Commercial Mortgage Refinance Loan Options in 2011 and Beyond

Its painfully well known that the last 3 years have been difficult in the commercial lending business. Borrower’s commercial loan options have been limited and most have been difficult to close. We discuss the various commercial mortgage refinance options, that are available now and that will likely be available in 2012 below. You may not like what you read, but this is the reality of the market.Refinance Options on Commercial Investment PropertiesIf you own a commercial investment property (I’m referring to NON multifamily properties, such as office, retail, industrial, etc) you already know how hard it’s been to find banks and lenders that are interested in considering your loan request. Probably 80% of the banks out there have no interest in funding investment property loans, no matter how financially strong of a borrower you are (The main reason is how commercial real estate sits on banks balance sheets, but that’s a different topic).The good news is that 2011 has seen an increase in the number of banks and lenders that are willing to lend to commercial investors and for those that qualify the rates are outstanding. Here’s the typical terms: Max 65% loan to value and this is with conservative capitalization rates of 8% or more (Despite market conditions). Max 20 year amortization schedules. You may find a bank that would be willing to spread this out to 25 years but this is rare.Fixed periods are normally capped at 5 years, however 7 and 10 years are available, but the bump in interest rates is expensive. Minimum debt coverage ratio’s is now 1.4 and this is with conservative underwriting line items such as minimum vacancy of 7-10%, management at 4% and reserves at 2%. Bottomline is that the property has to cash flow well. Unfortunately borrowers and their investment properties that don’t fit the above, will struggle to find loan options.Owner User Commercial PropertiesIf your business occupies more than 50% of your building, than your loan options open up considerable and the level of competition between banks is picking up. The easiest way to make sense of the various loan programs is to divide them between conventional loans and government backed loans such as the SBA.Conventional lending which was very limited up to 12 – 9 months ago is finally picking up. If you fit this box, expect great rates and closings in as little as 30 days. Terms are as follows: 65% (Maybe 70%) max loan to value. 15, 20 or 25 year amortization schedules. Fixed rates from 1, 3, 5, and 10 years. Rates are currently in the 4%’s to low 5%’s on 5 year fixed programs. Minimum debt coverage ratios of 1.25 with stable gross sales.If your loan to value is higher than 65% and or if you have a special use property such as a funeral home or restaurant, etc you’ll want to look harder at the SBA programs. And despite the bureaucracy of the SBA loan process, it has literally been the life saver of 1,000′s of small businesses across the country.Expect 90% loan to value, again 90% loan to value financing with either the SBA 504 or SBA 7a programs… No other loan programs offer this high of leverage. Borrowers that purchased their property a few years ago and have experienced a decline in value will find that this is their best potential solution. Rates on the 504 loan are very low and you can expect 3, 5, 10 and even 25 year fixed rates. For borrowers that need to consolidate other debt or secure working capital the SBA 7a loan is another solid option. Both of these loans will remain a popular and viable option throughout 2012.2012 will likely see a moderate increase in the number of banks and loan programs that become available for commercial mortgage refinances. Loan to values will likely not increase as the capital ratios for banks are not going to loosen per the Fed’s rules. The European debt crisis will also have a major impact on banks in the 2012.

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All About the Wholesale Furniture Market

People who want to furnish their home with sophisticated and elegant looking furniture must think about furniture pieces that are fantastically crafted by craftsmen and can be kept in almost every room of the house.Furniture can be termed as a vital home decoration accessory. It provides a balanced look to a home. Besides accentuating the interiors of the house, furniture has other utilities and functionalities as well. Each room of a house requires some specific pieces of furniture that serve some specific purpose. The positioning of the furniture is also an important aspect for enhancing the overall look of the room. Hence, each piece of furniture must be carefully assigned its correct place.The wholesale furniture market is the best place to search for mahogany and other furniture at affordable prices. If you’re a furniture retailer, you can shop from wholesale furniture dealers who often offer heavy discounts on bulk purchases. In fact the wholesale furniture market is rapidly gaining popularity, especially among those who want to secure a lucrative deal.The main reason behind the wholesale market being far economical than the retail market is that the furniture is sold directly to the customer, thereby eliminating the share of profit by the middlemen. The wholesalers also offer heavy discounts every now and then to attract more buyers.The other benefit of the wholesale furniture market is the availability of almost all types of furniture. You can find just about anything that you’re looking for. Right from expensive mahogany cabinets to the more common mango-wood table, the wholesale furniture market has it all. The wholesalers cater to almost all types of customers and anybody can find a great deal.There’s no escaping the fact that wooden furniture is becoming a rarity these days and it’s hard to find good quality wood. Stringent sanctions have been imposed on the falling of trees in almost all countries across the world. Some trees, like mahogany, have been banned for public cultivation in several countries and are only grown under government supervision solely for commercial purposes. Such types of wood are quite expensive, considering their scarcity. However, many wholesale furniture dealers have furniture that are made from some of the most expensive and rare woods.Furniture dealers and wholesalers are making the most out of the renewed interest from the western world. Wooden furniture is renowned all over the world for its strength and durability and the best furniture wood comes from the tropical countries.All said and done, buying wholesale furniture certainly makes sense as it’s a win-win situation for both the buyer and the wholesaler. While the buyer gets a better price, the wholesaler can sell in bulk. This is especially beneficial for schools, colleges and other organizations. You can also benefit if you’re a restaurateur or hotelier.Wholesale furniture dealers are also cashing this increase in demand of their products. They have come up with attractive sales promotion schemes to rake in more profits. The elimination of the retailer’s profit has led to unlocking of the price advantage.

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