Getting Deals Done!

Getting a deal done can be tough sometimes, especially if that deal is an Acquisition and Development deal. The transactions are often referred to as A&D funded loans.

So what is an A&D loan? It can be a traditional conventional style commercial loan, a hard money/private money style loan or anything in between. You'll ofter hear terms like Mezzanine or Carry-Over loans used.

These loans typically provide the money to purchase and repair a property. In many cases the property will be purchased with cash and the A&D (at this point it is then referred to as a Mezzanine loan) will be used to pull cash to rehab the project.

Many investors are having a hard time finding the money to purchase existing buildings right now. That's because the CMBS (Commercial Mortgage Backed Securities) market has all but dried up.

But! The A&D money is starting to creep back in. While owner are hawking their half occupied, fully depreciated properties at laughable cap rates, vacant bank-owned properties sit just waiting for someone to swoop in and buy them for as little as 25 cents on the dollar.

If your strategy is to buy and hold and you already have 5 or more residential properties then switching to a small apartment building or a small office building might be a good choice. Using an A&D loan to fund your new projects might be the way to get your business moving.

Changing to commercial deals even though there are tons of residential deals available might be the only way to get many peoples investing business back on track and growing. Make the decision to move to commercial and create a Cash Flow Monster, the you'll start to get deals done!

Michael Gross is the President of Dividend America Mortgage and has been in real estate for over 20 years. He has been a builder, a Realtor, an appraiser, and currently he is a lender and an active real estate investor. He uses all of his experience and knowledge to show individuals how to properly use a mortgage as a tool to help create greater wealth through real estate investing. For more information on residential and small commercial loans please call 770-350-7373 or email mgross@dividendamerica.com