Opportunity. When it knocks, are you prepared?
If you are a small Business owner that owns commercial real estate seeking an opportunity, here’s a knock worth a listen: small-balance commercial real estate loans.
Why? Market conditions are favorable for you to explore the small-balance commercial real estate space today for several reasons: growing investor appetite for small-cap commercial real estate; increase regulation and compliance for banks, rising residential mortgage interest rates on the horizon; and abundant small-commercial loan refinance opportunities with terms or payoffs coming due – just to name a few.
According to research firm Boxwood Means, small-commercial real estate transaction volume through mid-2015 is ahead of 2014’s record level, encouraging small-commercial real estate investors because of a wide gap between leasing supply and demand, rising rents, and growth in property prices.
Because you can
Did you know that multifamily properties with five or more units are considered commercial real estate? So while there may be some differences between residential and commercial mortgages, much of the process and approach is the same with multifamily loans. You may not realize how close you are to originating a commercial loan.