Posted by Leonard Steinberg on April 11, 2011

Many buildings seeking to re-finance their debt to take advantage of the still historically low rates, come across a little problem …..pre-payment penalties. With the potential for rising interest rates increasing daily, those wishing to re-finance now cannot do so as the pre-payment penalties are often severe.

Winter & Company, a New york based firm specializing in commercial real estate finance, have come up with a solution that I think is rather brilliant: a FORWARD COMMITMENT, whereby a rate is locked now with a closing date set well into the future to allow for avoiding an early loan pay-off of an existing mortgage with pre-payment penalties. Buildings with debt should take heed now, before rates rise.

Unlike larger banks, I have found Gregg Winter and his team of creative bankers to be highly efficient problem solvers. For the sake of full discloure, I do invest in a Winter Fund: that should not take away from the company’s history for strong, solid performance, even through the roughest times. And no, this financial institution did not require a Federally funded bailout in the recent meltdown.