Read through Jackson Howard’s responses to what 2018 holds for commercial real estate investors and lending strategies with the new year.
1. What is the biggest challenge you anticipate in 2018 as a direct lender or financial intermediary in commercial real estate? Where do you see the biggest opportunity for your company in 2018?
Toward the end of 2017 we noticed an increase in requests for construction money across a variety of asset classes. Construction dollars can be hard to find, and banks have been reluctant to lend more than 65% LTC. All the more reason to partner with a company such as Sweetwater Capital to help pull cash out from stabilized assets to use for new projects.
2. What is your company’s lending strategy for 2018? Any new lines of business or opportunities you are pursuing?
Our clients continue to be frustrated with the lending options provided by banks. We have done a phenomenal job of building relationships with lenders that offer better terms and higher leverage. Our lending strategy is heavily influenced by our company core values to pursue lending opportunities that best fit the financial goals of our clients. We are always looking to form even more relationships with new lenders, diversify our loan options and help clients get superior loans.
3. What property sector of commercial real estate will experience the most activity in 2018, and why?
Multifamily has been a stronghold as the top property sector and, based on expected market trends, will most likely remain there for the foreseeable future. We expect to see industrial, along with office and retail spaces, increase within primary and secondary markets. The boom of online retail calls for an increase of construction for industrial sites. Multifamily, office and retail following close behind.
4. What advice are you giving your borrowers to help them maximize their lending strategy in 2018?
Obtain a strong relationship with an experienced commercial mortgage brokerage firm such as Sweetwater Capital. With so many new lenders are popping up in the marketplace all the time, many borrowers may not even be aware of their options. For example, we used to shop an average of 10 lenders per deal and now we’re averaging 35 lenders. This helps maximize the borrowers chance of securing better loan terms in an efficient manner, ultimately helping them achieve their financial goals.