January 2019 Commercial Lending Successes

Good morning and welcome to January rains!

Commercial Lending
The Business and Investor Side of Our Business

1)  Interest rates:  Stock market fears, softening in Europe, China, and Japan, plus the US Government shutdown, are quieting the Treasury and Bond markets.  We remain watchful.
2)  Residential Real Estate:  Activity in our local residential market is again trading with a healthy sense of balance. This after a few years of a strong Seller’s market.  Thus, following a drop in value last quarter – Fed rate bumps – we anticipate appreciation to be more stable. This will help cool and prevent speculative buying.  Good news and a good sign for Spring Buyers. 
3)  Commercial:  Movement in sales and leases are hampered from a low supply.   

Outcome: As we anticipate Spring, this pattern of easing should be helpful for the single-family market. Such may not be the case for commercial, even though this market tends to be quite diverse and client specifics vary considerable.

Call us. We are here to help.

Success Stories

Financing “retail strip malls” is one of our successful investor specialties. Here, a few lending partners are ‘all full’ based on portfolio lending, while most are actively seeking new loans.

Recently we received approval for a small property in the Sierra Foothills – just off the mainstream. After considering the size of the downpayment, our lending partner was willing to accept a less than perfect credit profile and a niche market business plan. Success most often begins with a good plan, proper preparation, persistence, and a diverse pool of quality lenders.

In the old days, lender exceptions or adjustments – those outside lending norms – automatically triggered higher rates of interest. Our argument: A bigger-sized downpayment, while keeping the “better” rate, makes for a better loan. Lower rates helps with expenses, while a higher down payment, reduces lender risk. Such savy lending awareness, should more and more become the preferred perspective. Thus: More skin in the game, with the better rate, makes business sense.

Call us. We work for you.

Good news: Our commercial successes continues to building steam. We are now offering an exciting loan programs, with awesome terms. A client closed an apartment purchase with a 30-year amortization, due in 20, having a fixed rate for 10 years – plus No personal guarantee.

This is the reward of having lending partners who respect our work enough, to call us when help for others is needed. They trust our approach and loan packages. In response we are careful to help them maintain the quality of their depository relationships. Team chemistry.

You have heard me say it before, it all starts with conversation. So give us a call.

Have a fabulous day.

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