Founder & Managing Partner, JSR Capital Group | Turning underperforming assets into high-value properties | Solving complex CRE challenges | Driving strong investor returns | Board Member
As we wait for the numbers to drop—and watch them stubbornly stick or rise instead—one thing's for sure: there’s no one-size-fits-all in commercial borrowing rates. If you're looking to lock in a fixed-rate commercial loan then, yes, the Treasury bond yield will be the main interest rate driver. But there's a chunk of what you'll pay that's personal—dependent on your financial health, experience, and the property itself. Who you are, what you’re buying - and the risk all that entails: ?? Your Financial Profile: Strong credit and a solid track record can get you better terms. Expect higher rates if your finances aren't so great. ?? Your Experience: Lenders favor experienced investors. If you're new to the business or recovering from a bad time, lenders may price that in. ?? The Property: Prime, fully-leased properties get better rates. You'll probably pay more for risky or distressed assets. ?? Loan Structure: Higher loan-to-value ratios typically mean higher rates—again, lenders need to make sure they're covered. And etc. (this is a simplistic view). So... waiting for the perfect rate to make a move? It may never come. But you can almost always find an opportunity to create value. #CommercialRealEstate #CRE #InterestRates #CreateValue
CPA, CFO, Tax Pro, Bookkeeping & Accounting
4 个月Great insights! Understanding the nuances of commercial borrowing rates can really help investors make informed decisions—thanks for sharing!