Loan Consultants

Archive for January, 2012|Monthly archive page

The Loan Consultants, Inc. – Message From The Company President

In Uncategorized on January 17, 2012 at 8:02 pm

One of the things I enjoy most about my position with The Loan Consultants is the opportunity to speak with our Brokers operating all throughout the U.S and Canada. Our affiliates come from all walks of life and I always enjoy hearing about their experiences since we helped them get started in the finance industry. Among the most common questions I am asked lately is, “Where do you think we should focus our efforts in 2012?” Rather than continue to answer that question one-on-one, I have decided to make it the subject of this months’ blog post. The answer is… Commercial Real Estate Loans!

That’s right, we are predicting that the Real Estate market will finally bottom out this year and that should mean an abundance of deals for our Brokers. Now that I have said this, let me clarify that I am not predicting the market will be like 2006 all over again.  In fact, that is the last thing we want since many of the real estate loans made during that period are the very reason the market collapsed in the first place. Those loans resulted in some areas of the U.S., such as Las Vegas and Phoenix, Arizona, being badly overbuilt during the boom and are probably another 12 months away from recovery.

Still, many markets have shown signs they are bottoming out and others are seeing significant increases in demand. San Jose, California, which is supported by a strong technology based economy in the Silicone Valley, has maintained relatively low unemployment, strong housing demand and high commercial occupancy rates. Along the US/Canadian boarder, new energy exploration has created a booming market in Manitoba and North Dakota. With hundreds of thousands of government workers and contractors in the region, the Northern Virginia/Baltimore/Washington D.C. area has also remained solid.

Despite what you may think, 2011 was a actually decent year for the commercial real estate market but much of the activity was driven by bargain hunters taking advantage of reduced prices and low interest rates. As the global economy continues to improve though, 2012 should see a significant uptick in demand for retail and light industrial space causing many of the “fence sitters” to get back in the market.

In response to this anticipated demand, The Loan Consultants has added several new commercial real estate lenders to our database. Be sure to log into our broker support site and download the most current version.

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