The commercial mortgage insider blog provides a glimpse into the world of small commercial mortgages. Keep up to date with the market and get tips and strategies you can implement for owner occupied and investment commercial properties.
Many small and mid-sized businesses are expecting growth and improved profitability as 2014 continues. This optimism is fueling strong growth in the commercial mortgage arena.
There is a lot of liquidity on the balance sheets of many commercial lenders so commercial loan growth is set to continue.
Many small business owners have tax problems that effectively shut them out from bank financing. There are loan programs available to solve tax issues, generating cash to clear tax liens or pay prior or current year taxes.
Tax liabilities are both common and devastating to business owners. Solving them quickly can save huge penalties and fees as well as preventing damage to personal credit.
Too many "lenders" and "brokers" mislead prospective borrowers with super low rate quotes and promises. Be careful when you hear about rates "as low as" or "starting at" because they are always worse than expected.
Although defaults on Apartment Building loans are rising, K2 Commercial Finance has lenders ready to make apartment building loans.
Earlier this year, the Small Business Administration set aside $375 million to temporarily eliminate loan fees and increase the agency's loan guarantee to 90 percent for certain loans. The moves were part of the American Recovery and Reinvestment Act (ARRA), which was signed into law by President Obama in mid-February.
This article offers 7 compelling reasons why the second half of 2009 offers a great opportunity for businesses to purchase property and stor paying rent.
Get Fast Commercial Mortgages on all property types. SBA Loans and Stated Income Loans are our specialty. NO Upfront Fees.
Recession is Driving Down Property Values, But Cash Flows Providing Cushion for Loan Values
For all of the dread concerning a widespread crash in the commercial real estate markets that has been put into words in the first quarter of 2009, the nation's largest banks seem relatively unruffled coming out of the quarter.
In the midst of falling property values and stagnant investment sales, Macquarie DDR Trust put a portfolio of 52 shopping centers worth a book value of $1.9 billion on the market in April. The venture's decision immediately sparked heated discussion throughout the commercial real estate industry: Why put these assets on the market when valuations are so depressed? And perhaps more importantly, will they actually trade?
I am frustrated by the calls I get where business owners lament that there is no financing available to purchase commercial property. It's simply not true. In fact, my one man commercial mortgage brokerage has closed 3 transactions this month alone.
In reality the number of completed commercial loan transactions is down significantly from last year as is the dollar value of commercial loan closings.
The key point is that there are still lenders aggressively seeking loans. The sweet spot at the moment is owner occupied property where a business owner purchases or refinances the property from which they operate their business.
I can secure upwards of 90% financing for these properties using government backed loan programs. I know the process and which lenders are actively closing transactions in specific regions and for specific property types.
Commercial lending is down but lending for your specific project is likely still available...if you know where to look and how to navigate the waters of government backed (SBA-USDA-FHA) loan programs.
Call or email Ken Kaplan 215-230-1885 to discuss your loan scenario at no cost or obligation.
Thenks to the recently passed stimulus bill, all fees associated with SBA loans have been temporarily waived! That is a substantial savings for our borrowers. This measure is only going to last until the money allocated for the waived fees is used up, so give us a call and let us help you get your piece of the stimulus pie!
Elimination of fees and increased SBA Guaranty has lenders increasing activity. But the real story is the entreprenuer. Quality deals have lenders excited about making loans.
Harvey Green, of Marcus & Millichap Real Estate Investment Services, and Nicholas Schorsch, of American Realty Capital, discuss commercial real estate.
If you have an investment horizon of 3 to 5 years this market presents some great purchse opportunities. There are a lot of great properties with distressed sellers...financing is available and now may be a great time to act.
For the past two hundred years, fortunes have been made and lost in the commercial real estate business in the United States. Once again, as in previous real estate cycles, the markets will adjust and will turn around. Opportunities will abound and the new "Commercial Real Estate Business" will begin.
This is a list of banks who took TARP Funds, including the amount of money they took and plotting them on a Google map. Interesting. Glad my lenders are'nt amoung those listed!
Article discusses why the second half of 2009 is a great time for business owners to consider purchasing commercial property from which to opwrate their business.
The nation's retail market posted negative quarterly net absorption for the first time, along with the highest vacancy and availability rates, since CoStar Group began tracking retail trends in 2000, according to the Bethesda, MD-based company's first-quarter 2009 retail review and forecast.
As more space hits the market, rents are declining and property values are dropping. This creates opportunities for small business owners to purchase property from which to run their business at outstanding historical values.
This is our third monthly survey. Positive trends in lending are clearly seen. The charts included inthis report appear to show that a “bottom” has been hit and a recovery may be just around the corner.It is safe to say that the SBA Stimulus “ARRA” is working! The second fiscal quarter shouldcontinue to build a strong bottom and, in turn, allow for strong loan growth in the second half of thisyear.
Marcus & Millichap 2009 Real Estate Investment Outlook Excellent Analysis - check it out!
Apr 14, 2009 - CRE News
Asking rents at small retail properties fell a whopping 3.4 percent in the first quarter to a national average of $17.85/sf, according to Boxwood Means Inc. Rents are now down 9.3 percent from a year ago.
The first-quarter decline is the greatest since at least 2006 and a clear indication that properties with less than 50,000 square feet are struggling much more than larger retail facilities, according to the Stamford, Conn., research firm. The properties covered, which range from strip centers to stand-alone shops, are each under 50,000 sf and average 13,500 sf.
Shopping malls, meanwhile saw a 1.2 percent decline, to $39/99/sf, in their asking rents during the first quarter, according to Reis Inc., while shopping centers saw a 60 basis point drop to $19.04/sf.
While the performance of larger shopping centers and malls has been hurt by downsizing among national retail tenants, smaller retail properties typically lease to local retailers. Those tenants are less well-capitalized and even more likely to scale back or close shop during economic downturns, said Randy Fuchs, principal of Boxwood.
Owners of small properties are also less well-capitalized than their larger property counterparts. The retail properties covered by the Boxwood research typically trade hands for less than $10 million.
Within the small retail sector, street properties, often tenanted by the sellers of higher-priced, specialty goods and services have suffered the largest rent drop. Their average asking rent of $17.85/sf dropped 3.7 percent in the first quarter and is down 10.2 percent from a year ago.
Shopping centers' average asking rent of $16.36/sf was down 2.9 percent for the quarter and 8.6 percent for the year.
Fuchs noted that small retail property performance typically tracks the performance of local housing markets.
Florida, which has among the weakest housing markets, is also home to some of the worst-performing small retail markets. Fort Meyers recorded the steepest quarterly drop in street retail rents at 12.7 percent, while the Melbourne/Palm Bay and Sarasota markets recorded the sharpest shopping center rental declines at 7.2 percent and 6 percent, respectively.
Source: Commercial Real Estate Direct http://www.crenews.com/
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