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The 10-year yield continues to remain low even with the various FED rate increases this past year.  Now going forward, there seems to be a lot of talk about reducing the number of FED increases.  Apparently, the FED does not want to be blamed for rolling us right into a recession.

There is a bit of concern with the government shutdown.  I know in the residential lending market there is some difficulty in getting tax information verified.  In addition, SBA loans are on hold until the shutdown is over.  Eventually, this shutdown will cause havoc for more and more people.

Advising in the CRE Lending Space where Reputation Matters

As my years in this business continue to grow, I find it interesting that my message is now carried out to potential new clients more and more by my business partners.  It certainly makes my job easier as the clients that are brought to me already know why we need to work together.  Often, it is all about finding a way to set a strategy that will allow the client to succeed.  They have been told that I am a straight shooter; and I will tell them exactly what I would do if I was them and why.  They also know that I am transparent.  They get to know the good and the bad as we set a strategy and then implement it.

Now do I have all the answers?  Of course not.  However, my reputation for doing exactly what I say allows me to help even when I do not know the answers.  Now do I have the ability to get the answers quickly?  You bet!

Look, I really never know what I am planning to write in this blog/email.  For some reason, this topic popped into my head.  I appreciate working with business partners that all share in the belief of protecting the client.  Some of these partners have a lot of experience and we can work on more complex deals.  Then there are others that have heard about me and want to bring me in as they want to help their clients succeed.

A few weeks ago, I was referred to a CEO who wanted to buy some apartment buildings.  He had a lot of experience owning single family rentals, but not apartments.  We had an hour-long conversation on pretty much commercial real estate 101 and lending.  I gave him pros and cons on several approaches.  Near the end of the chat, he asked me why he should use me instead of his local banker.  I have to admit it made me laugh.

I told him he would use me if he valued the way I think and the advice I just gave him.  I stated he must be a bright guy who surrounds himself with strong people who can help his business succeed.  He told me that was very true.  I then explained that owning investment real estate is a business.  You need to treat it as such and surround yourself with great people.  You will incur challenges along that way that require creative problem solvers.

I then attempted to tie things together and swing back to his question as to why use me versus his banker.  It all comes down to if you can find someone who will give you advice, look to keep you out of trouble, treat your investments as their own, and have the ability to find competitive terms/rates.  If your banker has all those abilities, my business experience, and my values, then use them.  He then chuckled back as he had his answer.

That’s it for this week.  As always, feel free to give me a call with any of your strategic financing needs.

Articles of Interest:

The SJ Mercury News reported “San Jose’s big El Paseo de Saratoga mall is bought by busy developer.”

Yahoo Finance reported “Exclusive: Amazon eyes closed Sears stores for Whole Foods expansion.”

The SJ Mercury News also reported “Google effect spurs downtown San Jose gold rush.”


See the table below for approximate interest rates.



Type Rate Fixed Term
Apartments 4.225% – 4.790% 3 to 10 year (30 yr amortization)
Commercial 4.525% – 5.090% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options
SV Commercial Lending