Where Will The Commercial Mortgage Market Be At The End Of 2008?

by Jay Estis

Just when you think we may be turning the corner, more bad news comes raining down. First it was the collapse of Bear Sterns.

More recently we witnessed the failure of IndyMac Bank. Turning on the six o'clock news we see people lined up around the IndyMac Bank Branches, desperately hoping to get their hands on their money.

Then, hitting closer to home in the Commercial Mortgage Sector we hear Lehman Brothers is no longer funding loans.

Next, we hear Fannie Mae and Freddie Mac are in financial trouble.

Is the sky falling? Where is this market headed? Is there any possible relief in sight?

I am here to tell you that the sky is most certainly NOT falling. Things are bad. But they could be worse. Much worse in fact.

Will we see it get much worse? I doubt it. Worse yes. Much worse, not likely. Don't misunderstand, we're not out of the woods yet.

You can expect to see a few smaller, local/regional Bank failures to come before years end. Those small Banks may have too much commercial paper on their books, that they need to unload.

Is that a problem? Not if you have the ability to help those smaller Banks out by taking their commercial paper of their hands. That's what I'll be doing.

You need to know that things are not this bad for everyone. In spite of what you may read in the newspaper or hear on the six o'clock news.

There are still some of us in the Commercial Mortgage Sector who are not only surviving, but we're thriving. Having our best year yet!

Yes, the economy is in dire straits. While not officially in a recession, we're certainly feeling like we're in a recession in our minds. And then there's inflation.

With gasoline still over $4.00 a gallon, food prices screaming higher with each stop at our local grocery store, we are feeling the pinch.

But I am here to tell that the sky is not falling. We will recover. We always do. We just need to wrap our collective heads around the simple fact that we're a resilient economy, if nothing else.

That we manage to pull ourselves up by our bootstraps when times are tough, that we are a Country of fighters, or doers, maybe if we can wrap our heads around this will be able to speed up the recovery.

I still wonder how it is we can be having our best year ever servicing our many Commercial Mortgage Clients, while others seem to be fading away by each passing day.

We should all have the same opportunity. So why do some prosper while others falter?

I can tell you we have a positive attitude. And that's a requirement when the chips are down.

We see there is such great potential in this market, and we are acting accordingly. And when you take a great attitude and mix it with positive action, good things are sure to follow.

Maybe it's just Newton's Law. An object at rest tends to stay at rest and an object in motion tends to stay in motion unless acted upon by an unbalanced force.

Do you think maybe you have met an unbalanced force?

Not only have we stayed in motion, we've picked up speed. As if because so many others stopped and got out of the way, we were able to pick up steam with each passing day.

Make no mistake, if you can thrive in this market, you can blast off in a good economy.

Financing Commercial Real Estate is more difficult today than even just six short months ago. But do not let anyone tell you that you can't buy Commercial Real Estate, or that you can't refinance out of that SBA loan. Because you most certainly can.

And if your local Bank calls to say they would like you to look elsewhere for financing, don't be discouraged. Be thankful that they haven't wasted any more of your time.

Because chasing Commercial Real Estate Financing in this market is the easiest way to lose your deal. And it's the easiest way to lose confidence.

This is not the time to listen to someone with little experience tell you exactly what you want to hear.

In fact, if you find your local Bank or someone else, like a Residential Mortgage Broker, being completely agreeable, that should tip you off that you're on the wrong path.

Because in most cases you won't find everything you're looking for, but with the right Commercial Mortgage Partner you will find enough of what you're looking for to make the deal work. 

To get some idea of what can be done, take a look at Commercial Mortgage Loan Programs 

While that is only a partial list, it should give you some idea as to the possibilities.

Additionally, there is a new Commercial Loan program available for both purchases and refinances. 

If you're currently stuck in an SBA Loan and need to refinance, you need to take a look at this loan product. And if you are looking to purchase commercial real estate with SBA financing, you absolutely must take a look at this new Commercial Loan program.

And a word of caution. You will not find this Loan anywhere else but right here. Part of our commitment to seek out Lenders and Commercial Loan Products for our Clients.

Maybe this explains why we're growing while others are not. 

As for my prediction of where the market will be at the end of 2008, I think this new Commercial Loan may be the biggest difference for a lot of Business Owners and Entrepreneurs.

For information about this loan, or any other questions you may have regarding Commercial Real Estate Financing, please call Jay Estis at 561-208-6469.