The historically low rate environment we find ourselves in has made for real opportunities where āowner-userā commercial real estate lending is concerned. Weāre currently working our way through an SBA loan (food service property) where the lender is offering 4.125%...
The economy slows down, so prices drop. Companies make less, so they lay people off. So the economy slows down some more and prices drop a bit furtherā¦ Companies make even less, so they lay more people off. So the economy slows downā¦.
SBA: Size Matters. More than once Iāve had brokers and borrowers ask: āSince SBA Lending is a governmentally sponsored product, donāt all (SBA) lenders offer essentially the same thing?ā In a word, no. Smaller lenders make SBA loans with the established intention to...
As Iāve written in recent posts, The Fed is pressuring banks to reduce risk and the most obvious evidence of this is the struggle in todayās environment to get above 65% leverage. (if that.) Lenders havenāt changed their āLTVā guidelines particularly, rather, they are...
In the Great Real Estate Debacle of 2007-2008, many developers got caught (particularly in Florida, Arizona, etc.) between the rush to finish construction and a fading market. Often, only a minority of units were sold when default occurred and those lending...
When loan requests come in below $1 million (much less $750k) many of the better priced lenders drop out. While this definitely applies to āMulti Family,ā it is especially true of commercial properties. I recently had a daunting search for a $350k loan amount on a...
In residential lending a cardinal ā almost unmentionable ā sin is: āRedlining,ā or, refusing a loan based on the propertyās location. Commercial lenders of course, have no such restraint and will very bluntly refuse to lend in smaller markets or immediately announce...
Iām consistently surprised when brokers and borrowers ask me āwhat maximum LTVā a lender might go to ā as though the answer would tell them how much in the way of loan proceeds they can expect. It wonāt. Economic Underwriting takes precedence, which is to say:...