Expert Says Operation Knowledge Critical for Senior Housing and Healthcare Borrowers In the information age, senior housing/healthcare lenders typically expect borrowers to be knowledgeable experts when it comes to describing the operational particulars of their business
RISMEDIA, August 1, 2006—In the information age, senior housing/healthcare lenders typically expect borrowers to be knowledgeable experts when it comes to describing the operational particulars of their business. That’s not surprising.
But borrowers are sometimes surprised when they learn how forthcoming their lender expects them to be, says funding expert Jeffrey A. Davis.
It’s not uncommon for lenders to take the position that any question they might have regarding the operation of a business is a legitimate question. The more the borrower knows and is able to articulate, the better his or her chances are of making a favorable impression and obtaining a loan with the most desirable terms and conditions, he said.
Davis is Chairman of Cambridge Realty Capital Companies, one of the nation’s leading senior housing/healthcare lenders with more than $1.75 billion in 275 closed transactions since the mid-1990s. He points out that capital market sources are more discerning in today’s investment climate.
“For competitive reasons, borrowers may be reluctant to divulge certain types of financial information to lenders. However, withholding pertinent information really isn’t an option. Important to any relationship between borrower and lender is the understanding that information shared will be held in the strictest confidence. Before choosing to work with any lender it’s important to make certain that trust and confidence are part of the equation,” he said.
Some of the more perplexing questions for borrowers deal with occupancy and lease-up projections, expense management and costs, and issues related to timing. As information is gathered, deficiencies are most likely to turn up in these areas, Davis points out.
“There are questions the lender must ask to make more intelligent lending decisions. Largely, it’s a matter of anticipating what the lender’s needs might be and organizing information in a format that will help facilitate the process,” he noted.
To assist borrowers, Cambridge has created a checklist that can be used by borrowers to organize information in a format that will help facilitate the process. It can be accessed from the Owners, Operators & Managers section of the Cambridge website. For a copy
CLICK HERE.
Privately owned since its founding in 1983 as a real estate investment banker specializing in commercial real estate properties, Cambridge emerged in the 1990s as one of the nation’s leading senior housing and healthcare debt and equity capital providers, closing more than 275 such transactions totaling more than $1.75 billion.
The company is one of the nation’s leading HUD 232 FHA / MAP-approved lenders and also has an integrated debt / equity financing strategy that includes direct property acquisitions and joint ventures; sale / lease-backs for clients; conventional and mezzanine debt financing; and acquisition of distressed debt. Additionally, Cambridge is the sole correspondent specializing in senior housing for American Property Financing, Inc., a Fannie Mae DUS lender, and offers a wide array of conventional lending options for senior housing / healthcare owners, including permanent construction and interim loans on either a floating or variable rate basis.
For more information, visit www.cambridgecap.com. For additional information, contact Cambridge at (312) 357-1601 or via e-mail at info@cambridgecap.com. |
