Adjustable Rate Mortgages, mortgage—401 K 2013 (Flickr.com)

Why Adjustable Rate Mortgages on Apartments Are Risky For the Long Term

We know that many investors and property owners have ARM’s for their apartments, either through purchase or the cash flow was important at that time.

When is the right time to consider moving into a fixed rate loan? Here are some reasons to consider….

1. When you believe that interest rates are going to go up impacting the bottom line.
2. Your loan is maturing.
3. You have found a lending source that provides a better than average fixed rate.

Here are some of the criteria for looking for a new apartment loan

1. Find a lender who has a track record with apartments.
2. How long would the term be? Anything over 20 years is great.
3. Does your bank provide loans through insurance companies or pension funds?
4. Is it possible for you to obtain a non recourse loan, that is where you are not personally liable, only the property is at risk.

Please share and like this post. For more information, please visit us at Newland Commercial Funding for great apartment loans. Be sure to call us at 310 363 7712.

Related Information

Investors move back into apartments North Bay Business Journal - North Bay Business Journal. Investors move back into apartments. North Bay Business Journal. The goal is to take advantage of currently low loan interest rates in the 3 percent to mid-4 percent range to have more than 5 percent cash-on-cash returns and long-term returns of 15 percent to 20 percent from rents and sale proceeds. I take a lot of.

Average 30-Year Fixed-Rate Mortgage Up a Smidgen – adjustable rate mortgage -  A year ago at this time the 15-year FRM averaged 3.19 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage ARM averaged 2.64 percent this week with an average 0.5 point the same as last week. A year ago.

Incoming search terms:

• whys an adjustable rate mortgage ridky

Share/Bookmark

This article, published by Bloomberg Business Week and written by John Tozzi, illustrates problems of well meaning legislation intended to to assist lenders with small business lending funding.

Learn Why Community Banks Are Slow to Provide Funding

Community banks, Greater Pittsburgh Community Food Bank 30th Annive…—DrivingtheNortheast (Flickr.com)

Nearly three years ago, in his State of the Union address, President Obama announced a plan to use $30 billion in money repaid by Wall Street’s bailed-out banks to help community lenders make loans to Main Street companies.

The plan, part of the Small Business Jobs Act, passed along party lines in the Democratic Congress that summer. At the time, the lobby for community banks breathlessly suggested that banks could leverage the capital to make as much as $300 billion in new loans to small businesses.

The results have been much more tepid. The program, known as the Small Business Lending Fund, finally started moving money into banks last year. Only $4 billion of the $30 billion available was disbursed. The banks that got it did increase their small business loans, by $6.7 billion, according to the Treasury Department.

But the majority of the money that the government invested—some $2.2 billion—actually went to help community banks repay their earlier government bailouts. (Remember, it wasn’t just Wall Street that got rescued four years ago.) And while those lenders did modestly increase their small business loans, most of the help that reached Main Street came from banks that didn’t use the new money to repay bailouts, a Bloomberg Businessweek analysis of Treasury data (pdf) shows.

The recovery in the past two years has been slower than most expected. Lending by banks in the program picked up this year, increasing by $1.5 billion in the second quarter alone. Maybe in time it will look like a better deal. One year in, though, it appears to have helped banks far more than it has helped businesses.

Original story here.

OK, so things haven’t panned out as well for loans from Community Banks from this government program. And here is another reason to work with Newland Commercial Funding as we are a direct lender with a  varietyof lending options and including Community Banks in our lending group for the very best loan options..

Comments welcome, please share and like this post. If you are that doer and want to look at various funding options, please consider us for a broad spectrum of funding solutions.

RELATED INFORMATION

Community Banks Have Unique Challenges Opportunities Bank

A panel discussion at BAI Retail Delivery 2012 focused on successful strategies for community banks.…

Top of the List Largest Community Banks in the Triad Bizjournals.com blog

Top of the List Largest Community Banks in the Triad. Bizjournals.com blog The Business Journal has all the answers in this week’s List which features the largest community banks ranked by deposits in the Triad. Although the complete list in the print edition includes the top 25 in the Triad you can click through the.…

Community bank

In the United States community banks are defined as independent banks and savings institutions holding companies with aggregate assets.…

Share/Bookmark

In a far reaching interview with Chauncey Stalwell by Jonathan Lasner and Jeff Collins of First Team Real Estate as published in the OC Register, digs into one experts thoughts on what the future holds for where commercial real estate following the election in November. Chauncey is being interviewed, Us the interviewers.

Commercial Real Estate – What’s in Store for Us: A Post Election Analysis

Commercial real estate—MoneyBlogNewz (Flickr.com)

Chauncey: The commercial real estate market seems to be on the upswing in major markets, while recovery in other markets seems to be progressing on a slower basis, but my sense is that overall the market is moving in a positive direction. Unlike the residential real estate market (where new housing starts drive things such as constructionemployment and consumer purchases, for example), commercial real estate typically is a lagging indicator of the overall economy, so assuming the overall economy improves, commercial real estate will continue to improve. In Los Angeles and related submarkets (e.g., Santa Monica and Culver City), tech related, entertainment and other “creative space” users have been demand drivers, for example. Orange County is seeing some positive signs as well, although I am not sure the recovery is moving along as fast as in other areas (and certainly not as fast or as strongly as most would like).

Us: I hear you think that will all change after the election? How .. and why?

Chauncey: I predict commercial real estate, and perhaps the overall economy, will see a “bounce” after the election no matter which candidate ends up as president. Much of the uncertainty on how things will shake out on taxes (especially corporate taxes and capital gains), as well as financial institution regulation (e.g., Dodd-Frank, consumer protections) and healthcare reform/”Obamacare” and whether they will remain in place (if the current administration is re-elected) or will be repealed or weakened (if Romney is elected) theoretically will be lessened come the first week of November. And I believe this uncertainty is inhibiting private sector decision makers in many aspects of the overall economy, especially with respect to employment. For example, companies that have been holding off on hiring, not knowing what their tax and healthcare expenses for current employees and further hires may be, will be better able to plan once the election is decided. One can argue whether victory by one candidate or another will encourage/discourage more such hiring, but in either event I foresee delayed decisions ultimately being made, and those decisions typically will affect commercial real estate decisions as well—such as needs for office space and industrial and manufacturing properties, for example.

Us: What segments are will benefit the most from this boost — office, industrial, retail, etc … and what won’t?

Original story here.

Everyone else is getting a “bounce” these days, so seriously, will there be one in commercial real estate? Keep your eyes and ears open. Get in (or out if you are selling) when you feel most comfortable.

And when you are ready, please visit us at Newland Commercial Funding for a full range of commercial loan options. Please like and share this post. Comments welcome.

RELATED INFORMATION

MetLife Forming Third-Party Real Estate Management Business

Seeking to leverage its extensive investment in real estate commercial mortgages and private bonds MetLife Inc. plans to launch a third-party asset management business that will arrange and manage investments in those.…

Ares Commercial Real Estate Corporation Closes 36 Million Financing The Herald HeraldOnline.com

Ares Commercial Real Estate Corporation Closes 36 Million Financing The Herald HeraldOnline.com. CHICAGO Ares Commercial Real Estate Corporation NYSE ACRE announced today that it closed a 36 million first mortgage loan commitment collateralized by a Class A office building located in Cincinnati’s central business district. The transaction Experts Gather to Examine State of Commercial Real Estate at Annual Trigild Melodika.net press release all 7 news articles.…

Commercial Real Estate Women

Commercial Real Estate Women CREW Network is a North American business networking organization dedicated to the advancement of women in.…

Share/Bookmark

The following article, written by Paul Marrion of Crains Business News takes a a look at increase in government backed SBA loans helping improve the economy.

SBA Loans – See How It Is Working In Illinois

Sba loans, SBA Loan—thekirbster (Flickr.com)

Government-guaranteed small business loans are getting bigger, pushing loan volume in Illinois last year above $1 billion for the first time.

Lending backed by the U.S. Small Business Administration was up more than 2 percent in Illinois even though the number of loans was down almost 9 percent from the previous year’s record pace.

 That meant the average SBA-backed loan in Illinois grew 12 percent to $483,507.

 Growth was concentrated in the Certified Development Company (504) long-term loan program, which saw loan volume jump nearly 62 percent to $443 million in Illinois in the twelve months ending September 30. Illinois lenders made 544 loans under that program, up 32 percent.

 “This was a banner year for 504 loans, more than we’ve ever done,” said Judith Roussel, SBA’s Illinois District Director.

 The growth in 504 loans overshadowed a slowdown in the SBA’s other main program. So-called 7(a) loans declined in number and size last year in Illinois from the pace set in fiscal 2011 when the Small Business Jobs Act of 2010 mandated a waiver of fees for borrowers that year and increased the SBA guarantee to 90% of the loan amount.

 Original story here.

So, rates have remained low. There is commercial lending capital for SBA loans available with many, many resources available for those companies and individuals that need funding. Don’t forget, a successful business creates more jobs, benefiting all.

For more information on any aspect of SBA loans, be sure to contact us at Newland Commercial Funding, your one stop shop for commercial lending. We can take you from A-Z to assist you in getting your loan approved. And please like and share this information. Comments welcome!

RELATED INFORMTION

SBA loans dollars reach second largest amount in program history - SBA loan dollars reach second largest amount in program history. by Monica Mendoza. Published October 10,2012. Time posted 12 59 pm. Share this story Close this Window Bookmark and Share This Page. Save to Browser Favorites.…

NADCO Shares SBA 504 Refinancing Program Success over 2700 loans Sacramento Bee - NADCO Shares SBA 504 Refinancing Program Success over 2700 loans Sacramento Bee. MCLEAN Va. Oct. 11 2012 PRNewswire-USNewswire The National Association of Development Companies NADCO the trade association for more than 260 of the nation’s Certified Development Companies CDCs is highlighting the success of the.…

Small Business Administration - The Small Business Administration SBA is a United States government agency that SBA loans are made through banks credit unions and.…

Share/Bookmark

The following article, written by Alex Ferreras at the loansafe.org site, takes a look at how business are expanding with assistance of the SBA in today’s commercial market.

Low Commercial Lending Rates – Are You Missing Out?

Commercial Lending Rates – Loan Applications and Interest Rates—Forest2Market (Flickr.com)

A Visalia candy company is renovating a building in Oakhurst into it’s thirdretail location. A Fresno automotive-repair business bought its first property. And a downtown Fresno company that provides traffic signs for construction projects is searching for a bigger building.

“The reason why I went ahead and bit the bullet was the opportunity in the market,” said Bill Lebda of Fresno, who bought his first storefront and warehouse on Blackstone Avenue for his automotive business called Secure It New.

After years of waiting for the economy to recover, businesses that weathered the recession are ready to make a move, business experts and commercial brokers say. Their motivation: low commercial loan interest rates, affordable property prices and banks willing to lend.

So far this fiscal year, which ends Sept. 30, the SBA has approved more loans in its 504 loan program than in fiscal year 2011. The program is for business expansion and the purchase of property in Fresno and Tulare counties. The increase is small: 47 loans totaling nearly $13 million in Fresno and Tulare counties this year compared to 30 loans totaling $12.6 million the year before, SBA numbers show.

The prices are competitive, Hunsaker said. But “if it wasn’t for the (interest) rate and the SBA loan, I wouldn’t be able to purchase the size building I’m looking to buy.”

 Original story here.

It might be time for contact your local SBA approved Lender with low commercial lending rates. What we don’t want is to sit tight and let the market pass us by. Selling? More borrowers it appears can qualify. Buying? Lots of inventory for the acquisition of commercial real estate.

Please like and share this post. Comments always welcome. And be sure to visit us at Newland Commercial Funding for ALL of your lending needs.

RELATED INFO

Banks to focus more on small business loans and commercial lending rates  The Nation

Banks to focus more on small business loans. Strategic change prompted by new international standards for industry.…

Analysts Full of Ideas for Wells Fargo How About CIT Wall Street Journal blog

Wall Street Journal blog Analysts Full of Ideas for Wells Fargo How About CIT Wall Street Journal blog Wells Fargo has ample deposits and an appetite for purchasing loans in addition to its fast organic commercial-loan growth. Also its credit-card portfolio has remained small relative to the size of its customer base. Wells Fargo has grown to be the and more.…

List of countries by commercial bank prime lending rate

Simple average of annualized interest rates of commercial banks for charging on new Commercial bank prime lending rate. Date of.…

Share/Bookmark

This article, published in the SBA and Commercial Finance and Investment News and written by Timothy E Thomas, highlights the change in the commercial lending climate.

Continuing Good News: The Feds Impact on Commercial Lending

The Fed’s Impact on Commercial Lending: Federal Reserve—rlinger (Flickr.com)

Good news for MBS investors this week will trickle down into CMBS and continue upward pressure on the value of SBA pools and guarantees in the secondary market.  Here’s what the Fed’s Open Market Committee said:

“If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases… until such improvement is achieved in a context of price stability….The Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economy strengthens.”

In the commercial mortgage backed securities world, higher prices on residential MBS and agencies mean higher prices for CMBS as the commercial MBS market improves.  True, delinquencies in existing MBS are over 10 percent, with defaults concentrated in the loans originated in 2007.  But rock bottom yields on 10 year Treasuries and other assets encourage risk – and wouldn’t you know it, Wall Street is responding with looser underwriting standards and higher sales.

Goldman Sachs, Citigroup and Bank of America sold $1.25 billion of the CMBS last week.  The market is Back!  Wells Fargo & Co., and Deutsche Bank AG and others slated to sell $2.34 billion in CMBS this week.  The underwriting for new loans going in to commercial mortgage securities was, through the end of last year, quite stringent.  But the credit reins ae loosening.

With Wall Street reentering the market and commercial and community banks battling for real estate secured assets in improving markts,  now is a great time to borrow.  Credit union rates for commercial deals – incuding senior SBA 504 – remain mid FOURS.  And credit union loans remain free of costly prepay penalties common with CMBS, Libor swaps and life company loans.

Original story here.

Yes, the reins are loosening. Fed’s Impact on Commercial Lending is impacting underwriting, coupled with commercial lending rates that remain quite low. To the astute business owner, now is a great time for that capital infusion you have been thinking of, contact a direct lender with years of experience.Visit Newland Commercial Funding today!

RELATED

Higher demand for commercial lending says the Fed The Source (the Feds impact on commercial lending)

The new Federal Reserve beige book says commercial lending is in higher demand. But the new Fed proposed capital requirements might rain on that picnic.…

Commercial-Mortgage Bond Sales Signal Growing Appetite for Risk Bloomberg

Commercial-Mortgage Bond Sales Signal Growing Appetite for Risk. Bloomberg. Sales of commercial-mortgage bonds are rising as investors chase riskier assets with the Federal Reserve saying today that it likely will hold its benchmark lending rate near zero at least through mid-2015. September is forecast to be the busiest month and more.…

Federal Reserve System

Reserve and informally as the Fed is the central bank ing system of the United States. Interbank lending is the basis of policy.…

Share/Bookmark

This article, published by the Sacramento Bee and written by Claudia Buck, reinforces the point how much the SBA plays as a major role in government backed loans.

Commercial Lending for small business loans improving

Commercial Lending and Business loans, PILES AND PILES OF THIS KIND OF MONEY FILTERED TO …—roberthuffstutter (Flickr.com)

Amid signs the loan market is perking up, the head of the U.S. Small Business Administration dropped into Sacramento on Tuesday to tout new “momentum” in lending to small firms trying to start or expand.

Exhibit A: Margaret Wong, president of McWong International Inc., a longtime U.S.-China exporter who specializes in energy-efficient lighting systems. Wong recently bought a 50,000-square-foot headquarters and warehouse in Natomas, using a $2.4 million SBA loan.

SBA loans, locally and nationwide, fell on hard times during the recent recession. In the past five years, they dropped by roughly half nationwide: from 110,275 loans in 2007 to 61,721 in 2011 – although the dollar amount of the loans grew from $20.6 billion to $24.6 billion.

Carrie Ellinwood, SBA loan specialist in the Sacramento district office, said it’s the economy that has clipped the wings of both banks and borrowers.

But some see signs that’s starting to change.

Her company is now exploring a contract with PRIDE Industries, whose disabled workforce in Roseville could assemble a number of lighting products that are manufactured in China. “The comparisons are very encouraging … we are moving forward to expand our assembly and manufacturing in Sacramento,” Wong said.

Original story here.

Commercial lending rates are very low so capital is available at a very good time for both purchasing a business, getting a new loan for business expansion or refinancing old commercial loans.

Please visit us at Newland Commercial Lending for all of your lending needs, from start up business loans to commercial real loans to SBA loans. Be sure to comment and like this post. And share, too!

 RELATED

Blog Archive The Current State Of Small Business Lending

As might be expected the report found that both small business borrowers and lenders were less active in 2011 than in 2010 with both sides cautious about either taking on debt or extending capital in a still-shaky economy.…

Signs of life for commercial mortgage sector B2B Mortgage

expressandstar.com. Signs of life for commercial mortgage sector. B2B Mortgage. There are signs of life in the sector for commercial mortgages but more needs to be done to sustain the improvement. Residential mortgage lending is struggling to its feet partly in thanks to schemes like NewBuy which has seen the government Number of mortgages in UK moving steadily upwards latest figures showProperty Wire. all 22 news articles.…

Commercial lender U S

In the United States a commercial lender offers loans backed by hard collateral Commercial lending practices private lending institutions.…

Share/Bookmark

This article, written by John M. Mason and published in Seeking Alpha, shows the slow, positive trend of an improving landscape in the commercial lending area.

  Commercial Lending Appears to be Picking Up

Commercial loans, Prodew 01192011 005—City of Marietta GA (Flickr.com)

Over the past four weeks, according to Federal Reserve data (H.8), Loans and Leases at all commercial banks in the United States rose by over $16 billion; over the past thirteen weeks, Loans and Leases rose by almost $58 billion.

The year-over-year growth rate for the latest monthly figures show that Loans and Leases are up by 5.0 percent. So, the banking system…at least parts of it…are finally showing some life.

Business loans (Commercial and Industrial loans) have shown the strongest increases in the lending category with almost all of the increase coming at the largest 25 domestically chartered banks in the United States.

Note: I have noted over the past year or so that foreign-related financial institutions have acquired a lot of money here in the United States and passed this money along to “related foreign offices”. The timing of these flows has been closely connected with the financial crisis taking place in Europe.

An apparent reflection that financial pressures eased over the past four-week period is that the net balances due to related foreign offices at foreign-related financial institutions in the United States fell by more than $50 billion!

However, net balances were still up over the last thirteen weeks (by almost $20 billion) and were up over the past year by more than $160 billion.

The United States is still helping to provide liquidity to European banks to get them through their period of financial distress. Overall, these net deposits due to related foreign offices have been from $350 billion to $400 billion higher than they were before the crisis picked up about three years ago.

Original story here.

With commercial lending rates still very low, for business owners or new business owners now may be the time for either expansion or business start up funds. For more information on commercial lending, please visit us at Newland Commercial Funding, where our lending group has provided medical/dental practice loans under 5%, apartment loans under 3.75%, and even a grade B loan for Multi-Tenant Retail Center loan less than 5%.

RELATED INFORMATION

Commercial Mortgage Delinquency Rates Fall The Commercial

Chandan Economics and the Mortgage Bankers Association released data last week that points to continued improvements in the commercial real estate market. Chandan released its Q2 2012 Bank CRE Default and Lending.…

BofA seeks to add loans after divestitures CFO Chicago Tribune

Wall Street Journal. BofA seeks to add loans after divestitures CFO. Chicago Tribune. In the second quarter Bank of America’s total commercial loans were up 4 percent from a year ago to 317 billion while total consumer loans fell 10 percent to 575.3 billion. Many of its rivals including Wells Fargo Co and U. S. Bancorp have been BofA seeks to add loans after divestitures CFOReuters. all 23 news articles.…

List of countries by commercial bank prime lending rate (commercial lending)

average of annualized interest rates of commercial banks for charging on new loans Commercial bank prime lending rate. Date of.…

Share/Bookmark

Financial stress, BlueCollar—Symic (Flickr.com)

Of course we all face financial stress at one time or another, from small to big, from person to business to governments. We have all been there. So let’s look at some of the great tips on relieving our stress levels when it comes to money. Think how much better you feel after you deal with something unpleasant rather than let it fester and unconsciously nag at you.

Best Ways to Coping with Financial Stress

Share/Bookmark

Business Sales Potential, fan saleslady—in pastel (Flickr.com)

Sales, sales, sales. Ask yourself, are we fully looking at all business sales potential if we don’t stick the the core principles for both management and the sales force to realize full potential. Look what a review of the  management back to the basics can do to go about the maximizing the sales potential.

This article, published by the Business Performance Group and written by Timothy B. Huffaker, highlights the sales challenges for companies.

 Teaching Business Sales Potential

Incoming search terms:

• timothy huffaker sales articles

Share/Bookmark