News

“Limited funds and low rates are two reasons to refinance your commercial property today.”

Historically Low Interest Rates
By Ralph C Jones

Currently, many property owners are unaware that they may be able to obtain very attractive financing for their commercial property using government lending products. For example, government sponsored programs such as Fannie Mae and Freddie Mac Multifamily products are available in 5, 7, 15, 30 year fixed products, with rates as low as 5.25%.

Right now, WSJ Prime is at 3.25, the 5yr Treasury is at 2.70, and the 10yr Treasury is at 3.66. Although these are at historical lows, you have to keep in mind that banks typically offer their rates at 3 or 4 percent above the index. Working with an experienced commercial mortgage professional who has relationships with both local and regional banks is your secret weapon to locking in a low rate with exceptional terms.

SBA 7(a) & 504 Refinancing Options
By Jesus Suarez

The U.S. Small Business Administration made a historical change in their policy this week and will allow small businesses to refinance their existing loan using both SBA 7(a) and 504 products. This change is one of the many elements resulting from the $787 billion American Recovery Reinvestment Act of 2009. SBA financing can be used for business real estate, construction, equipment, acquisition, working capital, and new business development.
SBA financing can be difficult, but business owners should not let complicated paperwork prevent them from getting attractive rates and terms. The experienced professionals at LR Funding can guide you through the entire process.

Adjusting Rates & CMBS
By Ralph C Jones

Commercial real estate in the U.S. is valued between $5-$6 trillion dollars. As most commercial real estate mortgages mature every 5, or 10 years, the average amount of maturing loans in 2009 is somewhere between $300 and $600 billion dollars. Between 2010 and 2015 maturing commercial mortgage debt will explode to more than $2.3 trillion dollars.

These numbers are staggering and they should remain in the minds of all property owners. The demise of the CMBS market has drained much of the liquidity out of commercial financing. Thus causing local, regional, and national banks to focus their lending on a first come first serve basis. If you have a loan maturing within the next 12 months to 5 years these are two reasons you should refinance now: first, interest rates will not remain at these historical lows and second, banks will continue to have limited funds to lend as an unprecedented amount of mortgages come due in the months to come.

Lincoln Road Funding is a full service commercial real estate financial institution. Our company offers you an underwriting and sales staff that has over 50 years of combined commercial financing experience. Our staff has worked with national and regional banks, along with government agencies to close over $360 million of commercial transactions.

Call us and we will evaluate your current property value, relative to your loan balance. We will look at your current income position relative to your mortgage payment. We will evaluate your current mortgage terms and present the best financing options for your commercial property.

“Solid business relationships during difficult economic times can be the difference between knowing what’s available and being left out in the dark.”