Last month, the Federal Reserve released its Financial Stability Report. In the report, the Fed cited historically high debt owed by businesses in the United States and increased approval of traditional loans for assets, such as commercial properties. Analysts are pointing to this report as a means for the Fed to implement more interest rate hikes in 2019.
2018’s Cautionary Tale of Bank Loans
2018 was a bit of a paradox for NYC property investors. The economy was strong, there were plenty of commercial real estate opportunities, newly created zones in Brooklyn, and the great announcement of the Amazon campus, which is going to boost the need for new construction in the city. At the same time, the Fed introduced no fewer than three interest rate hikes on bank loans, citing inflation as a reason. Traditional loans are very difficult to get for commercial real estate transactions and development projects, and higher interest rates have been forcing NYC property investors elsewhere. Unfortunately, 2019 looks like it will bring more of the same, including the rate hikes on bank loans.
The 2019 Strategy for NYC Property Investors
With increasing opportunities, everyone from new property investors to seasons pros are looking for funding strategies that don’t involve taking out traditional loans and subjecting themselves to interest hikes. Of course, they also don’t want to place a strain on their own finances by funding projects entirely out of pocket. The optimal strategy is to find an agency that specializes in commercial real estate solutions tailored for NYC property markets. Traditional lending channels understand bottom-line numbers, not commercial real estate and construction. Traditional lenders have an internal bureaucracy, so windows of opportunity are missed because loans are caught in the “processing” phase. Commercial real estate lenders provide fast and efficient solutions without any of the red tape.
Express Capital Financing offers funding for NYC property transactions of all sizes. From acquisitions to renovations and even large-scale construction, Express Capital Financing offers the right solutions tailored to the size and scope of your project. Don’t get caught by unexpected interest rate hikes – get the right financing for your next property transaction and make 2019 an even more lucrative year.