September 2016 Archives

Bubble fears prompt growth in nontraditional CRE financing

Business experts have noticed that commercial property developers in Illinois and around the country have begun to turn to private lenders like real estate investment trusts and hedge funds because stricter underwriting standards have made traditional financing packages more difficult to obtain. The Office of the Comptroller of the Currency has asked banks to be more thorough when issuing commercial property loans to protect the economy from another financial meltdown. This has opened the door for non-traditional lenders who do not operate under the same constraints.

CRE investors who buy online should be cautious

Commercial real estate practices are evolving, and the online arena may become a new market focal point for Illinois investors who are seeking fixed income. Online lending platforms offer a number of distinct advantages, including the ability to invest in a wider variety of CRE debt vehicles. These forms of debt have traditionally been hard to get involved in unless investors were willing to put money into mortgage REITs, but with online investing, more people can potentially enjoy profitable yields.

Illinois investors advised to look to novel markets

While big cities have traditionally been strongholds of investment opportunities in commercial real estate, experts say the focus is shifting. Now, investors who once concentrated their activities in large urban areas are hunting for deals in medium-sized cities. According to some analysts, smart entrepreneurs should stay on the lookout for markets that exhibit a combination of rents that are starting to increase and low property prices.

Food trucks as first-time commercial investments

Some people in Illinois might wonder whether a food truck represents a good first-time investment opportunity due to their lower costs compared to a restaurant. The sector is also growing rapidly. A food truck can be a sound commercial investment, but it is probably best for someone who is already passionate and knowledgeable about cooking and the food business.

Strategic planning and questions to ask

Illinois businesses are likely gearing up for their strategic planning sessions as they look toward 2017. When owners consider the right questions during these sessions, they are more likely to develop plans that can help their companies to grow substantially rather than inching forward.

Reclassification means changes in real estate market

Illinois residents who are interested in investing in real estate might be interested to learn that the market is poised for a change. Starting on Sept. 1, real estate has been moved into its own category separate from financials by two leading indices. Real estate has consistently done better than than the S&P 500. Mortgage real estate investment trusts will not be included in the new category, but all other REITs will be.

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