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Corona Virus Taking a Toll On Commercial Banks…and Indirectly Impacting Landlords of ALL sizes.

With the slow down of the economy over the last 30 days landlords are being impacted in a number of ways from delayed rent payments to issues processing evictions. One issue also impacting landlords, but maybe not so obvious, is the fact the landscape for commercial loans has changed dramatically. Overnight many banks have increased their rates by 1%, cut loan amounts drastically, and changed the fundamentals of how much cash reserves they require a borrower to have in the bank.

How does that impact you if you are not in the market for a new loan?

It impacts the product you own and will force CAP Rates in an upward direction which means a hit to property values. Bottom line- whether you plan to buy, sell, or hold real estate, the commercial lending market impacts you as an owner of multi-family properties.

In today’s show, I interview Gil Figueroa, 30-year Commercial Broker Veteran, on all things multi-family. We cover everything from the new lending requirements, problems with forbearance agreements, to ensuring you maximize profits in these turbulent times. The next few minutes will empower you as a consumer, landlord, and investor.

In TODAY’S VIDEO we cover:

  • Why have commercial banks increase their interest rates and what can that tell us about the economy
  • How the new terms to qualify for a commercial loan will impact property values
  • How much cash reserves you must have in the bank not only to qualify for a loan, but to ensure you can weather the storm ahead
  • Why you should avoid forbearance agreements at all costs 
  • And Much More…

Let’s face it, in light of recent events life has changed as a Landlord. Tenants have suffered substantial job loss given the recent economic crisis, which in turn is causing a loss of rents for landlords. Not to mention all the various other items that will impact landlords such as no eviction policies, tumbling property values, and rising interest rates.

Bottom Line –  As Landlords, we need to know how to deal with the crisis at hand, design a game plan to mitigate our losses, and prepare for the opportunities that exist in the days ahead!