introductionIn the commercial lending world, the prime lending rate has traditionally been reserved for borrowers with the highest credit scores and deemed least likely to default. Borrowers with lower credit scores are typically charged a higher interest rate above the prime rate.The prime rate is typically 300 basis points (bps) above the federal funds rate target, but many financial institutions set their own bank-specific prime rate.To combat inflation and stabilise economic activity, the Federal Reserve has raised its target interest rate by 525 basis points over the past two years. The prime rate tracks directly with the federal funds rate,…
Author: Private Lending Agent
Broker Marsh said headline rate developments at renewal for U.S. commercial insurance lines will rise 3% in the fourth quarter of 2023, mainly due to an 11% increase in property rates. U.S. commercial property insurance premiums rose for the 25th consecutive quarter, matching the record for consecutive quarterly gains in commercial insurance globally (up 2%), according to the Marsh Global Insurance Market Index. The fourth-quarter U.S. property tax rate increase of 11% was in line with the fourth quarter of 2022 but lower than the 17%, 19% and 14% increases seen in the past three quarters of 2023. Marsh said…
Federal Reserve Chairman Jerome Powell has predicted that weakness in commercial real estate will likely cause more small banks to close or merge, but that the problem is ultimately “manageable.”The central bank official made the point in an interview with “60 Minutes” that aired Sunday night, Powell's first comments about the financial industry since fresh turmoil rippled through the stock prices of many regional banks.”I don't think there is a high risk of a repeat of what happened in 2008,” Powell said, referring to the financial crisis 16 years ago that led to the collapse of some of Wall Street's…
The current socio-economic situation has hindered many homeowners' plans to sell. This can be discouraging for real estate agents who rely on buy-sell transactions, but there are ways to encourage sellers to move. Many fears, most of which center around finances, run through the minds of reluctant sellers, but by understanding the source of their fears and learning how to help them reach their goals, you can overcome their hesitation. Why are sellers hesitant to sell? Today's real estate market, like many in the past, is rife with complex issues. Low inventory, rising interest rates, soaring home improvement costs, and…
Flipping houses, if done right, can bring in huge profits and help you make bigger profits. Flipping involves buying a property at a low price, investing in renovations, and selling it at a premium price. Not only is it a lucrative business, but it has other benefits too. If done right, you can remodel and remodel old or low-value properties, increasing their value. In this way, flapping helps you turn around stagnant inventory and give it new life.Reselling may seem easy, but it requires the right approach and careful planning to make a decent profit.Here are some proven strategies you…
Flipping houses, if done right, can bring in huge profits and help you make bigger profits. Flipping involves buying a property at a low price, investing in renovations, and selling it at a premium price. Not only is it a lucrative business, but it has other benefits too. If done right, you can remodel and remodel old or low-value properties, increasing their value. In this way, flapping helps you turn around stagnant inventory and give it new life.Reselling may seem easy, but it requires the right approach and careful planning to make a decent profit.Here are some proven strategies you…
When bank deposits barely produced any yields, commercial real estate became a haven for investors looking for a sure income. Then central banks raised interest rates, and many properties suddenly looked like bad investments. The problem was exacerbated by the decline in demand for large, centralized workplaces and retail spaces due to the rise in remote work and online shopping. Valuations plummeted, making it harder for landlords to refinance maturing loans secured by the property without violating their terms. One alternative was to sell, but the prices offered often did not cover the outstanding debt. By early 2024, banks caught…
Yolanda Duckett, founder of Duckett Kids Care (Dorgan Young/LABJ) It's been nearly 20 years since Los Angeles native Yolanda Duckett first opened Duckett Kidz Care Inc. Since then, she and a small staff of employees have been operating 23 hours a day, seven days a week, except for major holidays, from her South Los Angeles home. “I have the capacity to handle 14 kids at a time, but the nature of childcare means they don't all come at the same time and it varies from day to day,” Ms Duckett said. As business continued to grow, Duckett wanted to expand,…
Pacific Northwest Real Estate Market in February In the Pacific Northwest, February often sees the start of an early spring market, and while 2024 trends may not become clear until the March holidays, February sees early activity begin. Salt Spring Real Estate Market – Early February Here's what we'll see in Salt Spring's real estate market in early February: The trend of low inventory continues, a trend we've seen in competing Vancouver Island communities. The property shortage isn't just a Gulf Island issue. Why owners are hesitant to sell There are many reasons why owners may not want to become…
Akio Kon/Bloomberg/Getty Images Aozora Bank's head office in Tokyo on February 1, 2024. Story Highlights Shares of New York Community Bancorp Inc. plummeted after the regional lender reported an unexpected $252 million loss last quarter. Major bank indexes pared losses, but individual bank stocks are still seeing some rebound. NYCB figured prominently during last year's banking crisis, but some analysts expect the turmoil will pass. CNN, London — Nearly a year after the banking crisis that led to the collapse of three U.S. regional lenders and the emergency takeover of Europe's Credit Suisse, a new chill is spreading to banks…