Good Morning in hopes of a prosperous Spring,
Post-election, commercial lending has not hiccuped from pre- and post-election concerns. Yet a few lenders, awaiting further confirmation of the strength of the economy, remain more stringent in loan approval. However, any bump up in interest rates, at this time, will help ease such things.
Further, the following supports an improving economy, both in numbers and perception: Stocks: up; consumer and business sentiment: up; wages: up; participation rate: up, and unemployment down. Even inflation is showing signs of increases in wages and demand, though rising oil prices have stumbled or stalled. Add to this a call for lower taxes, less regulations, and Europe looking to invest in America, and you have a recipe for a boom. We shall see how it plays, but keep in mind, rising rates at this time in the growth cycle, often prove positive, not negative.
A recent commercial lending successes concerned one of our developers. They were able to obtain a commercial credit line across 2 development projects, and these in different counties. A second success is for ground-up construction, on 4 spec single-family home subdivision. Each offered unique challenges, but with careful preparation and packaging, both found success when others said, No. Having solid funding sources who trust the quality of our work, sure helps.
If you or someone you know, has an interesting deal, please let us know. We can offer and schedule, a fast-paced, 30-minute free consultation. What better way to see what’s possible.
We are here for you and will continue with you from start to finish, whether commercial, Small Business, or residential investments. We are the financing arm who works for you. We find solutions and are proud of the successes our clients achieve. Give a call. Moving forward today, is the best way to keep ahead – to profit – from what is likely following.
In closing, a confirming tidbit from the past: Chicago Fed “National Activity Index” tracks 85 differing metrics. This number has continued to be positive. What does this mean to you, the investor? It points to a positive future. What if it was negative? Since 1972, when this number goes negative, a coming recession follows. This is a good time to evaluate your holdings.
As your friend in lending, we will keep you informed.
Gratefully yours,