Good morning to the Holiday Season of Lights;
Commercial Lending
The Business and Investor Side of Our Business
As we finish out a very busy year – they do move fast – I offer you, our clients, our referring partners, our Realtor associates and our friends, a heartfelt thank-you of appreciation and gratitude. GoodNews: Business sectors survived when headlines said otherwise. This regardless of existing challenges here and abroad. Our goal: Give you reason to sit-back, breathe deeply, and put clear focus on your success. We hope for you, another good year.
Focus
My 35 years in the lending business keeps me one step ahead. The Good News: It provides you trained and learned knowledge, plus a full range of qualified associates – keys to success. It opens doors to a vast array of lending needs and demands.
Michael Ryan & Associates is here for you. We have excellent lenders, with the best lending options with the best rates. Fitting with our mission to bring clarity to the process. You are our focus. Call. Please know, we depend on your business, your introductions and referrals.
THANK YOU!
Special Attention: Retail Shopping Centers and Investors
In the world of financing, we are two-fold: 1) Commercial investing: Retail Shopping Centers, etc. and 2) Residential Investors. What’s of special importance: Our established relationships with an array of funding partners. This allows us to place loans for all types of real estate properties – Hospitality, Storage, Office, Industrial, Ag, and Construction & Development loans. Most helpful: In a challenging market, we have a lender you need. Added advantage: Our team has the talent pool to turn a rejection letter into acceptance.
Why so? Because our financial solutions are dedication to meeting the needs of a successful closing. Our Goal: Maximize long-term profitability of our commercial real estate investors.
The Economic Realities:
Changing Markets and You
1) Federal Reserve: As we close out the year, the Fed did as expected – cut rates by ¼%. The market had hoped for more. The Board did confirm once again – and again – their choices are data dependent. 1) Strength of the economy – GDP growth, jobs numbers, unemployment rates and, 2) inflation numbers above 2%. Combined, the Fed suggests future rate cuts in the Fed Funds rate – for 2025 – will total 1%. Half of what markets expected.
Sorry to say, days of cheap money desired by Wall Street and others, is not coming back soon. An important point from Jerome Powell’s statement: ‘it looks like we avoided a recession’. Herein, lies our planning by good preparation approach: To be a safe place to explore a multiple of ideas, concepts, and straight-forward realities. All to provide you valued information and a conservation approach to keeping your money & investments secure.
2) Economic Data-points:
A) Interest Rates: If you have commercial rates tied to the 10-year Treasury, note such yields can increase after the Fed begins a rate cut cycle. Moving back to market dynamics, we recently had the 10-Yr drop after the election, only to move back to recent high water marks. Not quite as high as last April and May, but closer than not. We have a positive yield curve.
The bond market reacts to anticipations. Anticipations of debt, of Fed tightening or loosening of rates, shifts in the Fed balance sheet, and international activities and rate pressures.
Expect a rocky ride the next few months as we see what the tone change in D.C. actually brings about. Remember, we are heavy on numbers and not dependent upon headlines. Stay tuned.
B) California Economic Performance: Coming under new legislative pressure affecting eviction of commercial tenants. Such is not conducive to overall business growth.
For your review: Commercial Tenant Protection Act in CA. It starts Jan 1 of 2025. https://www.jdsupra.com/legalnews/commercial-leasing-changes-you-need-to-2374818/
C) Inflation – Last weeks numbers came in hotter than expected. 0.1 % of the move relates to vegetables being up 30 % last month. The other 0.1% was due to a 50 % increase in the cost of eggs – no surprise after the number of birds euthanized due to avian flue. I am unsure why the vegetable increase. Regardless, these numbers are not a good reading for inflation hawks and the market in general. It seems a beast to achieve the numbers the Federal Reserve Board seeks.
Good news: Wage growth continues to outpacing inflation.
My Perspective
Debt and equity with a changing market. From buyers and owners we get the calls for maximum leverage. Leverage is good, and many believe more is better. I will say yes – but.
Many aspects to the term ‘But’. The most common is shifting markets. As all real estate is local, knowing local trends applies. We like to seek needs and fill them. When we do, do not be surprised with many others doing the same. When does the specific property type hit saturation, and then what with over-saturation.
Therein lies the basis for many of our conversations. We like to be present, a bit of a devils advocate and primarily a safe place to have ‘what-if’ conversations. Not to deter, to protect and to prepare.
There are no generalities in our conversations. When one call is a refinance of a restaurant, then next the purchase of an apartment building then the next a high-end fix and flip project. We find solutions for each. Give a call, I would love your input and suggestions.
Call us. We are ready to help today.
I hope you find this letter instructive for both Commercial and Residential investing.
Key: Discipline, Preparation, and Patience. Plus a professional putting your uniqueness, first.
Good quality isn’t cheap. Cheap often costs more.
Thoughtful Consideration – Call Today
Commercial investments: The news is quite interesting: Hospitality is doing fair. If you look at SF, not so.. Yet there are major metros where revpar is up above 2019 levels. Like many projects is the location providing expansion, or contraction? The story is the same with Office. Location, location. There is no simple answer or metric stating good or bad. We do talk about some of the high level numbers, most often as a counter-point to media reporting. Yet, with each conversation we will go into the location, location. Assisting your knowledge to determine whether good or bad.
Commercial success: It continues. The depth of our lending partners allows us to work with certainty of execution. We are getting it done. We have the proven trust and credibility!
Notable Success: This month another apartment building done with interest rate in the 5’s. And, a local restaurant which didn’t qualify for SBA, yet did work as a CRE loan. Have a project in need? Call today.
More Good new: From our friends, business in the tax-deferred exchange business is booming. If you are considering moving or trading your investment assets, let’s talk about saving you money. Call today. We can provide helpful direction and news on ALL the benefits of deferring Capital Gains taxes. KEY: Know your full range of options and benefits, before simply pulling the “sell” trigger. This first step is most important.
Consistent calls – Business opportunities: Good news, healing from the CoVid disruption continues. With this, much is going on in the investing market – AI expansion to name one. Regardless, the challenges of the new frontiers, there is one constant: We love digging deep and finding solutions that meet your expectation – regardless how unique the propery.
Know someone in need of such help? Call us !
We are ready and now is the best time to start preparing for tomorrow.
Why We Are Unique: The breadth of our lending partners: 1) business-purpose loans – with light documentation, 2) re-development building projects for housing, plus 3) commercial property purchases. How does this work? It works because we are – a team. We offer a broad range of lending partners able to provide flexible loans, excellent programs, and great terms. It is how we help move your life forward and the Good News: Our track record. It shows why our phone keeps ringing. Let’s talk. We can help.
Loans Coming Due? Lets talk. They are in high demand, as evidenced by our increased work to refinance various commercial properties. Recent statistics show 30 % of maturing loans were refinanced, 25 % were modified and 40 % are in default. In todays market of risk and uncertainties, it’s key to check loan parameters and keep due dates – especially the annual lender requested financial statement. Key: Stay ahead of upcoming due dates. This keeps your lender smiling. Good organization has worthy benefits. We are ready to help.
NOTE: If you have non-payment concerns, please call.
We can help with loan modifications
Good News: We have great lending partners. They respect our work and attention to detail. This is good news for you, as they trust our approach and loan packages. In response, we carefully strive to maintain the quality of their depository relationships. This is called team chemistry and what makes our lending relationship, a winner. Join our team.
You have heard me say: It starts with a first conversation. Let’s talk today.
Enjoy your family and friends this Holiday season. With all the financial talk, it is most important to celebrate life with those who love you. Be well. Be safe. We stand with you.
