Commercial Lending Insights: March Market Update & Financing Solutions
A New Month, and New Headlines.
Successful Closings Are Our Priority
New to our lending conversations?
New to me? Great to meet you. We can build out something great by talking.
With just a few things out of the way, we can start our roadmap, which can include these services:
Tax-Deferred Exchanges 1031’s
Existing Loan Opportunities
Creative Solution for Complex Properties
How do we do it?
Call, Message me, or schedule a quick call in my calendar: https://michaelryanassociates.setmore.com/book
Our recent work continues to encompass the Development, Fix n Flip, Hotel / Motel, Apartments, Modular Construction with a bit of Industrial to keep the conversations going. What are you working on?
Economic & Market Realities
1. The Economy: A much sorter letter this month as the world revolves around the Straight of Hormuz. Until there is an outcome there, all other data is not in the driver seat of our part of the economic picture.
2. Federal Reserve: As noted above, they are between a rock and hard place, with energy up, this will lead to ‘increasing inflation’ and the stagnant employment market as a drag. They will sit on their hands.
3. Employment: Just tough out there. Beginning to see some speculators (aka talking heads) whisper there is a recession coming. I am not in that category.
4. Inflation: Much ado about oil. Which distracts us from health care costs, insurance and utilities, to name just a couple hot spots. When oil does come back down (spoiler alert – it has done this for the past __X__ decades), I am sure our ruling junta (the Fed) will find a way to take credit for inflation moving towards their paper target.
5. Interest Rates: Numbers speak, after the 10 year Treasury touching back on 4.3 % we are now back in my forecasted range of 3.75 to 4.25 %. Funny how that works.
6. Commercial in General: Opportunity is here. I am happy to report continued forward momentum using realistic numbers. Very interested in what you are seeing, hearing and looking at.
There is 3 slightly different investment philosophies I am seeing and working in. Some are in the value add, opportunistic space. Others are in the solid, almost mailbox money space. And, then those seeking the bottom of markets, holding for the momentum swings upwards.
If I don’t already know, kick me an email and let me know your style, and if you are in play. We will talk.
Spotlight: Key Market Sectors
1. Apartment Real Estate: As this sector will always move forward, over-built markets find a bit of challenge with occupancy and rent growth. Less built markets (which are beginning to get attention) are seeing both great occupancy numbers and rent growth. i.e. Chicago land is # 4 MSA for rent growth the past year. San Jose is at # 3. Both are similar in the matter of not enough supply coming online for the demand. This is not news, it is facts.
2. Residential Sector: Similar to the movement on the 10 year Treasury, mortgage rates are once back at their higher range end.
The single-family resale market continues to be hot. I make this statement as my clients continue to write offers, and are often times beat out. These are the well marketed, well priced properties. Those often times go into contract within days of being available. Yes, many properties appear to languish time-wise on the market. No easy answer here, just what my clients are experiencing.
Some Of Our Services: How We Can Help
Tax-Deferred Exchanges (1031s) Are Booming: Considering a 1031 Exchange? Contact us before you sell! We’ll help you maximize tax benefits, keep your capital working efficiently, and reinvest strategically.
Loans Coming Due? Act Now! Loan extensions are not guaranteed or as easy as they once were. If you have an upcoming maturity, don’t delay – start the financing process early.
Creative Solutions for Complex Properties: We excel at structuring financing for unique properties and deals that don’t fit traditional lending criteria. If other lenders have turned you down, we may be able to help. Interest only? No tax returns? All available, yet what is the most opportune for you?
We successfully structure loans for a wide range of properties, including apartments, hospitality, storage, office, industrial, and agricultural projects.
Let’s Connect
We’re in the business of building strong relationships, and our lending partners trust our process. This translates to better execution and smoother closings for you.
With expectations of falling interest rates and significant new investments coming to the USA, now is the perfect time to prepare for future growth.
Let’s talk today to position you for success in the evolving market. Call us to discuss your specific needs and goals!
Be well.
