Good morning to Springtime and hope for rain;
Back to Business – Commercial Investing
Stay Strong – Be of Great Courage – Be Prepared
Take Full Advantage of Great Rates – Today!!
New Year – New Dynamics What a difference a month makes.. On the expected side of the fence the inflation numbers should be peaking. On the unexpected a month ago.. the Ukraine war and Shenzhen being shut down for CoVid spike.
Other News: Gap between 10 Yr & 2 Yr continues to narrow. Latest differential is a mere 0.18 %.
While residential mortgage rates are up, back to where we were just before CoVid, a good indicator for commercial loans – the 5 year Treasury – is up about 1/2 %. Worthy of watching: The 5, 7, and 10 year notes are all tracking within basis points of each other. The pressures on the Fed continue. Now we add the retracement of the equities markets to their table.
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:
Commercial markets: How strong is the recovery?
Inflation degrades CA foreign exports increases from headline 4.5 % in January: “Unfortunately, these ‘gains’ are an illusion,” said Jock O’Connell, Beacon Economics’ International Trade Advisor. “Heightened rates of inflation and shifts in commodity prices and exchange rates in recent months sharply degraded the apparent increases.” As reported by Beacon Economics: While the U.S. Census Bureau is reporting a nominal 15.6% year-over-year bump in overall U.S. merchandise exports in January, the Bureau calculates that the real, inflation-adjusted gain over this period was a mere 1.3%.
The Good News:
Outlook: 2022 remains positive. New businesses continue to form, with even more re-openings. A lifting of mandates will help, but progress should continue, regardless. Rough estimates are the new businesses also contribute about 250,000 more people working. Fed are you noticing?
On the bearish side is the investors.. with inflation the now # 1 concern the sentiments of investors has cooled a bit from this time last year.
So, why would the overall sentiment be positive ? Because financing is more available now than a year ago.
Office Vacancies: 4th Q 2021 posted the first net gain in the office market since the beginning of CoVid. Secondary markets leading the way with 2.6 M SF net absorption. Things are improving.
More Good News: No surprise, multi-family led the way in 2021, followed by the industrial sector. These 2 sectors represented appox. 80 % of the transaction volume.
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
Economy: Before the pandemic, on-line sales accounted for about 14.25% of all retail sales. During the lockdown of March/April 2020, the percentage unsurprisingly jumped to 20.2%. Since then, it has steadily fallen to 16.5% by 6/20, 15.9% by 3/21, and 14.9% through 12/21. The current on-line sales level is now below what the pre-covid growth trend would have suggested. Good News: Writing obituaries for brick-and-mortar stores is quite premature. Fed – please don’t stop this recovery.
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.
These are examples in addition to our regular group of financings.. apartments and NNN properties. Both are right where the lenders are seeking, cap rates are still very low and market participants remain very active.
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.