Commercial Lending Successes for June

Good morning to a Summer rush of Commercial lending:

Two Important Invitations:

Keep your July schedule open.  I will be presenting our “Tax Deferral and Avoidance Strategies for Highly Appreciated Real Estate” in Fremont and San Francisco. When? In the middle of July.  Check our next letter for sign-up – both events will be free of charge.

At the end of September, we have a table at The Norris Group’s “I Survived Real Estate” black tie gala, at the Nixon Library.  This event is $ 200 per seat and it is sells out each year.  If you have interest, please let me know – our table is filling-up quickly.  Call now.

Onto the News of the Day

Commercial sales continue to rock and roll.  It seems every week there are a couple of substantial property sales in the Great Bay Area, or huge leases being picked up.  If you see slowdowns in the tech industry, please let me know.  I see no cracks in the sidewalk.

Even at this level of activity we see commercial projects taking months, as the number of multi week delays amaze me. The good news: We never stop working for our client’s needs.

Multi-tenant office / retail refinance, Construction, Mobile Home Parks, 

Apartment Buildings and student housing – these are some of our current projects.

As the interest rate continues to tick upward, there has been an uptick in refinance inquiries.  With stable cash flows, low vacancies, and good balance sheets our clients’ opportunities and choices are far better.  A great time to prepare for tomorrow. One available choice is securing financing, with a fully amortizing option.  This is huge in a market where 10-year balloon features are the norm.  Please call today – Don’t miss out.

We are ready to help.  So give a ring, if you know people with projects in need of personal care. We look forward to helping your friends and co-workers alike.

As a Refresher – Our definition of “commercial”

For us, “commercial” lending is when a loan is not directly related to Dodd-Frank financial reform act.  Thus credit lines, private money, and agricultural / estate properties are not “true” residential loans – even if some consumer lending is involved.

The good news:  We are active in each of these sectors of lending. If you or a friend is seeking commercial financing – give us a call.  There isn’t much we cannot handle.

News and Comments on the Future 

As the Federal Reserve Board again increases short-term rate, there are a couple of interesting tidbits: 1) keep on eye for possible inverted yields, and 2) comments of the new Chairman, Chairman Powell, are more and more reflecting his perspective and view point.

We can expect comments after each meeting, rather than the current 6 per year.  With this, there is talk of 2 more rate hikes this year. For me, one seems more likely.

What about Fed plans regarding QE? Expect them to reduce monthly repurchasing from $20 Billion to 10 Billion monthly beginning next week. We will be watchful how this impacts EU and Japan moving money into our Mortgage Back Securities and Treasury Bills.  Why important?  There have been rate bumps with each reduction.  The current plan is to reduce this QE to zero in October.

Our Lending Process

Need the help of a financial expert?  For us, the first step of your success, begins with our first conversation.  This initial call is a proven step to your success. It is here we carefully review three essentials:

1) Availability of Capital,

2) Availability of lender products fit for your specific needs,

3) Business market expertise and insight.

Looking to buy or re-allocate your current portfolio?  Together, we carefully review a number of successful strategies whereby your capital-gains continue working for you.  Such proven techniques can be especially beneficial for highly appreciated real estate.

For many investors, this delaying of the “tax monster” is of great interest.  And best: We we can help you build a step-by-step approach, one adaptable to your situation and overall financial plan. If you are ready, give a call.  We will gladly introduce you to six proven ways to “sell and not pay taxes today” approach to real estate – even if owner occupied.  BEST:  No cost or obligation to call and ask!

Our Pride is in Your Success

Regardless the road traveled, experience makes clear two keys primary to success:  1) market timing, and 2) one’s commitment to early preparation.  That said, let’s begin preparing today.  What better way to keep “Father (or Mother) Time” working for you?

Of special note:  If you face a financing challenge with either: 1) a turn-around project, or 2) a failing tax-deferred exchange, due to “up-leg” financing, please call.  We are skilled at helping you find need alternatives for the outcome you seek.

Our predictions:  Continue planning for rising Fed Funds rates in 2018.  Let’s remember, rates remain relatively low for an expanding economy. Let us also be ever watchful of inflation rates and shifts in Federal Reserve policy, regarding quantitative easing.  Both can result in higher bond yields and mortgage rates.  Keep in mind, new demand for money driven by US debt or increased commercial activity, will effect rates, as does rates of inflation.  Call us.  We want to help you lock into long-term rates, today.  Now is the time.

Excellent preparation is key to overcoming concerns of higher rates.

Let’s talk soon –  the economy is expanding and staying in touch is key to being ready.

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