The commercial real estate industry is split on the wisdom of making middle market/small balance loans (MMSB). For the purposes of this post, we define MMSB loans as any loan under $20 million. Many mortgage bankers, lenders, and brokers view them as inefficient to invest in, broker, and or place. On the other hand, there are those that use a workflow that streamlines the process of administering MMSB loans, making them quite efficient. Even in today’s volatile climate, the MMSB…

These unprecedented times have many of Slatt Capital’s clients asking questions to help them understand where things stand in the lending market. We have compiled some of the most common questions we’ve been hearing and wanted to share the answers here: 1. Is there any liquidity in the market for commercial real estate financing? The short answer is yes. All major property types are financeable, although hospitality properties are the most challenging, followed by retail since these properties have been most…

The negative economic news caused by the COVID-19 pandemic has held the benchmark 10-year treasury to all-time lows, closing today at 0.62%. Lenders typically price their loans with a “spread” over their benchmark index. The 10-year U.S. Treasury is the common benchmark used in long-term fixed-rate financing. Many factors affect the margin or “spread” that lenders change over their benchmark to come up with the interest rate that the customer ultimately pays. Factors include: 1.    The current supply of…