Good morning to Fall;
Back to Business – Commercial Investing
Stay Strong – Be of Great Courage
Take Full Advantage of Great Rates
Manysectors in commercial real estate show positive signs of recovery, especially Industrial. It continues to lead the charts, for strength. Office, Retail and Student Housing are troublesome. For those waiting for a drop in valuations, we have to recognize banks and lenders are working with properties currently on the edge and in distress. More work-outs, more open communication, and lastly, more simply kicking the can down the road to avoid a possible tsunami of properties foreclosures. I hope DC is listening to Small Business.
This is bit a of Good Newsfor current owners. Efforts of lenders to be aware of the street level realities, should help keep our ever improving economy, stable. It is needed as we work through employment issues and supply-chain pressures. This is far superior to simply taking back and selling bank-owned properties, bring additional valuation issues.
News of Interest: Institutional investors on the sidelines. New action is from new investors – with cash – seeking investment properties. A positive support to valuations.
Call to Action: Underwriting
The Bad News:CoVid negatively effects incomes, net cash-flow, and property valuations.
Current estimates: Close to 10 % of commercial loans are with special servicers. The BIG question: How will this be handled, as we emerge from CoVid? Yes to work-outs, yet the question remains: How they will be structured, how will they be evaluated, and of these, what percentage will be foreclosed? These are the concerns of lenders and their view on present-day risk. Call us – Preparation is Key.
The Good News:
We have the needed tools to hold intelligent discussions – developing workable options and real-time solutions. And, as friends, the goal is to discuss differing strategies of successfully investing, for a stronger tomorrow. One tool helps point out increasing of rents and decreasing vacancies. We utilize month-by-month rent rolls and runs cash-flow statements, to make the ‘story’ of a brighter tomorrow and stronger P&L’s. My kind of investing.
In the meantime, look for even more “Bridge-lending” this year – and next. A “Bridge” loan
is a great option, when traditional commercial underwriting falls short.Let’s Talk Now.
SBA LENDING:Full Steam Ahead
1) SBA lending continues full steam, 2) Refinance window has re-opened, and 3) some rates on buildings, starting in the 2’s % !!
Call Today!– Don’t Delay.
Do all you can for your local Small Business
One cannot repeat this enough. WE need them.
Market News
Inflation:Hmm, CPI (Consumer Price Index) cooled a bit past month, with year-over-year easing. This with good Treasuries auctions, giving a short movelower in rates. Then came consumer spending. Hotter than expected, rates bumped up to last week rates.
Result:Stock remain flat the past 4 months with Bonds chopping sideways in the too familiar 1/4 % band. Bouncing in and out of this range. For the world, we are a safe haven.
Outcome: Let’s look for offsetting factors that will smooth out Fall, awaiting Christmas. With this, pent-updemandmay soften and supply–chain pressureseasing. Primary Issues: 1) a major port closing in China – 3rd largest, due to Covid. 2) Hugh back log of ships waiting to unload in LA CoVid. 3) Lack of semi-drivers to move freight, when ready for delivery. 4) Unemployment benefits, when job opening crying to be filled. The hope is with kids returning to schools, people will return to work. With this, the supply vs demand issues should find better balance and pricing. If not this, it will prove fun, as the “experts” explain the harsh realities of over-reacting to CoVid. For sure DC tax and spend policy could box in future Fed policy.
Key: Too soon, to over react to unemployment numbers, inflation, or politicians.
Good News:The benefit of vaccines – States, stores, and schools re-opening. With it, States are ending the extra pandemic payout. This is needed and responsible, especially with so many new job openings. People and States will benefit.
Re-Openings:Pent-up demand was real. Retail is having a huge surge – 35 % over last year. Good News: online percentage of sales, vs brick and mortar, dropping off 8 %. Amen.
Commercial Refinances:CoVid weakened P&L’s. The Good News:Lenders are still lending and financing continues. Kicker: They are being more diligence in the quality and detail of the paperwork. Here is where I can help. Let’s talk. Let’s start the “prep” work today.
We know the paper work, the process, and how they think
KEY:TheGood News of great rates and what it means to your investments.
These rates offer unique opportunities: 1) Secure solid financing, 2) Modify one’s commercial investment portfolio, even an exchange to defer taxes, 3) Strengthen the balance sheet, and 4) Increase net cash.
If you are ready, then let’s get going. Let’s talk today.
In the works:
Rents for Apartments:A compromise. Tech heavy areas showing month-over-month improvement in rents. Most of the Country showing steady and strong increases in rent. Good News: This is also tracking with higher levels of appreciation, in single-family homes.
Office properties: Slipping. Those with market challenges are putting properties on the sub-lease market. No Surprise: AirBnB is offering their SF building for sub-lease. When one considers having 100 employees and 60 desks.. There is much to contemplate.
Good News:YES to “On-Edge” Financing
Looking ahead, may I remind you that we do ‘on-the-edge’ financing. This includes: Gas Stations, construction companies, and even commercial condo’s. Included is a smattering of small apartment buildings. It is a team game. First, with lenders having an “on-going-work” approach to lending and second, wonderful clients ready to work and meet the challenges. Add to this, our professional expertise, what you want to get done, gets done. Deals get closed. Let’s talk. Good things come from good preparation.
Summary
As a broker: WE provide a needed ray of hope, in uncertain times. For our commercial clients: WE provide a straightforward, careful review of available lenders, with a full range of lending options. If you are ready, they are ready. Together we can make your investment dreams happen. It is an excellent pathway to success – uniting a strong, solid loan application, with interest rates unbelievably low. We are proven, with quality lenders ready to lend. Call today.
TRUST THE PROFESSIONAL
Trust the true value and peaceof getting your loan done – right.
Many blessings for family and friends.