JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said concerns about a “domino effect” in the commercial real estate sector are overblown and that a surge in defaults is simply a reversion to the mean, in contrast to many of his billionaire colleagues who have been sounding the alarm about what one of them called a “very ugly market.” Commercial property owners are struggling to hang on as a rise in remote work pushes vacancy rates to record highs and accelerates the expiration of 10-year office loans signed in the aftermath of the Great Recession, leading observers to draw…
Author: Private Lending Agent
Downward angle icon Downward angle icon. Jamie Dimon. Brooks Craft LLC/Corbis via Getty Images JPMorgan CEO Jamie Dimon said commercial real estate distress won't reach crisis levels. But he rejected analysts' estimates of a 70% to 80% chance of a “soft landing,” saying he sees “half of that.” He said he doesn't think regional bank problems will cause a “domino effect.” Jamie Dimon said the woes in the U.S. commercial real estate sector are not yet a full-blown crisis and would only worsen if the U.S. falls into recession. The CEO of JPMorgan Chase told CNBC on Monday that many…
FG Trade/GettyImages, Illustration: Hunter Newton/Bankrate Key Takeaways Alternative lending options are available online and through fintech. The requirements for alternative business loans are usually more flexible than traditional lending options, but they can also be more expensive. Merchant cash advances, microloans, and crowdfunding are examples of alternative lending. Obtaining small business financing can be difficult, especially as banks begin to tighten lending. Compared to Q3 2022, new small business loans fell 18.1% in Q3 2023 and were down 16.4% from Q2 2023. So what can small businesses do if they have a great idea but can't get approved for traditional…
Canadian pension funds are the world's most active buyers of real estate, kicking off a revolution that has inspired retirement funds around the world to follow suit.Now the country's largest pension funds are taking steps to limit their exposure to the most distressed property type: office buildings. Canada Pension Plan Investment Board has sold three discounted stakes in two Vancouver towers, a Southern California business park and a Manhattan redevelopment project. The New York shares sold for the eye-watering price of just $1. The concerns are that the deals could set an example for other big investors looking to exit…
The Elm is a 456-unit high-rise apartment complex in Bethesda, Maryland. Berkadia… [+] Institutional Solutions completed the sale in August 2023.Berkadia The commercial real estate industry has undergone significant change since the pandemic. Changes in how and where people live and work have brought many challenges. For commercial real estate companies, these changes have brought a new focus on data and technology to help the industry adapt to changing behaviors and market conditions. Damu Bashyam, CIO and Chief Innovation Officer, BerkadiaBerkadia Berkadia, a privately held joint venture between Berkshire Hathaway and Jefferies Financial Group, provides commercial real estate services across…
Dive Overview: Wells Fargo Chief Financial Officer Michael Santomassimo on Monday described current efforts to ease pressure on the commercial real estate market as “a long movie that goes a little bit past the opening credits,” expanding on comments he made during an earnings conference call last month. “We're not just getting started, but we've got a long way to go before we actually see a final resolution of a lot of the issues,” Santomassimo said Monday in response to a question from UBS analyst Erica Najarian during a conference call in Chicago. “There are maturities, there are extensions, there's…
Key takeaways Access to capital is one of the many financial challenges minority-owned businesses face Business grants are a great option for minority-owned businesses since they don’t require repayment Alternatives to business grants include business loans, business credit cards and crowdfunding Minority-owned businesses make up about half of all the new businesses created in the last decade. According to the 2022 Annual Business Survey from the U.S. Census Bureau, 1.2 million or 21 percent of employer firms are minority-owned. They’ve helped create nearly five million new jobs and generate close to $700 billion but still face significant financial challenges. Small…
(Source: Mortgage Bankers Association) Commercial mortgages tend to be longer term, with maturities spread over several years. The lack of transaction and other activity last year, combined with built-in extension options and lender and servicer flexibility, has resulted in many commercial mortgages that were scheduled to mature in 2023 being extended or modified so that they will now mature in 2024, 2026, 2028 or in future years. As a result, the amount of commercial mortgages maturing this year has increased from $659 billion at the end of 2022 to $929 billion at the end of 2023. The MBA’s latest report…
kate_sept2004/Getty Images; Illustration: Austin Courreges/Bankrate Key Takeaways Interest rates on SBA 7(a) loans range from 11.50% to 16.50%, depending on whether it's a fixed-rate or variable-rate loan. The SBA caps interest rates to make loans available to financially distressed businesses. Loans over $1 million must take into account the SBA loan fee, which is charged for guaranteeing and servicing the loan. As the Federal Reserve continues to raise interest rates to combat inflation, business owners are looking for affordable ways to get the financing they need to fund their operations. SBA loans are guaranteed by the U.S. Small Business Administration…
The Bellevue, Washington, home where Jeff Bezos launched Amazon from his garage went under contract thanks to some smart, old-fashioned marketing from a real estate agent. The immaculate garage of the renovated three-bedroom, two-bathroom home features a replica of Bezos' famous handwritten company logo from the 1990s, an idea hatched by real estate agents Lin Sheng and Mina Chang of Sea to Sky Realty in hopes of attracting buyers to the house, which Bezos reportedly once rented for $890 a month. Bezos set up a home office in the garage, making it Amazon's first official headquarters. Today, Amazon is one…