We are a private money lender AND large commercial mortgage broker shop. We look at over 100 deals a month, talk to a ton of lenders and sources and have a real feel for the market-not from some statistician spouting facts but from looking at loans for real clients, all day, every day.
If you want your commercial loan closed, give me a CALL TODAY @ 512-650-8630.
As such, we get a great "ground level" feel for trends in lending for both commercial loans and business only loans. Here are some things we are seeing as we head into 2017:
- Government backed programs-whether SBA, FHA, or FNMA/Freddie continue to be very aggressive with a bunch of lenders crowded into the space. With SBA in particular we have a wide range of options for a client EVEN IF ONE OF THE BIG BANKS HAS SAID NO. We will close 7 Franchise loans this month, all SBA BUSINESS ONLY START-UPS and ALL were denied by other SBA lenders...there are options for businesses if they get denied by one lender
- In fact, that may be the biggest trend this year....there are options for borrowers if they get denied by one of the big banks or lenders. Often, these options are the same or similar in rates. We are closing 2 investor loans on retail centers that had tenant or occupancy mixes that were not "good enough" for the big banks and we are closing them with long term, low fixed interest rates. Just miss options are readily available
- Alternative funding sources and private money sources are continuing to get aggressive to pick up deals that are not good enough for traditional banks leaving even more options available. These rates tend to be higher than conventional but much less than private money. Cash flowing deals that have low occupancy, or have no income showing on the tax returns can often qualify for these alternative funding sources and lock up fixed rates and 30 year amortizations.
Give me a CALL TODAY @ 512-650-8630.
- Construction lending, however, is bucking the above trends. Most ground up construction loans are looking to stabilize in 4-5 years and the big money is beginning to scale back a little in this area. Despite a tremendous amount of business optimism over Donald Trump's incoming presidency, the big money is still scaling back some on construction lending. Lenders are doing loans at 5% lower leverage than a year ago on average (if a year ago they were going to 75% Loan To Cost on the building, they are now going 70% on average).
- There is a TON of money flooding into the ACH and Merchant Cash advance space for small businesses. This opens a plethora of options for businesses to get cash based on their cash flow but businesses should be wary when tapping these types of sources as they are quite expensive and often it becomes a cycle of borrowing that is tough to get out of.
So, in general, lenders are heading into 2017 very aggressive, looking for loans and trying to build volume. They are generally optimistic although rising rates may be a concern if it ebbs financing some. Most are very optimistic about Trump's Presidency and most feel that it will be good for Commercial Real Estate and business in general. WE ARE ABOUT TO HAVE OUR BIGGEST CLOSING MONTH EVER THIS MONTH. 2017 is starting off strong and I look forward to a very strong year. Almost all our closings were deals that got denied somewhere else first, then they came to us.
When the banks say no, we say YES! And often at the same rates!
If you or someone you know needs financing, give me a call at 512-354-5949. Here is to a great 2017!
Wishing You the Best,
Karen Schimpf
Commercial Capital, Ltd.
http://www.ApplyCommercialLoans.com
P.S. IF you need help getting those commercial loans closed give me a call at 512-354-5949. I charge NOTHING to underwrite any deal and if the deal is fundable, I can usually kick out terms in 48 hours. SO give Karen Schimpf a call for all your commercial and SBA lending needs at 512-354-5949.
Wishing You the Best,
Karen Schimpf
Commercial Capital, Ltd.
http://www.ApplyCommercialLoans.com
P.S. IF you need help getting those commercial loans closed give me a call at 512-354-5949. I charge NOTHING to underwrite any deal and if the deal is fundable, I can usually kick out terms in 48 hours. SO give Karen Schimpf a call for all your commercial and SBA lending needs at 512-354-5949.
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