Are We There yet?

Get ahead of the game, rates won’t get any better . . .

Looking for commercial real estate money? It’s getting easier to find, but the status of your market and the risk of the project determines how easy and how much is available. Sounds like things are all back to normal, cause that’s how we have always described the availability of commercial dollars, both debt and equity.

If you’re in a primary market, and want to refinance your apartments, lenders are knocking at your door. (or at least looking seriously at your deal.) Secondary or tertiary markets are easing, but they’re not there yet. If you want to do the construction of a strip center in a rural market . . . Let’s just say you better not have any credit hits.

In reality, it seems as though things are on an upward trend, and as fast as they are moving the outlook is quite good for the later part of this year and on into 2011. So, there is no better time to start looking for that money than right now. If you have a project that is not a slam dunk, don’t wait, take it to a commercial broker. They will know how to structure and package your loan request better than you, after all that’s their business. And, they will know to whom and where to take it to get it financed. To get your funding, the package must be perfect, and it may take some time to find the lender/investor who says,  "yes, let’s do it!"

If you have a project that’s the 'slam dunk' take it to your banker and get it done. Interest rates are as low as you will ever see them so lock it while you can.

I've been in the commercial real estate funding arena for 30+ years and have been through way too many of these real estate cycles, thet ae the way of the market. As soon as things level out, you know the market will change. But, you only know it has changed by watching the rearview mirror, and by then its too late. Whether your project is an easy deal or a tough one, the sooner you get started on your financing quest, the better your rate will probably be. There’s no time like the present, so let’s get‘er done.

Been there, done that.

David L. Skibowski, President
The Skibowski Company LC,
Consultants and Financiers
 dls@skibowski.net
231-668-6324
http://www.1greatmortgage.com/