July Commercial Lending Successes and Market News

Good morning to Summer Fun in full swing;

Welcome to the healthy state of a continuing solid market – fabulous for most, yet challenging for a few. It is what keeps a market honest and not over heated. If you are ready, Call. We can help today.

Good News: A fast-paced, appreciating market – key to 2010 – 2015 – is not key to success today.

We are smack in the middle of a great, stable market, based in solid fundamentals. Chasing speculation does not carry the day. Best: We can help you find the right opportunity for your financial situation. We bring to the discussion the strengths, weaknesses, opportunity – and a plan – to help meet expectations.

We call this the WIN strategy to success.

Market News:

  • Rents and NOI: Both increasing. Translation: With our low cap rates, a simple increase in rents is bringing a 20 X, or more, growth in value. Today’s low rates help with this equation.
  • Market segment / sector challenge: Office market has a Dual hit of increasing TI costs and meeting tenants demands / TI expectations.
  • Overall Market: Employment growth strong, GDP above expected, wage growth positive with low inflation, due to strong productivity. Outcome: Yield Curve remains relatively flat.
  • Federal Reserve: Accommodative. This to helps bring support to the weakness in international markets. The Good News: Low rates offer the great opportunity to accelerated debt re-payment.
  • Housing: Supply constraints continue and support a low Cap rate environment.
  • Apartment rents: increasing in growth pace. Now approaching 4 % year over year growth. Great for landlords, yet more pressure for some of our renters to move into home ownership.

Call us. We are here ready help, today.

Success Stories

One of our clients specializes in purchasing distressed commercial assets. He then did the work necessary to bring the property up to current standards – clean and well presented. This brought to a once darkened corner, in a local neighborhood, a fully occupied building. More Good News: We are now setting up permanent financing, for the long-term hold. Excellent.

For the investor: Improved cash flow, future rental increases, and control of major expenses. Truly a solid asset to a diversified portfolio.

We love successes like this. If this is the success you want, we can help – you and your friends – to a strong financial future. Good News: Our many lending partners are ready to write – today – traditional commercial loans. Even more: We have lenders offering terms beyond the common 10-year term. Learn more – Call today.

KEY TO SUCH SUCCESS

Upfront planning with good preparation. It helps build a solid, strong loan request. Why? Because today’s lenders learned a few lesson from the past. They now know the importance of details and asking questions. This is where I believe I am most valuable to you and your future success. We know details – Let’s talk today.

New to Commercial Lending?

For those considering real estate investment, for the first time, please call. This first call is a great way to address concerns, questions, and possibilities. For starters, here a list of 5 basic types of investing – plus a “quick-start” plan.

Getting Started: Types of investor activities, keeping on eye on cash flow, timing, and profit:

1) Wholesale – ‘Time and Knowledge’ vs. Money

2) Flipping – Value Added

3) Rentals – Long-term Wealth accumulation

4) Lending – Source of Lending Money

5) Agent – Representation – choose wisely

Game Plan: Quick steps:

1) Commitment: Begin taking action on a plan – one based on numbers, less emotions.

2) Write a Plan – Define your keys of Success and what you want

3) Avoid Costly Mistakes – first seek experienced, qualified, proven associates

4) Coach, Mentor or Accountability Partner

5) Competitive Advantage – Resources, Talent, Partners, Personality, Risk

6) Do the Math and add a 10% – 15% margin of safety.

Over the years, I have written and lived this list. It is the benefit of my cumulative 30-years of time, expertise, and keeping your success, as the primary focus. You are my first priority.

You have heard me say it before:

It all starts with our first conversation.

Let’s talk today.

Many blessings for family and friends.

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