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Show f r f THE MAGNA T1M1S, July 14, 2005 V EST ALLEY NEW S, KEARNS 1()S 7 1 Business lime cost of loans work well for multifacility owners HUD Because HUD loans are structured to underwrite only one property at a time on an asset by asset basis, multi property owners of senfacilities ior housinghealthcare sometimes get the idea that this attractive source of funding solely addresses the needs of smaller property owners. "Nothing could be further from the truth," says funding expert Jeffrey A. Davis. HUD financObtaining low-co- st have much as can or even more ing to appeal larger multifacility owners who stand to realize even greater savings because, for them, the stakes are higher. Davis, chairman of Cambridge ed HUD funding packages come together more easily than some might think. In about the same amount of time it takes to put togethloam er a "Rather than having multiple sets of discussions regarding interest rates, loan terms, loan covenants, amortization, appraisals and so forth only one conversation takes place. Also, rather than having the accounting office write out multiple checks to multiple lenders, only one check is written, he said. Davis says borrowers like the idea that the multifacility loan packages are inherently flexible. Even though only one loan is made, the borrower has the ability to pay off loans for individual properties in the package on an individual basis. As another example of flexibility, the Cambridge chairman points out that multifacility borrowers sometimes choose to put a bridge loan in place with a goal of obtaining HUD financing six to 18 months later. A bridge loan can be used to pay off existing bank debt of a'l kinds, and transactionincluding facility-base- d al-based debt. Or it may enable borrowers to funnel money into operations as opposed to being used exclusively to repay real estate debt. If justified by performance, the bridge loan can allow cash out for working capital. Or it can be used to single-proper- -- facilitate refinancing through HUD, Davis said. It frequently happens that interest rates on portfolios have gotten too large -- - or high. The bridge financing can consolidate these interest rates into one manageable lower cost rate," he added. Cash generated from the bridge loan can facilitate the sale of assets or even the sale of the company to a partner, he said. Davis stresses that it is "critically important" to work with an experienced HUD lender in setting up a bridge loan if the goal is to obtain HUD financing later on. Realty Capital Companies, says that with an experienced lender in the picture, multifacility HUD-approv- SALT LAKE CITY The overall cost of living along the Wasatch Front rose 0.2 percent during June due to changes in just three price categories, according to the Wells Fargo Wasatch Front area Cost of Living Report. "The pattern of cost changes, centered in three categories, continued along the Wasatch Front area cost of living during June," said Kelly K. Matthews, Wells Fargo executive vice president and economist. "After a respite in May and June, gasoline prices have since gone back up, and hopes now are that crude-o- il costs won't venture much past the level in months. Even if coming that hope is realized, the higher expenses nevertheless will still continue to impact consumers' pocketbooks." The June Wasatch Front area Cost of Living Index 1988 100) (March increased to 157.3 compared to 167.1 calculated nationwide from the same ty generate cash to reduce working capital loans. "The owneroperator may have numerous loans with numerous lenders in place. The bridge loan concept allow s for one loan with one lender and for individual releases to "Many times unsophisticated owners think they're creating a bridge loan that will lead to HUD funding but unsuspectingly leave out important terms and conditions that are important to the federal agency, such as appropriate allocations or generating the individual releases needed to complete the HUD refinance package, he said. According to Davis, HUD offers funding programs for virtually every senior housinghealthcare category. The features, advantages and benefits of these programs have been well documented. "The rewards for patient borrowers who qualify for HUD funding are lower rates plus superior terms and conditions," he said. In the current market, interest rates on HUD loans range between 5.0 percent and 5.5 percent with a .50 percent MIP. Conventional lenders typically offer LIBOR plus 3.0 to 6.0 percent floating, or 6.5 to 9.0 percent fixed. There are other favorable comparisons. HUD programs offer borrowers a fully amortized loan for new construction, major expanterm sion or rehab and a el refined-produc- ts base month. From January to June 2005, the overall local cost of liv ing gained 1.7 percent compared to the same year-ag- o period down from August's peak 3.1 percent annual gain but up from May's annual rise of 1 .6 percent. The national cost of living on a adjusted basis increased 0.1 June, during percent according to data reported today by the U.S. Bureau of Labor Statistics. The total percentage change is based on a weighted average of major spending categories, the weights determined by the spending patterns of a typical family budget. Wasatch Front transportation prices fell again in June by 0.5 percent following a 1.1 percent drop in May - both declines due to lower costs at the gasoline pump. The local cost of transportation during the last six months has been up 5.0 percent compared with the same six months last year. National transportation prices declined 0.2 per -- -- ly -- National For HUD loans the ratio is 90 percent for new construction and 85 percent for refinancing and acquisitions. Also, when refinancing, HUD borrowers may qualify for up to 100 percent loan to cost funding. For conventional loans a 75 ration may be percent available but more typically the ratio is 65 to 70 loan-to-val- loan-to-val- ue loan-to-val- Business Directory e-m- ail place your advertising , 250565 excess equipment that Contact 8545 W. 2700 S. Honest Mechanics Providing Hassle Free Repair at Affordable Prices Curt Stewart - OwnerManager Lowell Stewart - Owner Ron Ferrin - Head Technician I AT & Arthritis LITTLE OR NO COST! Supplies FOR INFORMATION CALL EASY ACCESS MEDICAL SUPPLY Accel-A-Write- SALE-- .. tS? 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Info: RAM. www xante.comsupportaw3g www colortrac.comevolution htm Xante I IF YOU HAVE MEDICARE OR PRIVATE INSURANCE, YOU MAY BE ELIGIBLE TO RECEIVE YOUR DIABETIC SUPPLIES Kirk: 1 DIABET OCS! call we will sacrifice for an excellent price. or upautahpress.com --tJFOIK Magna "J to magwestxmission.com I'tah Press Association MAY er (wells-fargo.com- 10-ye- ar We have CERTAIN RESTRICTIONS year-earli- rd refinancing. or We also carry Impotence across-the-boa- Wasatch Front To ' food-at-hom- ments were unchanged in June (housing, health care, food away from home, utilities, education &l communication, recreation, and other goods & serv ices). Wells Fargo prov ides the Cost of Living Report as a free benefit to the communities it serves. Price data for the Wells Fargo Wasatch Front area Cost of Living Report are produced by an independent research firm. Wells Fargo & Company is a diversified financial services company w ith $436 billion in assets, provide banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6.000 stores, the Internet and other distribution channels across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, "Aaa," from Moody's Investors Service. Typically, conventional loans offer terms that are amortized over periods of 20 to 25 years with J 21 cent for the month. Grocery expenses along the Wasatch Front reversed direction in June, slipping 0.2 percent. Price decreases for produce more than offset increases for meats and alcoholic beverages. Cereals, dairy, fats, sugars, miscellaneous foods and other beverages remained Compared unchanged. with the same period a year e ago, local 1.4 costs went up percent over the past six months. Grocery bills nationwide fell 0.5 percent in June. For the month of June, local clothing expenses jumped sharply, rising 7.5 percent, with higher price tags for men's, reported women's and children's apparel. The local cost of clothing over the past six months, however, was still 4.0 percent below the same period. June clothing prices across the country dropped 3.3 percent. All of the remaining Wasatch Front price seg- - nap 35-ye- ar for amortization 0 250-77- ms QnvBim SUBJECT TO PRIOR SALE Ask about delivery!!! Ask WILL CALL LEHi. UT about custom colors left lengths! Ask About MirrAi fnSrf" 181 South 1200 East & ExjTm 7U cf Stare Hcxrc metGlmsrt.biz 5 peifveryV C Mf 7 5 SaT&X-- wfccn-umuiA- Come into the Magna Times For all of your copy and printing needs L 8980 W. 2700 S. Magna - 250-56- 56 ), |