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In that order.

Be excited about new about new initiates that will increase your funding options, but don’t let your excitement cloud your judgment.

Remember, some things never change.

“Before opening a dialogue with a lender or financial intermediary, senior housing and healthcare borrowers should carefully evaluate their needs and the various types of funding options that may be available to them. But it’s rarely a good idea for borrowers to presume they understand the capital markets well enough to sort everything out on their own,” says our CEO, Jeff Davis.

In today’s market, borrowers may qualify for a variety of different products from short-term bridge loans to fixed-rate long term loans, he points out.

For example, Government-insured HUD loans are available for nursing homes and assisted living facilities, and Fannie Mae and Freddie Mac have programs for independent living and assisted living properties. Credit companies are now underwriting loans for assisted living and independent living properties, and banks, finance companies and brokerage companies are becoming more active across the board.

“Although the spigot is not as tight as it once was, lenders aren’t throwing caution to the wind. They still expect borrowers to demonstrate business acumen. And they expect them to be able to show their operations are either making money or have the potential to do so,” Davis said.

“Borrowers most typically need advice or direction when dealing with the process of gathering and presenting information about their business to prospective lenders. Usually, the type of loan they’ll qualify for will be dependent upon the performance and location of the property and the borrower’s financial strength,” he added.

Get advice from a funding expert.

Then proceed with your loan.

In that order.

If economists at the Federal Reserve Board have it right, a return to economic normalcy is not in the cards anytime soon.

In the Dickensian picture painted by the Fed, unemployment remains high but the odds of inflation ramping out of control are low. Both household and business spending have been increasing, but international spillover from the European debt crisis is causing further contraction in the U.S. capital market. Says Jeff Davis,

From the perspective of senior housing/healthcare owners and investors, it is the best of times because interest rates are near historic lows and drifting lower. But tight credit markets remain problematic. The Fed is suggesting that it could take another five to seven years for the economy to work its way back to what passed for normalcy not long ago.

In the meantime, senior housing/healthcare owners may be well advised to consider a long-term financial strategy that is both patient and opportunistic. Although opportunities for funding new construction are limited, refinancing an existing loan using the new HUD Lean product should make sense to a growing number senior housing/healthcare owners.

For example, for borrowers who can take advantage, interest rates on HUD 232 LEAN loans are near rock bottom after drifting steadily lower in recent weeks.

HUD rates tend to move up and down based on developments in the U.S. government bond market. And rates on 10-year Treasury notes have been moving steadily lower, from 3.76 percent in April to 3.03 percent by mid-July, as investors forsook volatility in the stock market.

Fred Tannenbaum recalls watching Jeffrey Davis walk away from more than one deal because it couldn’t be made to work for all involved parties.

“For Cambridge, it’s an integrity issue. The deal that doesn’t produce a favorable or desired outcome for everyone is not worth doing,” Fred observed.

Mr. Tannenbaum is one of five managing partners at the prestigious Gould & Ratner law firm in Chicago. The 50-member firm serves as legal and business advisors to entrepreneurs and to closely held family-owned, middle market and Fortune 500 companies.

The Illinois Venture Capital Association describes him as a leading expert on private equity and venture capital, and he is a well-established authority on mergers and acquisitions as well. During his 20-year career at Gould & Ratner, Mr. Tannenbaum has represented clients in more than 500 mergers, acquisitions, divestitures and strategic alliance transactions and has been involved in more than 250 venture capital transactions as well. He says his professional association with Cambridge dates back more than 10 years.

“Over the years, Cambridge has emerged as one of the most knowledgeable and uniquely positioned companies in America dealing with senior assisted living. Among the niche companies serving this broad and growing demographic Cambridge is without peer,” he believes.

“Jeff routinely bounces ideas off me and we look at investments together. His knowledge and understanding of the business, from every conceivable angle, is impressive. And the company’s wealth and breath of industry contacts is overwhelming,” he maintains.

Mr. Tannenbaum describes Cambridge as an accessible, “hands on” company. Bureaucratic posturing is not part of the company’s corporate culture.

“You get to the top rather quickly. And indecisiveness isn’t something you’re likely to encounter when you get there,” he noted.

“Cambridge knows exactly what it wants and expects to see in a deal. No effort is made to force things.  If specific criteria isn‘t met for whatever reason, the company will move on — no matter how much time has been invested in the deal,” he said.

Have you ever walked away from a deal?  What helped you make the decision?

Searching for answers to your finance questions? You’ve come to the right place. We want to answer those questions: any question about finance, senior housing, mortgage lending, or whatever else you can think of. We’re offering free, no-strings-attached 30-minute consultations to our blog readers.

There’s just one catch: first, you have to go on a scavenger hunt.

Here are the rules:

1)      Read the questions posted below.

2)      Answer the questions by reading our summer blog posts (June 1-August 6)

3)      Submit your answers to ew@cambridgecap.com

4)      If you get at least 4 out of 5 answers right, we’ll contact you to set up your 30-minute consultation.

The Questions:

1)      Name three tips for financing in a tight market.

2)      How long should it take to process a conventional HUD loan?

3)      What is the projected rate of inflation, according to Dr. Charles Evans?

4)      Name one of the three steps to start your financing search.

5)      How many people attended our summer party?

Submit your answers to ew@cambridgecap.com by September 21, and we’ll set up your meeting!

We are excited to announce that recent college graduates and former Cambridge interns Ashley Bauers and Agnes Gruba have been hired for entry-level positions in the financial services industry.

Brent Holman-Gomez, senior vice president, says, “It is particularly remarkable in the present job market that both were able to start jobs immediately following graduation. We’re very proud of them.”

Ashley, DePaul graduate, completed a 14 month internship at Cambridge and was promoted by the company to Senior Associate. She joined Discover Financial Services, in the firm’s operations leadership program.

Agnes, a graduate of the University of Illinois-Chicago, was in the intern program for eight months and now is employed by Bank Leumi as a credit analyst.

Our intern program is designed to provide an opportunity for students to apply knowledge learned in the classroom in a professional environment. Over the years, Cambridge has employed more than 30 paid interns from DePaul, Loyola University, UIC and Roosevelt University, as well as other schools.

“Our corporate culture embraces the idea that student interns expect to be challenged and are capable of making worthwhile contributions to the business,” Brent said.

Four former Cambridge interns have senior positions with the firm today. In this group are senior vice-president Brent Holman-Gomez, senior vice president Sampada d’Silva, vice president Anthony Marino, and Loan Manager Katie Trice. These four employees play key roles in guiding the internship program, and  their experience means that they take the time  to mentor and teach student participants.

Interested in learning more about the program? Students can submit a resume hrdept@cambridgecap.com.

Did you have an internship before you began your full-time career? How did it help you? What did you learn?

We closed six transactions totaling $40.4 million during the first half of 2010. Jeff Davis, our President and CEO, reports that activity totals should be even more robust in the third quarter:

Given the economic challenges, we’re very pleased with the way the year is shaping up. Based on loans currently being processed, it now appears that third quarter closings alone could exceed totals for the first six months of the year. With interest rates at current low levels, borrowers are reconsidering the economics of their current situation and giving more serious thought to the refinance option.

Have the low interest rates caused you to consider refinancing, or do you plan to wait until an economic turn-around?

When you think of long-term relationships, you think commitment, trust, understanding, HUD LEAN programs…Oh no?

Maybe you should.

A long-term relationship with a lender brings you the same kind of commitment, trust, and understanding that you look for in other relationships, but this time, the rewards are financial.

For example: a solid relationship with a lender can mean you can move ahead on a property acquisition without worrying about where the money is coming from. You’re better positioned to predict your lender’s behavior, and you’ll be able to take ownership of the funding program.

Try thinking of your next loan as a first date. Look for the qualities you’d want in a long-term partner. Does the lender deliver on their promises? Do they inspire confidence? Did they set realistic time frames?

If these questions aren’t answered quickly and satisfactorily, it’s time to start looking for a new potential partner.

In a perfect world, a lender would be able to fund any type of transaction, but in reality, this doesn’t often happen. Put together a list of the types of transactions that you’re likely to consider in the future. Compare possible lender partners to this list. If they can’t measure up to your standards, they aren’t worth your time.

Look for a lender that you can see yourself spending many years with. Financial relationships are the kind that get better with age.

We’re constantly trying to improve our relationships with borrowers, and always looking for new ways to build that trust and understanding. What are you looking for in a long-term lending partner?