Good morning,
This month’s commercial success includes critical data-points, ones important to keeping things in perspective.
Business is brisk, though lending remains somewhat stringent. Currently, our work is focused on: 1) construction projects, 2) a commercial multi-tenant office building and 3) SBA transactions. And though at times, the pace seems slow, it is what it takes for lenders to overcome past concerns. That is why our loan packets address lender issues, before they ask.
Helpful facts gleaned over the past month – a quick glimpsed into tomorrow.
- Volume for 2015 Small Cap loans – under 5 M – equalled $180 Billion.
- Core commercial property values are up 10 % over last year, even with a 0.3% drop in January.
- Small banks approval ratio equal 76 % of applications while Big banks drops to 58 %. Online lenders rose 71 %. (Study by seven Federal Reserve Banks.)
- For those fearing a looming recession or a bear market for stocks, history proves real estate as a secure long-term investment. And with rates dancing at record lows and investment money flowing in from Europe and China, now is the time to consider the smart money choice of investing in US commercial properties.
- Lending approval is tightening or perhaps better said, “delaying” . Lenders wait the fallout from the recent vote in Britain as they continue to digest their many new loans, in specific market niches.
- Truly a great opportunity to prepare today for the next round of lending.
- One final point: 7.4 % of the market is commercial properties compared with 92.6 % for residential. Yet, 42 % of property tax revenue comes from this same 7.4 % of commercial properties. Such is the nature of the State of California.
Never hesitate to give us a ring.
The vast and many different types of financing we provide, cannot be placed in a single list. Our goal is to find the Yes that leads to your success – one that is safe and secure.
Have a fabulous day and talk with you shortly.