PulsePoints

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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.