Marino.
“Many traditional lenders are choosing not to offer extensions, putting borrowers in a crunch to find timely alternatives,” he wrote Wednesday in a blog post.
In today's market, it's foolish to expect a lender to continue working with a borrower past the due date, even if the borrower has had a good relationship with the lender in the past, Marino said. He added that borrowers may find themselves looking for new financing options quickly.
“The problem with this situation is that it forces the borrower to make a decision based on how quickly the new lender can close, rather than what option is best for the facility and meets all of the borrower’s objectives,” Marino said.
He said it's not too early to start shopping, noting that borrowers should know their options and look for a suitable lender.
“Borrowers often only look at their existing financing when their current lender tells them their due date is approaching,” the expert said.
Keep an eye on the due date, and don't expect the lender to automatically notify you when the date is approaching, Marino said, adding that it would be a mistake to assume the lender will give the borrower a year's notice of an amount due. Next due date.
“Beginning the process of evaluating current financing and what future financing options are available should start yesterday! The more time the borrower allows to make this decision, the more options are available to achieve the desired outcome.
Marino advised borrowers to look for lenders who understand the senior living industry and are familiar with the needs of operators.
“Access to capital is still there, but it depends on a lot of variables and funds that need to be checked,” Sarah Duggan, senior housing group director at Cenovus, said Tuesday, in an unrelated webinar hosted by the National Investment Center. For housing and care for the elderly. Synovus is a $60 billion regional bank headquartered in Columbus, Georgia.
