https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html The commercial mortgage insider blog highlights articles of interest from the commercial real estate sector. These quick reads will keep you in the know... en-us commercial mortgage Thu, 31 Oct 2024 09:32:34 -0400 Thu, 31 Oct 2024 09:32:34 -0400 fastcommercialmortgages.com https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Picking-the-RIGHT-SBA-Lender57ebefe48222e085420f9256378b0141The top 100 SBA lenders are diverse in terms of their capabilities, sizes, and specializations. They constantly evolve, with new lenders entering the scene and others exiting. K2 Commercial Finance works with many preferred lenders, demonstrating a tailored approach to choosing lenders based on the unique needs of each project. Here's the process: Understanding the SBA Market: The top 100 lenders made up 74.3% of all SBA 7(a) loans in fiscal 2024, out of 1,473 lenders. Experienced lenders are preferred, much like choosing a skilled surgeon. Diversity Among Lenders: The top 100 lenders vary widely; this year saw 15 new lenders. Lender preferences change over time based on their credit appetites. Deal Size Specializations: Lenders specialize in different deal sizes, from as low as $113,257 to as high as $2.6 million. Smaller deals are often SBA Express loans, while larger ones tend to be real estate transactions. Geographic Reach: Some lenders operate in only a couple of states, while others lend nationwide. The median reach is 19 states. Types of Lenders: The list includes FDIC-regulated banks, private lenders, and credit unions. Private lenders are more flexible with risky deals, while FDIC-regulated banks vary greatly in size, from $160 million to $3.5 trillion in assets. Accessing this information involves using publicly available SBA data and leveraging specific algorithms to identify the best lenders for each project. Thu, 31 Oct 2024 09:31:08 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#SBA-ANNOUNCES-2024-7A-GUARANTEE-FEE-EFFECTIVE-100120236e3531b93ec4bf2226a9e70fd7226d98SBA has announced its Guarantee Fee and Lender’s Annual Service Fee for the fiscal year beginning on October 1, 2023. The fees are effective for all SBA 7(a) loans approved between October 1, 2023 and September 30, 2024. All fees are based on the gross loan amount. This new fee structure is good news for borrowers with loan requests under $1,000,000. Please contact your Account Executive to run your loan numbers. The following is a summary of the fees. A link to the SBA Information Notice is provided below. Guarantee Fee For loans of $1,000,000 or less: 0.00% For loans of $1,000,001 to $2,000,000: 1.45% of the guaranteed portion of the loan up to and including $1,000,000, plus 1.70% of the guaranteed portion of the loan over $1,000,000 For loans of $2,000,001 and greater: 3.50% of the guaranteed portion of the loan up to and including $1,000,000, plus 3.75% of the guaranteed portion of the loan over $1,000,000 Wed, 6 Sep 2023 09:56:50 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Harder-for-Borrowers-to-Secure-a-Loan-in-February-Credit-Availability-Hits-Multi-Year-Lows1f6698150378ee8b915b88a0acf67bfeWe are just at the beginning of the reset in the market. A decline in credit availability is just the tip of the iceberg. With the recent blow up in small banks and now spreading to some large institutions, look for credit availability to continue to decline. In the short term, real estate closing volumes will decline, but the real pain will be in the long term with a substantial reset in prices as credit continues to dry up which will ultimately lead to a cooling economy. Tue, 28 Mar 2023 11:21:22 -0400 https://www.fastcommercialmortgages.com/sba_loan_programs.html65bcda0ea57a145fdae4773e3c24a02aApproval rates - Recent bank collapses alongside another increase in interest rates continues to shift the industry to increasingly stringent lending standards. With higher credit requirements, fewer businesses will qualify to obtain a loan in the full requested amount. As lenders slow their loan approval rates, small businesses may need to wait longer to receive any loan amounts for which they receive approval. Credit Cards Average 20% interest - Credit card interest rates have reached an average of 20%. Since most credit cards have a variable interest rate, yesterday’s rate increase directly impacts credit card interest rates. 20% rates reflect an all-time high from March 2022, when the rates hovered at 16.25%. For small businesses that have relied upon credit cards, the interest rate on the cards creates an even larger challenge for businesses that struggle with cash flow. Inflation Challenges - The Fed’s decision to raise interest rates yesterday is an indication inflation is still a major factor with which to contend. Keeping business growth in pace with the rate of inflation has been exceptionally difficult. Owners would need to grow business profits by 6.0% annually to match inflation rates. For those whose businesses have not grown as rapidly, owners are left to cover the additional cost of goods. To face adverse market conditions, business owners are urged to secure capital before they need it. SBA loans offer a haven to entrepreneurs. Since SBA loans’ underwriting and credit requirements do not shift with market conditions, they continue to provide the lowest interest rate loans with low monthly payments. Thu, 23 Mar 2023 11:59:46 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Small-Business-Loan-Approvals-at-Big-Banks-Slip-to-142-in-February-202309dbcd510594542553561612dba2dd0eAccording to the latest Biz2Credit‘s Small Business Lending Index, small business loan approval percentages at big banks slipped again in February, falling from 14.4% in January to 14.2%. This marks the ninth consecutive month in which big bank approval percentages have declined. Meanwhile, approval rates of business loan applications at small banks also dropped in February to 21.3%, down one-tenth of a percent from 21.4% in January 2023. Wed, 15 Mar 2023 11:29:43 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#EIDL-Loans-are-an-IOU-to-the-US-Governmentf913d30f3a9259c73e79d2b9720cdbd7Last month, the Wall Street Journal published an article titled "Pandemic Loans Are Coming Due, But Some Businesses Aren't Ready to Repay." As those payments come due, some business owners argue that they did not understand the terms of the loans and that as the economy weakens, they are not well positioned to repay the loans. Business owners must understand that these loans are an IOU to the U.S. government. Thu, 5 Jan 2023 09:37:02 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#How-to-Get-Your-Mortgage-Approved-While-Working-as-a-Freelancer5fac8efc0db1ef52ad8f97f2a37e7e73The key to being approved for a mortgage as a self-employed individual is to provide the bank with ample evidence regarding your financial stability. Being the expert in mortgages, K2 Commercial Finance will provide you with all the information about mortgage options at your disposal and how to deal with lenders. Fri, 18 Mar 2022 10:58:51 -0400 https://www.fastcommercialmortgages.com/498d8f37cdcfb9cde23c13314f8c51e7Get Fast Commercial Mortgages on all property types. SBA Loans and Stated Income Loans are our specialty. NO Upfront Fees. Fri, 18 Feb 2022 13:25:38 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Commercial-Real-Estate-Lending-Surges-in-Q344ced37c69c5101d29da6c864c93c7cbCommercial real estate lending activity surged in the third quarter of 2021, reflecting a healthy rebound of property acquisitions activity, according to the latest research from CBRE. Tue, 16 Nov 2021 13:15:49 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#CRE-Prices-hit-all-time-highs64ac95d389f9ba57fa36bcc347e5428bThe Green Street Commercial Property Price Index increased 0.4% in October, continuing a run of all-time highs, the Newport Beach-CA advisory firm reported Thursday. The all-property index has increased 18% this year and is now 9% higher than it was before the pandemic. Fri, 5 Nov 2021 12:53:17 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blogf05362454b78fcaeb80ca0a2190e9215Everyone should remember that the Covid related benefits for traditional SBA lending expire on September 30th. The benefits include no guarantee fees, and the government will make the first three months of payments on your loan up to $9,000 per month. SBA loans can be uses for purchasing or refinancing owner-occupied real estate, working capital, debt restricting, partner buyouts, startups, and or acquiring a business. Keep in mind that the September 30th deadline is for a loan to be funded. So to take advantage of the benefits, the clock is ticking to get your application in. Wed, 7 Jul 2021 00:00:00 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#SBA-Loan-Sale---Time-is-Running-Out0443e37b503be0d55ea491d9d490ec91Everyone should remember that the Covid related benefits for traditional SBA lending expire on September 30th. The benefits include no guarantee fees, and the government will make the first three months of payments on your loan up to $9,000 per month. SBA loans can be uses for purchasing or refinancing owner-occupied real estate, working capital, debt restricting, partner buyouts, startups, and or acquiring a business. Keep in mind that the September 30th deadline is for a loan to be funded. So to take advantage of the benefits, the clock is ticking to get your application in. Wed, 7 Jul 2021 00:00:00 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Mobile-Home-Park-Business-is-Booming384260fc69abe08e64fecb52a3e89457Mobile Home Parks have enjoyed high occupancy and strong rental income growth throughout 2020. This is creating high investment demand for parks of all sizes. K2 Commercial Finance is familiar with multiple loan programs to secure funding for mobile home park acquisitions. Thu, 25 Mar 2021 10:49:34 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#SBA-Loan-Payment-Credite21bf2ae0e934d4009ae935bc7d00dc2The SBA has announced that due to budgetary constraints, new SBA borrowers between now and the end of September will get three months of payment relief (up to $9K a month) instead of six months. The economic relief act allocated $3.5 B for these payments, which the SBA believes will not cover six months of payments. While this reduction is a big disappointment for many of our borrowers, the remaining CARES Act subsidies are significant. The SBA Guarantee Fee of up to 3% is still being waived in addition to the three months of payments being made for new borrowers on loans that close and fully fund between now and September 27. K2 Commercial Finance is prepared to help qualified business borrowers navigate the loan process and take advantage of the SBA incentives. Let's get America back to work! Wed, 17 Feb 2021 11:29:50 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Moodys-Vacancy-Peaks-and-Rent-Declines-Still-to-Come-for-US-Officef852f7a721d1443f47004f7870e8d4e7The U.S. office sector will suffer more in 2021 than it did in 2020, says Moody’s Analytics. The Moody’s subsidiary forecasts the national vacancy rate rising to 19.4% this year, surpassing the previous high of 17.6% from 2010 and then holding steady in 2022. Although effective rents in this sector fell only 0.7% in 2020, the average effective office rent is projected to decline by 7.5% in 2021 before steadying in 2022, with the Bay Area and New York hit especially hard. “We do not expect average effective office rents to reach their pre-pandemic levels until 2026,” according to Moody’s Analytics. Offering a glimmer of positive news, Barbara Denham, senior CRE economist at Moody’s Analytics, said, “Though we expect the office sector will suffer more severely in 2021 than it did in 2020, the vaccine rollout brings hope for more in-person business later this year and into 2022.” Wed, 3 Feb 2021 12:13:54 -0500 https://www.fastcommercialmortgages.com/Payroll_Protection_Loan.html19de6564fd85b9e769580b01d165e3b1Payroll Protection Loans (PPP Loans) are available to help small businesses cover expenses during this difficult time. They are free to apply for. Mon, 28 Dec 2020 13:43:13 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Flex-Office-Sector-Proves-Resilient-in-Downturn-CBREc7c954d9370895cff6f1237712c14e34With companies everywhere adjusting to new workplace trends towards working from home, office property vacancies in urban areas are predictably on the rise. CBRE says the outlook for flex office now, however, is optimistic: A recent CBRE survey of 77 major companies across the globe found that 86% anticipate using flex space as a key part of their real estate strategies. “This downturn has sparked flex office to become a strong alternative to traditional leases for many office-using companies,” said Julie Whelan, CBRE global head of occupier research. “That is in large part because flex space can provide companies the agility to accommodate a workforce that values more choice over where and how they work.” Fri, 18 Dec 2020 12:32:02 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Flex-Office-Sector-Proves-Resilient-in-Downturn-CBREc7c954d9370895cff6f1237712c14e34-cpWith companies everywhere adjusting to new workplace trends towards working from home, office property vacancies in urban areas are predictably on the rise. CBRE says the outlook for flex office now, however, is optimistic: A recent CBRE survey of 77 major companies across the globe found that 86% anticipate using flex space as a key part of their real estate strategies. “This downturn has sparked flex office to become a strong alternative to traditional leases for many office-using companies,” said Julie Whelan, CBRE global head of occupier research. “That is in large part because flex space can provide companies the agility to accommodate a workforce that values more choice over where and how they work.” Fri, 18 Dec 2020 12:31:58 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Where-Are-We-Where-Are-We-Headed-CRE-Industry-Experts-Opine-on-2020b86da806ff03395d93e9a91d21346a16Commercial Real Estate mortgage industry experts have varying points of view on what the coming months may hold for borrowers. While the only certain answer is "time will tell," Ken Kaplan of K2 Commercial Finance has identified lenders actively seeking transactions of all sizes. "The key is matching each loan transaction with the most appropriate loan structure and lender." Sun, 13 Dec 2020 11:02:43 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Slowing-Job-Growth-Highlights-Need-for-Stimulus-Says-Marcus-MIllichapc04bf79c49dbaf9c1501e3f6a2e7eb6bThe slowing pace of job creation, coupled with rising COVID-19 cases and a growing number of long-term unemployed workers, emphasizes the importance of additional stimulus, Marcus & Millichap says in a Research Brief. “Whether passed by the current or incoming Congress, such legislation will be critical to buttressing the economy until vaccines can be widely distributed,” according to Marcus & Millichap. “The recent rollback in Pfizer’s production schedule highlights the acute manufacturing and logistical complications that may extend the time before which most people will have access to a vaccine.” November’s pace of hiring, while above the historical average, nonetheless was the slowest of the pandemic period and is tied to the cessation of fiscal stimulus and a “major resurgence” in COVID-19 infections, says Marcus &Millichap. “The return of stricter lockdown requirements will weigh on overall employment growth through year-end,” according to the Research Brief. Tue, 8 Dec 2020 16:06:23 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Real-Estate-Roundtable-Survey-Sees-Better-Conditions-for-20214e4a5cbaa2df68e40af7109166c641b4Commercial real estate executives expressed a modest increase in optimism about market conditions amid the ongoing pandemic, according to The Real Estate Roundtable’s Q4 Economic Sentiment Index. Most respondents to the annual survey also noted that general conditions one year from now will be either “somewhat better” or “much better” Survey respondents noted especially challenging economic conditions in the hospitality and retail sectors; market uncertainty associated with future office space use; somewhat stable multifamily markets’ and relatively stronger industrial and life science markets. Fri, 4 Dec 2020 14:48:17 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Lending-Volume-Picks-Up-Skews-Toward-Multifamily-and-Industrial-multifamilye15b5247effe9c2e9eb16b3f58c7e96dThe commercial real estate lending landscape in the final weeks of 2020 has “vastly improved” compared to the onset of the pandemic, Marcus & Millichap says in a special report. However, for some lenders the market has tilted toward multifamily and industrial, while lending for office and retail has become more selective. Tue, 1 Dec 2020 14:13:31 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Shopping-Center-Trends-Stay-the-Course-or-Pivot382fd43361a15a241005fd38aedeb69dI found a fantastic resource to help analyze retail commercial real estate locations. It's Placer.ai and later this week they are having a free webinar on Retail Shopping Center Trends. In the webinar they will break down some of the biggest trends impacting shopping centers, malls and outlet centers. We will leverage location analytics to understand which have real staying power and which will likely pass as COVID’s impact recedes. Sign up for the webinar and check out the other useful resources they make available. Mon, 23 Nov 2020 13:47:22 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#CRE-Developers-Tips-on-Keeping-Momentum-During-Downturns38b2b753d6b8c039b2d178f399c41e94“The current recession won’t last forever, so seize this opportunity to play the long game. We all know real estate can be an excellent long-term investment. Our sector isn’t intimately tied to daily stock market swings.” “Developers should keep a laser focus on markets with high growth potential … The bottom line is developers who play the long game have time to ride out occasional market upheaval.” Sun, 22 Nov 2020 14:56:53 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Resilient-Amid-a-Global-Pandemic-How-Industrial-Continues-to-Thrive---WD-Industrial-Market-Reportabf93f3cc0f79a5ea45722073a9ac791Despite the impact of the pandemic on many areas within commercial real estate, industrial assets continue to attract interest as a favored sector of many lenders and investors. The industrial market is outperforming others throughout this period of disruption thanks to the increase in e-commerce and a continued need for last mile distribution and third-party logistics centers. More outstanding research from Walker and Dunlop. If you are looking to purchase or refinance an industrial property, call Ken Kaplan at 215-230-1885. Fri, 20 Nov 2020 14:13:30 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Rising-CRE-Defaults-Prelude-to-Bank-Failuresddb07dd604e98032d6068afda8e3db94The stress of troubled loans is mounting throughout the banking sector. Non performing loans are a particular challenge for small and mid sized community banks, as government support for the local business owners is phasing out. K2 Commercial Finance works with many alternative lenders who are still actively looking for new lending opportunities. Call Ken to discuss your needs. 215-230-1885 Fri, 20 Nov 2020 09:57:04 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#2020-Women-in-Real-Estate-Awards---Connect-CRE16f698a165440d20c23064f5c2c254bcAfter careful consideration, we chose 100-plus women with achievements and inspirational stories who have reached respected positions of leadership and play key mentorship roles for others in commercial real estate. We chose 10 National winners, as well as leaders from each of the 10 areas covered by our regional newsletters: California, Texas, New York, Chicago, Atlanta, Boston, Florida, Seattle, Phoenix and Washington, DC. Tue, 17 Nov 2020 15:37:44 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Commercial-Real-Estate-Showing-Strength-in-Q438fc99a0c01e9b91520e8694d9c893adCommercial real estate lending for apartment and industrial properties is beginning to normalize. Several lenders are returning to the market and application volume is picking back up to pre COVID 19 levels. Hospitality and retail properties remain very difficult to finance but K2 Commercial Finance is able to help place these loans as well. Tue, 17 Nov 2020 12:00:56 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#3-Reasons-Its-Important-to-Consider-Safely-Returning-to-the-Workplaced96437b1bdc3628071f43d99d5747851Here is a statistic that is hard to believe: Remote working accounted for only 3.4% of the total U.S. workforce population prior to COVID-19, according to Gallup. In fact, many companies, including tech companies such as Yahoo!, famously banned working from home prior to the pandemic because the company craved “increased productivity and a more connected company culture.” Thu, 5 Nov 2020 12:48:21 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Commercial-Loans-Down-47-YoY-in-Q3-202011e66a06c2a077b776817547da14a832According to the Mortgage Bankers Assn,third quarter commercial mortgage originations were down 47% year over year. The good news is K2 Commercial Finance is in a position to place almost any viable commercial real estate mortgage request. Wed, 4 Nov 2020 12:07:17 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Hotel-Motel-Financing-Availabled1f8446f9f30a86327ed4e6bf2d12121Hotel and motels are facing challenging times in the wake of COVID 19 related travel interruptions. Occupancy rates at many rural and suburban properties are starting to stabilize while urban locations have up to 50% more vacancy than last year's holiday season. Financing is still available for flagged hotel acquisition or refinancing. The latest trend in hospitality is repositioning older, classic motels for retro hungry travelers. Now may be a great time to reposition a challenged property. Tue, 3 Nov 2020 11:06:35 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Declining-Rents-And-Investor-Concern-Forcing-Mixed-Use-Developers-To-Rethink-Retail5bc498db3551fba4ad2db33b8b0f629cThe twin crises of e-commerce’s rise and the coronavirus pandemic hit retailers hard, diminishing their reputation among investors and lenders. But mixed-use developers say whatever its current troubles, retail will always be needed to create properties appealing to the widest possible range of tenants, and it still plays a key role in their work. Thu, 29 Oct 2020 14:31:22 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#The-Real-Estate-Problem-That-Could-Delay-The-Coronavirus-Vaccine-Rolloute45d2bd398d411cf9380d8491a9717c3As cases of the coronavirus reach new all-time highs, the production and distribution of an effective vaccine is the moment most of the world is waiting for before life can return to some sort of normal. But as the race for a vaccine continues, a real estate problem has emerged that could slow its rollout, potentially delaying any real economic recovery in the process. Thu, 29 Oct 2020 14:23:00 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Property-Pricing-Gains-Powered-by-Industrial-and-Apartments-multifamily-Property-Pricing-Gains-Powered-by-Industrial-and-Apartments27770d82160067390d94ca8e94eb8813U.S. commercial real estate pricing grew at an annual rate of 1.4% in September, Real Capital Analytics reported. Continued gains in the apartment and industrial sectors balanced out declines in retail and office prices, according to the latest RCA CPPI: US summary report. Wed, 28 Oct 2020 14:03:50 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Loans-to-Solve-Tax-Problems4c0212ff6093075e4e47864c2b1acd07Many 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. Mon, 26 Oct 2020 13:17:00 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#6-Strategies-to-Improve-Long-Term-Decisions-in-Uncertain-CRE-Markets73a69399b99d78cc0b92abf11f7c07aeThe concept that business and real estate needs are going to change has always been present. COVID-19 has simply amplified and accelerated that evolution. While it’s clear that no one can predict the future, it is possible to make educated decisions in regard to real estate. Mon, 26 Oct 2020 12:36:05 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Pandemic-Means-Winners-and-Losers-among-Property-Typesb96632b28eb7d7fd675078afdae92afdUnlike previous economic crises, this pandemic has impacted the commercial real estate sector very unevenly. Warehouse and Industrial properties are enjoying high demand as shoppers move online and distribution requirements boom. Restaurant, office and retail spaces, especially in dense business districts, are being decimated. Hotel, motel and hospitality occupancy levels are down nearly 50% year over year...but many RV Parks are turning away visitors. This uneven distribution of impact is unusual but creates opportunity for investors and business owners. Contact K2 Commercial Finance for help navigating this challenging market. We can help secure financing to acquire distressed commercial real estate or to refinance away from existing financing. Fri, 9 Oct 2020 16:04:55 -0400 https://www.fastcommercialmortgages.com/Extra_Sq_Ft757abc16192470a44a7f8c4536e3696bWhen small businesses consider commercial financing to buy their own building, there are a lot of things to think about. Obviously, things like location, accessibility, building condition and space are important, but there are an increasing number of small business owners deciding to go the extra square foot. These owners are buying or constructing buildings that contain additional space to lease out to other tenants. As a result, they are not just building owners, but also investors as well. This is a growing trend that we have experienced largely with those clients seeking office building financing or retail property loans. These borrowers have the foresight to finance and buy more space than they need in order to lease it out. Sometimes this can be as small as an additional 500 square foot up to over 1,000 square feet. In certain situations, building owners can make almost enough from their additional space to cover a substantial amount of their commercial mortgage. In the retail sector, this trend has proven quite valuable. It is not uncommon to find a convenience store owner build additional space that can be used for smaller tenants such as store space for a cleaners or for a liquor store. Some have even gone so far to obtain strip shopping center construction loans in order to construct something a bit larger. These owners also have control in who co-tenants the building with them so they can build a synergy with their fellow tenants. The same is true in the office sector when attorneys or accountants build or buy a larger building in order to lease out the additional space. This not only creates additional revenue but the opportunity to create synergy by leasing that spaces to businesses that compliment or enhances their own, such as a real estate company leasing out space to a title company. When it comes to seeking office building financing or shopping center financing, creating an income stream with additional space can help in obtaining a commercial mortgage. It can create stronger confidence for the lender in the borrower’s ability to pay back the loan. It is most beneficial when a small businesses owner has a tenant or two already lined up for the additional space. A letter of intent from a potential tenant will further cement confidence in the loan for the lender. It may also enable the borrower to obtain more favorable terms due to the promised income stream that will be generated. Tue, 1 Dec 2015 00:00:00 -0500 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Best-Commercial-Mortgage-Rates-of-2014e1029062bf170a7a2e6c0cdeb827703bToo 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. Thu, 17 Apr 2014 16:31:23 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Defaults-on-Apartment-Loans-Rising5526c54902462eff5fbdff764f2c1284Although defaults on Apartment Building loans are rising, K2 Commercial Finance has lenders ready to make apartment building loans. Mon, 24 May 2010 08:11:00 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#SBA-Stimulus-Packagecb2aec5c21aadd72c40f86733ded2c57Earlier 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. Mon, 21 Sep 2009 10:38:12 -0400 https://www.fastcommercialmortgages.com/reasons-to-buy.htmld3d3937c49678b4ac36a3cfbf05a10ceThis article offers 7 compelling reasons why the second half of 2009 offers a great opportunity for businesses to purchase property and stor paying rent. Thu, 18 Jun 2009 15:36:09 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Despite-Economy-CRE-Portfolios-Performing-Adequately-for-Banksa9b95b225cc7fd5ee7b00142733a7b44Recession 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. Thu, 21 May 2009 07:27:35 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Investors-savor-higher-cap-rates-and-a-lack-of-competition212c587e449dfc89b9c9fad8d1033c8cIn 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? Wed, 20 May 2009 09:57:37 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Commercial-Loans-Still-Available8b2567959c037ac8e2d579ee8480d0baI 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. Thu, 14 May 2009 09:39:21 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#SBA-has-Eliminated-Fees1e3b3160e68a70f7afcbfd24d56f7d44Thenks 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! Mon, 4 May 2009 11:56:16 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#SBA-Stimulus-plans-have-lenders-active-againbd78f5c800cf6117343d96e66b2a3a48Elimination 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. Sun, 3 May 2009 11:55:07 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Commercial-Real-Estate-Comeback85e45b65caf5eafa1031bcb69cfe248aHarvey 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. Wed, 29 Apr 2009 10:03:21 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#Commercial-real-estate-business-may-look-different-in-the-future3b38b30602fb7996df8bac0445e565deFor 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. Sat, 25 Apr 2009 16:41:51 -0400 https://www.fastcommercialmortgages.com/commercial-mortgage-blog.html#List-of-Banks-who-Took-TARP-Fundse1c9a71c18cb68a1f2b5981793a42cd0This 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! Fri, 24 Apr 2009 12:15:13 -0400 https://www.fastcommercialmortgages.com/commercial-article.htmlf9b83ccd7f48346b1cabdfbfb437821fArticle 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. Thu, 23 Apr 2009 12:18:22 -0400