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WHAT IS THE REAL COST OF BORROWING? By
Darlys Walker
Published
October 21, 2015
Let’s
face it, lenders and banks are in the business of making money. They
do this, by charging fees to loan money. Lately we have seen a big
upswing in the number of Associations borrowing large sums of money
to address major projects that had previously been put on hold due
to the failing economy and housing market. Interest rates are at an
all-time low, so borrowing money is relatively cheap! Or is it? The
truth is, most banks, while charging competitive interest rates,
have additional fees that apply. For example, one bank in Florida
recently charged an Association a loan origination fee of 5% of the
loan amount. Borrowing $1,000,000 the loan origination fee was
$50,000. On top of that, the Association paid $7,000 in closing
costs. If your Association is looking for a bank loan, do your
homework. Make sure you fully understand what, if any, additional
fees apply and know that you can negotiate these fees. An example of
this is, another property borrowed $1,200,00 and negotiated their
loan origination fee to $6,000 (saving $44,000) and closing costs at
$3,000 (saving $4,000). Many Boards seem afraid if they don’t just
agree to the terms initially offered, that they won’t be approved
for the loan. Trust me, the bank won’t turn you down if you
renegotiate, they may not meet your terms, but there are a number of
banks out there who are willing to work with you!
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Darlys
Walker, Founder and CEO of Condominium Concepts
Management, Inc. (CCM), is recognized for her straight
talk, subject matter expertise, and valued insights
regarding real
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state
management, leasing, and HOAs. Her company serves a diverse
portfolio of properties, from 16-units up to 600 as well as
large mixed-use developments.
From its beginnings in 2000, CCM has become a well-respected
asset manager and now works with over 100 associations with
16,000 units served by over 300 employees. Darlys and her team
deliver resources and responsiveness through six regional
offices - in
Orlando, Miami, Jacksonville, Charleston,
Nashville
and Atlanta.
Darlys Walker is best known for her passion and precision,
understanding that the only difference that matters in today's
demanding marketplace is service delivery ... doing what is
promised and what is right. She knows that every community
serves two masters ... the property owner/developer and the
resident/homeowner. "If we are not equally responsive to
both, we are not doing our job," she states.
Her clients say it best: "Darlys really knows her
stuff" ... "at the top of her profession and it shows
in the caliber of her clients" ... "delivers quality
resources that match up well with needs and expectations that
are really rigorous."
She is a licensed Real Estate Broker in four states, holds an
Associate's Degree in Marketing and has earned the Accredited
Real Estate Manager designation from the Georgia Institute of
Real Estate Management. Also she is one of few certified as a
Lead-Based Paint Abatement & Removal Trainer in Georgia.
Darlys Walker and her team have been selected to manage the
condominium conversion process and day-to-day operations for
many of the Southeast's most high-profile condominium
communities including luxury high-rises, mid-rises and
garden-style homes. Most recently she has been recognized as an
expert in 're-versions' of communities from condominiums to
leased homes, as well as repositioning projects. A visionary and
a tireless perfectionist, Darlys demonstrates hands-on
leadership, working individually with each client and staff
associate to achieve defined business outcomes and satisfaction.
For more information about Darlys Walker and Condominium
Concepts Management, Inc. please visit www.condominiumconcepts.com.
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