The ECB lowered rates by .25% today and raised inflation projections from 2 to 2.2%. Our economy obviously does not follow that path, but each government looks to other governments methods to see how it plays out, so this should be an interesting process to watch. Ultimately though, if at this point in the cycle, you are still playing the “rates will drop soon” game, I strongly recommend you reconsider. Depending on the Fed to change policy as your economic strategy has proven out to be the wrong strategy. Continue to monitor the rate progress, but continue to plan for rates being elevated for a long time.
关于我们
Your partner in financing. At Fortune Capital Group, we believe that our partnerships and people are invaluable assets. We specialize in tailored financial solutions for commercial real estate ventures. Our seasoned professionals combine industry knowledge with innovation to deliver unparalleled service. From acquisition to development financing, our comprehensive suite of services meets diverse needs. We leverage our extensive network of lenders to negotiate favorable terms for our clients, ensuring access to a range of financing options. Partner with Fortune Capital Group for personalized attention, transparent communication, and exceptional service. We're committed to building long-lasting partnerships based on trust, integrity, and mutual success.
- 所属行业
- 房地产
- 规模
- 2-10 人
- 总部
- Brooklyn，New York
- 类型
- 自有
- 创立
- 2019
地点
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主要
获取路线
164 20th St
US，New York，Brooklyn，11232
动态
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City fehps and fehps landlords, let us help you.
In a market where value itself is challenging to find, and rent growth is flat, there are not many ways to find value add. One way we have been seeing clients find value is through various government funded rental programs. Section 8 has been the go to, but over the past few years, the city of NY has introduced a couple of voucher programs that have allowed landlords to rent apartments to tenants at rates that actually allow for value creation. We have built and expert network of lenders, leasing agents, and industry experts. If you own a building with fehps, city fehps, or any other city led program, let us know. Whether it’s ground up construction, bridge, or perm debt, we have experience financing these assets. We would be happy to lend our expertise to ensure that you receive the best financing product available in the market. Michael Helmreich Fortune Capital Group #commercialrealestate #commercialmortgage #cityfehps #fehps #nyc #nycrealestate
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How can we help?
We have actively been underwriting our clients portfolios to assess where their financing is and will be over the next year or two. As the reality of the market continues to evolve, creativity and deep market knowledge has never been more important. The big story is floating rate debt. Even a very savvy borrower can be up against a rate cap expiration, and dealing with more than double their original monthly mortgage payments. It’s ALWAYS easy to point fingers. It’s a lot harder to take accountability. But those that do, work through problems instead of around them. Simple solutions can start with something like a principal pay down, a lender finding a way to fix the floating rate even thought they’ll need to take a hit on their return, or a conversation about a sale if there’s still equity in the asset. Bloodbath? Absolutely. But ignoring will just make matters worse. Let us help you come up with a solid game plan as to how to navigate the next year or so. If this can help you, reach out to myself [email protected] and 973-713-6673, or Michael Helmreich [email protected].
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Let's Make A Move Together
Some good news in the market. Things are stabilizing. Not where we all wanted them to end up, but at least they seem to be settling. Yes, there will be pain, but a clear picture is much better than a murky one. We signed up a construction completion loan last week with ~9% money. $11.5MM Loan. Another deal, mixed use, cash out refinance for $12mm. There is money in the market. Make a move. #commercialrealestate #constructionfinancing #constructioncompletion #debt Fortune Capital Group Michael Helmreich
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PSA time
PSA: No one knows where interest rates are certainly going. PSA: If your loan is coming due and you ignore that fact, thinking that the lender will be “cool” with discounting the principal balance or interest due, you are wrong. Imagine an environment where thousands of loans are coming due, and somehow your loan is special so they’ll be ok discounting it. Be smart, talk to your people, prepare in advance, and be ready to either show up with a liquidity injection, or a very very good strategy as to how you will be able to work with the lender to make sure they recoup their loan. The strategy of interest rates dropping has so far proven to be slightly faulty ??. Always happy to go over numbers and see where your debt shakes out today. We have a team in place doing this for a great percentage of our clients, and costs you nothing. Except the headache of being prepared. Fortune Capital Group #interestrates #debt #commercialrealestate
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What we’re seeing in the market Fortune Capital Group - CMBS seems to be the only lender that can get even remotely close on proceeds - There are banks still in the market. Generally banks that historically have been more conservative, so haven’t been hit with the issues the more aggressive lenders are facing, so terms are more conservative and they are more cautious. - Fehps is still a solid cash flow play - Treasuries are up this week. Keep that in mind for debt cover issues in regards to proceeds - Construction lending is available and something banks are leaning into right now - Agencies still want business Michael Helmreich Jake Gluck
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CMBS Underwriting There are many different factors that play into how a lender determines how much debt they are willing to lend you. One of the factors is your debt service coverage ratio, a factor of your amortization, interest rate, and NOI. In a market like today, where clients have loans coming due with 3% interest rates, this can become a significant issue, being that NOI growth couldn't possibly keep up with an increase of at least double on the debt payment side. An interesting solution that has become prevalent in the market is CMBS and funds. Where most banks determine your debt coverage based on a 30 year amortization, CMBS can offer full term IO, and actually underwrite to that number. For example, on a $20MM loan, at a 3.25% interest rate and a 30 year amortization, your mortgage payments would be $87,041 monthly. At a 6.25% rate, it would be $123,143. That would mean you would need to have grown your NOI by at least $500k if you are UW to a 30 year amortization. Underwriting based on IO however, your monthly payments would be $104,371, and your NOI would only need to have grown around $300k. CMBS lenders, and some funds we work with, have become the go to option for clients that are in this position and trying to reach their highest capitalization.
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Fortune Capital Group along with our partner, Alpha Realty , is a corporate sponsor of the ReDeal Conference . We would love to connect with lenders, brokers, owners, and anyone else that we can align with in the industry. Shoot us a message to set up a time to meet. Michael Helmreich Lev Mavashev
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I wanted the first post on our Company Page to be a quick blurb about what we do. Future posts will be educational for anyone involved with or looking to get into the industry. Fortune Capital was founded on the belief that Commercial Mortgage Financing is a relationship business. We are focused on the $1-100MM space, and have executed on asset classes nationwide excluding hotel and Healthcare. We recently updated our lender roster, and it includes close to 1,000 lending relationships we have cultivated over our combined 24 years in the industry. Agency, CMBS, ground up construction, construction completion, renovation, land, and shockingly we still have banks that are actively lending in NY and nationwide. Please, at any time, feel free to DM for business or industry advice. We believe that there is enough business for everyone, and that giving is the foundation for success. If you are a broker, either sales or debt, we are happy to assist with any questions you may have. Looking forward to connecting with all of you in a productive and meaningful way.