Your September 2022 Commercial Lending Successes and News

Good morning as we look forward to Fall;

Back to Business – Commercial Investing

Stay Strong – Be of Great Courage – Be Prepared

Take Full Advantage of Great Rates – Today!!

Other News – The World Bank: Most major countries are preparing for further tightening of rates – higher short-term rates – to combat demand driven inflation. As wordsmiths, they yet hide the facts and realities of recession. With this, is the undiscussed discussion: Is inflation and raising of rates consumer driven, or instead, more about the availability of new supply – supply chain and lack of US production? Of note, the international shipper, Fed Ex, disclosed a substantial global drop in shipments. Keep in mind, a lack of supply also raises prices – inflation – and in response, consumers begin to buy less and GDP goes down. Traditionally, we are in a recession. And now comes the trap of “not knowing” and with it stagflation. Fed Ex and UPS numbers – and discussions – may prove better signals than jobs and wages the Fed reports to watch. Bring production home. 

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

Call to Action – Bad News and Less Bad News

The Bad News:

Sellers of real estate are battling the same challenges as the Buyers. With interest rates peaking at the highest levels in years, pricing pressures continue for Sellers. On the short-term horizon, the next Federal Reserve meeting will likely jump Fed rates by 0.75%. 

We are watching if this jump brings a helpful lowering of long-term rates – easing of future fears of inflation. This would match what happened the last time Fed rates jumped. Only this time, rates should stabilize and not steadily increase back to today’s rates. With this, will be a careful review of the 5 and 10-year yields, watching the path these rates follow.  Call today for an update, as rates are quite fluid.

Less Bad News: Covid-19 Impacts

12/31/19, saw net worth for household and nonprofit organization at $116.4 trillion. With Covid-19, the number quickly sank to $110.3 trillion by 3/31/21. Then, due to extreme government spending, we saw a rebounding economy zooming net worth to $150.0 trillion. It has since fallen by $150 billion by the first quarter of this year. Today, net worth has fallen to $143.8 trillion, with high inflationary numbers. 

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: Apartments lead in sales, as current easing of rents, signally a potentially new equilibrium. Industrial continues to shine, as shipping volumes near pre Co-Vid levels. With this, new construction and rail lines – partly financed by Federal deficit spend – brings needed infrastructure, plus technologies for processing container ships. Watching Savannah GA, as it leads this wave.

Work from Home: We are seeing the growth in ‘Third Places’. This is where employees are logging in from a 3rd place – office or home or now, a 3rd place. Such flex workplaces – coffee shops, hotel lounges and co-working – are posting large gains of 8 %, over last year. With interest, this year shows 35% of employees saying they log in at least once a week, from a 3rd places. Musk may disagree.

Brick and Mortar: Retail sales continue to post solid increases. With this, shopping centers – anchored with grocery stores – leading the sales volumes for this vertical.

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

One cannot repeat this enough. WE need them.

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 needed rebound in rent growth – post Co-Vid shutdown.

 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 after by lenders. Good News: Cap rates remain quite low and market participants are 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 rates still to good to 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.

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