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Refinancing
Interest rates are at a forty year low. Refinancing
existing real estate loans can reduce both the interest rate you are paying and
improve your cash flow by lengthening the amortization of the loan.
Equipment loans and leases can be included in the new loan and may make sense
despite a prepayment penalty on a lease. Ken Paton has lenders who are
willing to consider long-term fixed rate financing for bowling centers with "A"
credit. Other programs are available for those with high loan to values or
less than perfect personal credit.
This 12 lane center had been purchased by the manager
from the former owner several years before. New scoring
had been added, but the owner was unwilling to invest in
real estate upgrades until he "really owned" the real
estate. The new loan refinanced the existing debt and
the scoring lease with a lower interest rate and
payments that were several thousand dollars per month
less than before. |
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