Your October 2022 Commercial Lending Successes and News

Good morning to Fall colors and cooler days;

Back to Business – Commercial Investing

Stay Strong – Be of Great Courage – Be Prepared

Take Full Advantage of Todays Rates – Call!!

Other News – The Fed: Finally, meaningful action on inflation. But sadly, history repeats. The Federal Reserve Board is late to the game, makes employment – a lagging indicator – their focus, while seemingly ignoring the importance of liquidity. Recession is here. Let’s be sure its’ solutions are far more about America and the American family, than Europe, China or the border. 

Act today!! Knowing with certainty, Fed rates will continue to jump. Know DC will not cut deficit spending, nor stop funding the borders of Ukraine. Ask yourself, why the singular focus on consumer demand and employment? What about increasing supply, as a tactic to lower prices. It works for oil. Drill more and gas prices fall. Suggestion: Prepare today and vote in November.  Good News: Regardless all else, we are here, ready to help you overcome DC politics and Fed missteps. Call. I am ready to listen. 

Call with questions. Challenging times require patience, careful review, and good preparation. 

Call to Action – Bad News and Less Bad News

The Bad News:

Inflation / Deflation / Supply-Side issues: As we discussed, inflation has become lasting, the rate of increase will ease, but the higher prices will stick. Good News: Supply issues at the LA port are easing. The Bad New: Supply Issues. There are political issues, with economic impacts, in regards to the long-haul trucking industry. There are also supply issues in regards to the rails and possible impacts of a rail strike. Where is the leadership that puts people before a crazy no-growth, no fossil fuel ideology. Let’s hope to see better headlines, about inflation, but with November elections, who fully trusts the numbers. My hope is for a better Christmas season. 

Inflation / Deflation / Service Industries: Inflation has moved to the service sector, a difficult sector to influence. As to wages, they continue to rise, but far less than inflation. So taxable income goes up, while purchasing power goes down. Question: Is a soft landing possible? Only if we cut deficit spending, immediately increase oil & gas production, and demand leadership that puts the American people first. In the meantime, consensus suggests unemployment rising to +5 % and a worsening labor participation rates. Watch for increased use of credit cards – for necessities – even in the face of higher interest rates. And with this, a lowering of savings rate and increasing defaults. 

It is time to take the economy – and the politics surrounding it – serious. Vote in November. 

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.

Call Today! – Don’t Delay!

Property Valuations: With rising rates, average Loan-To-Value on properties, shows a drop. 

Work from Home: Secondary and Tertiary markets continue to hold up the best. Yet, we are seeing growth in the core markets, as people continue to come back to work. Anecdotal datapoint, we are beginning to see corporate-site sponsored farmers markets. These do not occur without a level of on-site workers to support it. 

Secondly, I hear rumors – and concerns – about the remote working pool. And with it increasing fears over being the first to be laid off. Is this a quiet shift from worker-led negotiations, within a booming labor market, to negotiations that are more company-led? Difficult to measure, but real.

Results: We may be at the beginning of a shift back to core markets. But for now, rents continue to be soft in core markets. Yet, this is a good place to gain future insights into a market ready to shift. 

Suggestion: Do all you can for your local Small Business.

One cannot repeat this enough. WE need them and each other.

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:

Apartments: Yes to out-of-state, 1st time investors. Urban settings are making a great rebound in rent growth from the Co-Vid exodus.

Land-to-Build and Fix-n-Flip: These market holds steady. True for our repeat clients in this space, as well as new people first entering this market.

On-Edge Financing:  Success loves company. This especially true for those searching for a 
“selling strategy” to successfully avoid / defer Capital Gains taxes. This number is strong. Good News:  We offer proven and effective tools to keep your cash working, for you. Are you considering selling, let’s meet first. Here we can discuss potential tax burdens and available tools to avoid or delay, the impact. We can answering questions and layout workable scenarios. Such is good stewardship of your hard earned estate. With this, information becomes the key to success. Call today. Don’t delay.

Yet More Financing: We are an excellent source for standard financing of investment properties. This includes apartments and NNN properties – high priority properties most sought by lenders. Good News: Cap rates remain quite low and market participants are active in numbers.

Summary

As a trained and proven broker: WE provide a needed ray of light, and insight, into 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, we are ready, and they are ready. Together, we build an excellent pathway able to make your investment dreams happen. WE unite a strong, solid loan application to rates still to good to ignore. We are time-tested, with quality lenders. Call today. 

TRUST THE PROFESSIONAL 

Trust the value and peace of getting your loan done – right.

Many blessings for family and friends.

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