How does the coronavirus affect the CRE Market?

1 in 80,000,000... That's your odds of dying from the Coronavirus (COVID-19), according to the latest stats.

1 in 75,000,000... That's your odds of dying from an asteroid hitting the earth (or hitting you), again according to the stats.

As you no doubt have noticed over the past couple of weeks, our world is in complete pandemonium right now. Whether this is warranted or not... well, we'll let you be the judge of that by digesting the above statistics for a moment.

At Fountainhead, we feel as though folks may have overdone things just a tad in getting this hysterical about the new virus. If you’re elderly or already immune-compromised, then it’s a much bigger concern, and we sincerely hope this event passes soon with as little loss of life as possible.

But, what I can say with complete confidence is that when panic ensues, history tells us that THIS is the best time to buy assets (such as commercial real estate). And with the flight to safety that we’ve seen in the markets (pushing down lending indices), the result has been the LOWEST rates we’ve ever seen in the entire history (35+ years) of the SBA 504 loan program (currently 2.88% fixed for a 25-year debenture).

So apologies for being somewhat blunt, but NOW is the time to promote CRE acquisitions and refinancings to your clients. If you or they are not on the Apocalyptic bandwagon, then this may prove to be a once-in-a-generation opportunity. I DO expect things to bounce back sooner, rather than later, however, so if you’re to take advantage of the current state of affairs, you’ll have to act now and act fast. Unlike many commercial lenders presently paralyzed by the Panic (and not lending), we remain available and committed to helping you and as many business owners as possible in taking advantage of these opportunities.

If you have questions about how to help your clients benefit from our SBA 504 loan program or our conventional loan program (we refinance a LOT of higher, floating-rate, real estate-backed 7(a) loans, too), then let's chat right away. Schedule a call with me and let's get you on your way to a quick and smooth closing. Take advantage of today’s opportunities while you can!