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Cohen Commercial News CCN
SBA spared in budget battles - Good news
SBA Budget Cuts - What effect will this have on SBA lending?
2010 Forth Quater Commercial Mortgage Debt Outstanding -
report released by MBA. Report shows interesting comparison
between multifamily and general income producing commercial
real estate.
Closed SBA 504 Loan, Indianapolis, Indiana - This was a
purchase transaction at $1,550,000. It was an interesting
transaction, due to...
New Commercial Mortgage Program - Commercial Finance
Advisor’s, Inc is excited to announce the recent release of a new
commercial mortgage program for business owners, that is non
SBA backed. The program has 3, 5 and 10 year fixed rates,
with amortization schedules from 15, 20 or 25 years. Loan
amounts range from $400,000 to $4,000,000. Lending area is
nationwide.
Small Business Job Act Has Passed - What does this mean for
you as a business owner? There are several major changes
that we will discuss below. Note all of them are positive.
Commercial Property Appraisal Preparation for and ways to
speed up the property appraisal process.
SBA 7a Recent Changes Includes general discussion of
changes to the SBA 7a program as well as the SOP.
Recent Closing of a Physician Loan- Commercial Finance
Advisors, Inc is pleased to announce recent closing of a
physician loan...
Commercial Real Estate Loans- Still Closing! Overview of what
the most viable loan programs in the business.
Commercial Mortgage Brokers,Argument ForA lengthy
discussion of the benefits of working with a commercial
mortgage broker.
SBA 7a Loan, Typical Questions - We field and discuss the
most common questions that business owners have on SBA
loans.
SBA Business Loans, The Basics- Overview of the benefits to
the flagship SBA program - the 7a.
Commercial Mortgage Loans, Business Owners - Entrepreneurs
should reconsider the SBA loans as a source of capital.
Best Solution for High LTV and Reliability - SBA 7A loans
provide the highest level of financing in the business and are
reliable.
SBA 7a Loans Are Expensive - Despite the benefits of the
borrowers should understand that SBA loan are expensive.
Here we give you a greater understanding.
SBA 7a Loans, The Race is On The fees for SBA 7a loans
have been waived. Significantly reducing the costs for these
programs.
Why all the Hype? SBA 7A Loan SBA 7a loans The Stimulus
Package, put together by the Obama administration has thrust
the SBA 7a loan into general public.
SBA Loans, You Know Most Lenders Aren't Funding, But Why?
The secondary market has caused for SBA 7a loans have
caused a lot of problems for the market.
Business and Industry Loans, B and I Loans in a State Of
Confusion Though we are seeing some signs of stabilization
within the commercial mortgage industry, the USDA’s B and I
program seems to be in a complete state of confusion and has
“run out of money”.
Commercial Loan Modification? Interesting Developments We
are seeing some interesting developments with commercial real
estate loans. One happens to be banks willing to modify their
existing debt to borrowers.
Commercial Bank Loans, Why Bother Conventional commercial
bank loans are well worth the additional scrutiny. These loans
offer the lowest rates, lowest fees, longest fixed periods, and
longest amortization schedules currently offered in the market
today, for your typical small commercial mortgages (Under
$5,000,000).
Medical Financing Construction Loans Medical financing
continues to enjoy the best loan options in the business.
Lenders continue to “salivate” over doctors, dentist, and
veterinarians. For example, 90% financing on purchases or
construction transactions still exists.
Medical Financing for Commercial Real Estate Doctors or other
practitioners in the medical field seeking commercial real estate
loans will find the absolute best options in the market today.
Medical financing is competitive and banks/lenders continue to
compete hard to win over borrowers in this sector, despite the
overall economy, and liquidity issues we continue to face
Current Issues That Kill Commercial Property Loans Working
on a commercial property loan? Below we discuss some of the
most common issues that kill borrower’s commercial property
loans and what you should watch out for. The last thing you
want is to blow 4 months and $6,000 on third party reports only
to have your bank “pass” on your loan request.
Commercial Hard Money – The Pigs Are Feed Commercial hard
money lenders, seem to be content with their existing loan
portfolios as many are slow to react to new loan requests and
are, not surprisingly cherry picking the very best of hard money
requests. Of the reputable lender we work with, many have
confirmed this and seem to be focused on their existing portfolio
and are trying to avoid foreclosures/losses.
Commercial Construction Loans – Abandoned Deals
Commercial construction loans have taken perhaps the hardest
“beating” in the current credit crisis. Bottom line, banks do not
want too or cannot take on the additional risks that come with
construction loans.
SBA Loans - Poised For a Come Back? Year to date we have
seen 6 major national SBA lenders come back to the market.
That is very encouraging news, despite all of the continued talk
of the recession and how bad it might get. The fact that these
leaders in the industry have the confidence to put both their
necks on the line and capital, is the most important and
significant statement of belief they could provide.
Commercial Mortgage Rates – Now With the so called TARP
money and low indexes, owners are very curious regarding
where the current commercial mortgage rates are. We give
specific rates below and some general thoughts surrounding
them, broken down by conventional and SBA loans. We will
shortly come out with another report on rates for commercial
investment properties.
Hotel Loans -All is Not Lost Hotel loans and hotel financing has
become much more limited in the last six months, but there still
are options out there. Here are a few things to consider on
increasing your chances of getting your hotel loan closed.
Comercial Real Estate Finance San Diego- After the 2008 4th
quarter of shock and awe in the world’s capital markets, lenders
appear to have found their footing and liquidity has returned to
the commercial real estate financing market. Credit for
multifamily, office, industrial and retail properties is available.
Most life insurance companies in attendance in San Diego for
the Commercial Real Estate Finance convention on February 8,
-11, 2009, have budgeted billions to deploy into the commercial
real estate markets in 2009. While several previously large
market participants remain on the sidelines, liquidity remains
available. Lenders surveyed indicated loan pricing will be
generally be higher and loan proceeds lower in 2009.
Commercial mortgage training, fee agreements, spreadsheets,
etc.
"Screen Your Commercial Loans" (published in Scotsman Guide
8/07)
Brokering commercial mortgages has its perks. It is generally
viewed as a prestigious profession and brokers tend to deal with
highly sophisticated borrowers on most transactions. However
residential brokers should not fool themselves that entering this
business will be a cake-wake.
Commercial Mortgage Refinancing There are many pitfalls that
can eliminate or create problems on a commercial mortgage
refinance. Whether or not your particular situation will qualify,
depends on several factors. Understanding your potential loans
strengths and weaknesses will save you time and ensure your
best chance of a successful commercial refinance.
Commercial Refinance There are several issues that can hold
up your commercial mortgage refinance. As the credit crisis
deepens many of the typical issues have been exasperated as
banks and lenders scramble to protect their own balance sheets
and loan turn downs may be just a result of the banks issues
and nothing to do with the borrowers commercial mortgage
refinance, for example.
Commercial Loan Fee Agreement When is the best time to ask
your borrower to sign your commercial mortgage fee
agreement? There is some debate over this. Though, all
seem to agree that it should be before the borrower sees a term
sheets that you have collected. This may seem a small detail, it’
s one of those little ones that can have a big impact on your
wallet.
Loans for gas stations Gas station loans can be “tricky”.
Environmental concerns, slim profit margins, credit card fees,
fuel theft often causes many banks and lenders to shy away or
better said, ignore gas station loan opportunities entirely.
Commercial Loan Business We get a lot of questions regarding
the commercial loan business. Many are from our peers that
want our opinions on the commercial loan business.
90% Commercial Loans Straight 90% financing for investors is
very rare. 6 months to one year ago there were a few lenders
that offered 90% financing but there rates where normally 1-3%
higher than typical interest rates at 80% financing. The way the
investors still can structure 90% financing on investment
properties is to have the seller hold a second lien position loan.
Yes this might be obvious for you, but you should not just
assume this is easy to get done.
Loans for Restaurants One of the most common options is the
SBA loans. Although not perfect, they can be a viable option.
For one, they are still reliable and are still closing. Two, they do
offer some of the lowest fixed rates available and the highest
level of financing for restaurant loans.
Loans for Hotels Found a hotel that you plan on purchasing and
are now examining options for your hotel loan? You will quickly
discover that unless you’re planning on putting 35% down or
more (and in the form of cash, not equity from your house for
example), that the hotel has a strong flag and great historical
financials your only option will be either the SBA 504 or the SBA
7a programs.
Franchise Restaurant Loans Many borrowers are surprised to
learn that they may actually have more options on restaurant
loan options for free standing, non franchise properties than
franchise restaurants. With conventional financing and SBA
loans it’s almost a no brainer to go the franchise route.
Loans For Car Washes Looking for options on car wash loans?
You’ll probably find that you have limited options as most of the
national banks and lenders that use to lend within this building
type have pulled out due to the “credit crisis”. Car wash
facilities that are strictly self serve and located in smaller towns
will have additional challenges finding decent cash wash loan
options.
Restaurant Loans and SBA Examining options on a restaurant
loan? Due to the current credit crisis you might want to take a
look at the SBA programs first, as they are currently the most
reliable comercial loan programs. Not only do they have the
highest probability of closing, they also boast some of the lowest
rates, highest leverage, and longest fixed rate financing around
for restaurants.
Commercial Loan Interest Rates A list of commercial loan rates
and indexes commonly used in this industry are below, for your
reference. Note that on each individual index, you can click on,
to see a historical summary and chart, broken down by either
week, month, year or over a three year period. By taking a 3
year look at an index, you can get a better feel for its volatility.
This can be especially important if you are considering an
adjustable rate loan and or a 1 to 3 year fixed program.
Common SBA Loan Questions Business owners have heard
much about the SBA commercial mortgage programs over the
years and unfortunately much of the rumors are negative. The
SBA has changed dramatically and most of the bad press is now
without merit. Here are some of the common questions we field
on a daily basis. All SBA lenders are the same, why work
someone that isn’t local?Program guidelines and criteria vary
from lender to lender.
Business Mortgages Entrepreneurs that have been through the
process of purchasing a commercial property for their business,
understand the complexity of the process. Securing financing is
just one part of the equation – which in and of itself is
cumbersome and borrowers literally have 100’s of loan option to
choose from.
Commercial Subprime Loans Although there is really no
“commercial subprime mortgage” sector like there was in
residential, there are 3 types of commercial mortgages programs
that are designed for borrowers with difficult situations. These
loan programs include: 1. Stated income commercial loans 2 .
Commercial hard money 3. SBA 7a loans.
Business Debt Consolidation During these difficult times
business owners search for any angle on how to reduce costs.
Consolidating business debt into commercial mortgages can be
a “clean” and relatively easy way to increase cash flow, but
there is risk and a cost to do this.
Cohen Commercial Equity a Division of Cohen Financial Group all rights reserved 2006.
Tel: 800-928-6154 New York, NY
DISCLAIMER: Cohen Commercial Equity is not a Securities Dealer or Investment Advisor. Cohen
Commercial Equity and Joint Venture Provider is a Private Investor and Introductory services are provided to
Client through various contacts that suit their business needs at Client’s request. Cohen Commercial Equity
does not provide any funding, bank instruments, bank guarantees or other financial instruments. Because laws
governing investments vary among the jurisdictions with regard to the requirements and obligations of the
investor and any broker or consultant involved, a careful review of your jurisdiction's laws.
Slight Gain in New Home
Sales in California
October 13, 2009
New home sales in California in
August rebounded somewhat
from July's low levels, but they
were still 13% below the same
month last year, according to the
California Building Industry
Association.
NABE Sees a Major
Spike in Housing Starts
Next Year
October 12, 2009
Housing starts will jump 38% next
year and finally contribute to
economic growth as the housing
sector breaks out of a three-year
spiral, according to a new
National Association of Business
Economists survey.
HMDA Analysis:
Countrywide/BoA
Fannie's Top Customer
in 2008
October 9, 2009
In 2008 the top customer of
Fannie Mae was, by far, the
combined mortgage operation of
Bank of America and
Countrywide Financial Corp.,
accounting for almost 18% of all
loans sold to the mortgage giant,
according to an analysis done by
National Mortgage News.
Wells, Bank of America
Top Residential Funders
in First-Half
October 9, 2009
Wells Fargo & Co., and Bank of
America dominated the
residential production market in
the first-half, originating $231
billion in loans, and achieving a
combined market share of almost
45%, according to figures
compiled by National Mortgage
News and the Quarterly Data
Report.
Survey Finds Buyers Still
Paying Less Than
Listing Price
October 8, 2009
While it appears the balance
between a buyers market and a
sellers market is creeping back
towards equilibrium, there is a
likelihood of a trend back towards
the buyers as the summer home
purchase season ends, the chief
economist of Zillow.com said.
Sales in California
October 13, 2009
New home sales in California in
August rebounded somewhat
from July's low levels, but they
were still 13% below the same
month last year, according to the
California Building Industry
Association.
NABE Sees a Major
Spike in Housing Starts
Next Year
October 12, 2009
Housing starts will jump 38% next
year and finally contribute to
economic growth as the housing
sector breaks out of a three-year
spiral, according to a new
National Association of Business
Economists survey.
HMDA Analysis:
Countrywide/BoA
Fannie's Top Customer
in 2008
October 9, 2009
In 2008 the top customer of
Fannie Mae was, by far, the
combined mortgage operation of
Bank of America and
Countrywide Financial Corp.,
accounting for almost 18% of all
loans sold to the mortgage giant,
according to an analysis done by
National Mortgage News.
Wells, Bank of America
Top Residential Funders
in First-Half
October 9, 2009
Wells Fargo & Co., and Bank of
America dominated the
residential production market in
the first-half, originating $231
billion in loans, and achieving a
combined market share of almost
45%, according to figures
compiled by National Mortgage
News and the Quarterly Data
Report.
Survey Finds Buyers Still
Paying Less Than
Listing Price
October 8, 2009
While it appears the balance
between a buyers market and a
sellers market is creeping back
towards equilibrium, there is a
likelihood of a trend back towards
the buyers as the summer home
purchase season ends, the chief
economist of Zillow.com said.