Good morning to Winter and Springtime like rains;
Back to Business – Commercial Investing
Stay Strong – Be of Great Courage – Be Prepared
Take Full Advantage of Great Rates
New year and new dynamics. The Federal Reserve Board has 3 openings with President Biden beginning to recommend new board members. The question: Will they bring with them, a bit more of a dovish posture? Being an election year, it will be interesting to see if their words, match their actions.
Regardless, one should expect rate adjustments – higher rates – as the Fed seeks to stem rising inflation rates. Quite the balancing act: Inflating interest rates to lower inflation rates. It is an election year, so keep your fingers crossed
Disappointment: Retail sales softened. December posted a drop of 2 %, and after pulling out autos and gas, it was down 3 %. Between rising inflation –11% since March, supply issues, and Omicron fears, it was not unexpected, but sill disappointing. How Omicorn and inflation work out, will be of primary interest to the interest rate marker. Question: Will DC spending help or hurt Fed inflation policy?
Call with questions, as these challenging times require patience, careful review, and good preparation.
Call to Action – Bad News and Good News
The Bad News:
Inflation and Omicron. Both are with us and current to today’s conversation. Both need to be carefully watched. But like all such issues, let’s keep perspective and not lost in the confusion. Let’s talk.
The Good News:
Outlook: 2022 remains positive. Of interest will be how employers and employees seek a new strategic combination of days at the office with time working from home. This bodes well for the commercial properties in the go-to cities. Heavy in the sunbelt, with Boston and Seattle strong for the northern areas. It should prove interesting, as innovation and imagination shine forth.
Office Rents: In spite of office vacancies and the unknowns of “work-from-home”, office rents post a healthy rebound from the 2020 CoVid shellacking. Add to this, strong increases in apartment rents and things are looking much better – better cashflow and P & L statements. Things look good.
More Good News: Short supply in housing, provides for strong price-support levels for home prices and apartment rents. This post CoVid rebalancing of value and pricing, is good for investors, and perhaps a reality check for those seeking. At the same time, housing supply issues is a multi-decade problem that is complex and not easily or quickly solved.
Suggestion: In these uncertain times, look for more “Bridge-lending” this year – and next. It is a great lending 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!
Suggestion: Do all you can for your local Small Business.
One cannot repeat this enough. WE need them.
Market News
Inflation: It appears to more than transitory.. Yet, so much is how we understand the numbers, otherwise simply published as headline news. CoVid brought a depression of prices and now we live in a period of pent-up demand and restoration of personal freedom. This year, I believe, we will have a better and more balanced perspective. Pressures of the coming 2022 election will play a role, with both sides of the discussion, becoming better known. And this is Good News.
Economy: Great News. Comparing current, inflation-adjusted, US purchases of services, to January of 2019, we have recovered,. Key: Purchases of goods remain up by almost 20%! It is clear, for now, the US economy is not suffering from stagflation. Question: Finishing the year with softening of retail sales and bringing focus on causes of the weakness – growth bumping up against supply or constraint issues surrounding Omicron, or weariness from inflation? These constraints are exacerbated by a worker shortage and productivity concerns. Next: Watch interest rates, Fed policy, and DC spending.
Commercial Refinances: Over the past year, Office Vacancies are holding flat. Good News: After a vacancy jump to 13 – 15%, due to governmental response to CoVid. Good News: We are seeing signs of financial recovery in this sector, regardless CoVid weakening P&L’s. More Good News: Lenders are still financing. They are funding projects. Kicker: They are more diligent in the quality and detail of the paperwork. Here is where I can help. Let’s talk. Let’s start the “prep” work today.
Bottom Line: These Great Rates are Key for Continued Sound Investing. These low rates offer unique opportunities to: 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.
We know the paper work, the process, and how they think
Projects in the Works:
Franchise Financing: For new people entering into new markets with proven franchises, we provide financing. It is available. This is the beauty of SBA-Financing and right up their alley.
Business Sales: We continue to work diligently on a couple of small business loans – business being purchased and the of refinance of an existing businesses. Key: Strong post-Covid financials. .
On-Edge Financing: Good News. Inquiries continue strong for both construction and those selling ways and strategies to avoid paying Capital Gains taxes. We offer proven and effective tools to keep your cash working for you today. When you consider the tax bill, lets talk first. Such is good stewardship for your hard earned estate. Have questions about differing taxes? Let’s talk. Information is your key and a needed first Step. Good things come from good preparation. Call today.
Summary
As a trained and proven 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 to good to pass up. We are time-tested, with quality lenders ready to lend. Call today.
TRUST THE PROFESSIONAL
Trust the value and peace of getting your loan done – right.
Many blessings for family and friends.