Your December 2022 Commercial Lending Successes and News

Good morning, wishing you great joy in these wonderful Holidays !

Commercial Lending

The Business and Investor Side of Our Business

Many market moves – anticipated in our letters – have come to pass. As we prepare for the coming New Year, our goal is to continue such efforts – to present tomorrow, based upon today’s actions. Here are a few market dynamics to closely watch, in the coming year:

1) Interest rates: Watching how interest rates will be effected by a downward sliding stock market, a softening in Europe, and the expected 1/2 % rate increase by the Federal Reserve last week. In spite of the recent Fed decisions, the 5-year treasury is down 3/4 % over the past 5 weeks, while the 10-year is down only 1/4 %. Near term, expect rates to remain within its’ recent trading range. With commercial loans in mind, keep comparing the 10- year and 5-year treasuries. They provide helpful insights. Call to learn more.

2) Residential Real Estate: Locally, our market continues rough, with continued low supply. This, even after recent years of a stellar Seller’s market. We anticipate a slow down of appreciation, awaiting meaningful softening of mortgage rates.

3) Commercial: Sales and leases are hampered by low supply and lender challenges. Key: Quality of existing leases for investment property. For an owner occupied SBA loan the key is the 3-year track records of company P&L’s. With talk of a troubling recession know credit committees are carefully examining every thing. This despite record balance sheets. Call us. Let us help you prepare for and navigate these choppy waters.

Outcome: These patterns should continue, as we await Spring. Good news: Inventory challenges show no sight in easing. Yet, commercial as a whole is far more diverse, with each client needs varying considerably. Our goal is to highlight your strengths. Let’s talk.

Call us. We are here to help.

Success Stories

Small business lending opportunities continue. Not all is doom and gloom. Companies are expanding, while others prefer to invest, rather than rent, for the next decade or two.

A unique challenge: Developing a strategic plan, so a non-profit can buy real estate. Not everyday, yet we regularly structure a loan – as a group – for the purchasing of a building, for the sake of a non-profit. Herein, we match commercial lending, to interest rates and lending program, within the dicey lending arena called Churches and non-profits.

The approach is two step, with its own pro’s and cons. But with careful planning, structuring, and the gathering of data and resources, all parties will find satisfaction.

Good news: Our commercial successes continue building steam. Our exciting loan programs – with awesome terms – plus our successes, keeps the phone ringing. Earlier this year, one client closed a business buyout and has since grown the company, as he planned.

One of our bank / lending partners introduced this client. They were unable to meet the specific terms of the purchase transaction loan. So they called us, knowing we were better positioned to meet the unique needs of our now successful client.

Such is the reward of having lending partners who respect our work and due diligence, to the favor of the client. They trust our approach and loan packages. In response, we are careful strive to maintain the quality of their depository relationships. Team chemistry.

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

Have a joyful Season of many blessings, with family and friends.

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