Good morning to anticipation,
Commercial Lending
Small Business and Investor Side of Our Business
1) Interest rates: Good news: We are 1/8 % lower than a year ago. Even more, rates have been moving sideways since last November, with 5-year Treasury up or down but within 1/4 %.
2) Residential Real Estate: Home-buying is an election of how Buyers view the future. After 2 strong years and a weak 2nd half of 2018, local buyers are now digesting interest rates, China policy, and a new governor in Sacramento. Thus Spring Buying is too early to call.
3) Commercial: Continued strength across all accounts, with construction continuing strong amidst extremely low delinquency rates. Good news: Increased project costs, though slowing / sidelining some projects, should help curb excess build-up of available space. Outcome: Commercial remains strong, with some signs of tightening on the lending side. Let’s not over speculate. It may be their way of quietly slowing the pace of market growth,
Call us. We are here ready help, today.
Success Stories
Financing “retail strip malls” is one of our investor specialties. With strong demand, most of our lenders are active, ready to lend. Yet a few, based on portfolio lending, are ‘all full’.
1) A fun project with a good result: We successfully re-positioned a small apartment complex out of a bridge loan, into permanent financing. The goal: Stabilize cash flows and they did.
2) Long-term ownership of a small retail property, with cash-out for property enhancements.
Good news: In days past, any lender exceptions or adjustments – to their norms – meant higher rates to you. Our counter: A larger downpayment, offsets lender risk and thereby justifies the “better” rate. This is a stronger loan for all, as the “better rate” increases net cash available to pay on the loan. Such savvy lending awareness, should more and more become the preferred perspective. More skin in the game, with the better rate, makes better business sense.
Call us. We stand for you.
Good news: Our commercial success continues building steam. We have good lending partners who are flexible, willing to listen, and able to offer new programs with great terms.
Such is the reward of having good chemistry. They respect our work and trust us with referrals for clients in need of help. They appreciate our approach and loan packages. In return, we are careful to help them maintain the quality of their depository relationships. It works.
You have heard me say it before, it all starts with conversation. So give us a call.
Many blessings for family and friends.