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Thank you for the opportunity to share general information relating to the commercial real estate finance industry and letting you know what's new at The Loan Company. We value your relationship and believe better communication is another way we can serve you.
Lending Focus:
Commercial real estate loans from $250,000 to $3,000,000 on all improved income property types. Flexible terms: up to 30-year amortization, debt service coverage close to breakeven, and fast closings. Our rates and fees are the most competitive in the market for private lenders, with rates starting as low as 8.5%. As a private lender, we do not have fixed criteria to be met like other conventional lenders -- our proprietary lending flexibility allows us to evaluate the entire credit worthiness in making a lending decision.
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5 Real Estate Strategies in a Volatile Market 1. Solutions Create Opportunity Solving problems for distressed investors will create prime investment opportunities. Look for ways to provide workouts for distressed investments. As loan terms mature, many properties will be unable to cover the debt service associated with new loans. Financing criteria has changed dramatically and will surprise many investors as they look to re-finance. Large "vulture" funds are being formed for the sole purpose of raising capital to profit from distressed institutional grade investments. On a smaller scale, attentive investors can capitalize on opportunities by providing solutions in their local market.
2. Cash is King
Investors who have been disciplined and kept a healthy amount of liquid assets are now in a favorable position. Kelly Hugh, a well respected real estate economist says, "There is such a volume of capital out there. I have three pictures I use in my talks, one is of Niagara Falls, one is the Sahara Desert and the third is the Hoover Dam. The argument is that for a long time we had a Niagara of capital, now people think we have a Sahara but we don't. It's a Hoover Dam. It's all sitting back there. The question is; When does it get released?"
Those investors who can move quickly and provide interim resolutions will come out ahead
3. Change Strategy from Growth Investing to Value Investing
In recent years past, investors had a buffer that alleviated bad investment decisions. Rent growth and appreciation seemed to remedy any ill-advised acquisitions.Now with rent growth and appreciation absent, property owners are forced to find new ways to produce the yield desired. Strong asset management combined with tenant retention will help drive yield in existing properties. New acquisition investments can take advantage of the upward trend in CAP rates. 4. Avoid Lowering Rents
Commercial real estate values are tied to the income the property produces. As retailers are struggling we will see more and more vacancies in the market. Existing property owners should strive to minimize down time and re-tenant quickly. Up-front incentives such as free rent and tenant allowances will help entice new tenants while maintaining your property value for the long-term. 5. "Buy into Fear, Sell into Greed"
There is no arguing we are in a slowing market, however investors that seize the opportunity can turn this into a wealth-creation market. While the masses are standing on the sidelines there are unbelievable opportunities for a knowledgeable investor.
| |  | Reality Check in Today's Market - The definition of a low interest loan according to most banks:
The Reality Check: The Loan Company has money to lend at competitive rates, and since we're not a bank we don't demand deposits in exchange for making loans. The Loan Company's goal is to make sound, common sense decisions on loans that promote success for our clients, because if our clients are successful we are successful. |  | | Prepare for the Upturn As sales decline, you think about cutting expenses. But it's also important to prepare for the next upturn. Case in point: In the early 2000s, Lucent Technologies experienced a major decline in business, mostly due to telecom trends beyond its control. First, the company slashed its workforce, and then everyone watched to see how CEO, Patricia Russo, would restore profitability. Within months, Russo tasked her team with identifying new growth areas, aiming to launch new businesses before the company rebounded. Her goal: finding new revenue independent of telecom-hardware cycles. The growth team used an outside firm to conduct a short, intense study. Then it revealed a new services business, later named, Lucent Worldwide Service, targeting a diverse customer base. This was a big reason why Lucent later teamed up with Alcatel. Lesson: Never loose sight of long-term goals, even during a downturn. Adapted "Upturn Thinking in a Downturn Year," Asaf Farashuddin, strategy+business. |
| |  Integrity is the Cornerstone of Our Business
As a private direct lender, The Loan Company has built its business and reputation on integrity and steady, solid growth. Since its beginning over 30 years ago, The Loan Company has established quality in every dimension of the business. Treating clients the way we want to be treated is at the core of every transaction.
John P. Lloyd
Linked In Personal Profile
| | Give us a call at 619.293.7770 x20 or send us an email. San Diego Office: 2356 Moore Street, Suite 201 San Diego, CA 92110
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| | | | | | 11th Dist. = 2.77% Click above for specific details on individual rates including graphs & charts | | |  | $900,000 First Trust Deed Senior Housing San Marcos, CA | . . . . . $580,000 First Trust Deed Bar/Restaurant San Diego, CA . . . . . | | | "A great leader's courage to fulfill his vision comes from passion, not position."
John Maxwell | |
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