Good morning,
Commercial Lending continues hot, as we observe some sector shifts from apartment and hospitality, to industrial and distribution. This market keeps you on your toes.
Successes:
- 4-house mini-subdivision construction loan
- HELOC for rehabber-crossing on development land
Last year, the FDIC and Federal Reserve issued an early warning concerning an excess number of construction loans to total loans. Last month, such a memo was issued for the hospitality industry. These warnings maybe exuberant, yet if commercial real estate values drop 35%, a member bank is called to perform a “stress test” on their overall commercial lending platforms and portfolio mix. Message: Stay safe, stay diversified.
It is good to note that in our recent history, the overall loan quality has never been higher. This should help ease concerns about a next recession or bank safety. Bottom line: Banks are not loaded up with garbage loans, instead holding loans with solid fundamentals. In short, today’s expected price declines will be far more from investments not meeting expectations, than non-performance. Just a few thought when reading the headlines.
Who Better To Call Than Michael Ryan
27 years of successfully writing commercial loans:
– Office / apartment / construction / SBA, and more –
Our business comes from 2 main sources:
#1 – Direct calls and referrals from you
#2 – Receiving a call from someone declined or close to being decline.
Why call us? We run close to a 50% success rate in finding solutions when others say no.
Please keep us in mind if you or those you care about, are in need of sound financial guidance and resources, for a successful loan package. Have a fabulous day.
Gratefully yours,