Residential and Commercial Properties Forecasts for the Coming Year

Think Outside The Bank

Residential and commercial properties continue to climb in values with the lack of inventory pushing the demand. When opportunities to purchase or refinance arise, conventional lending is not always available with the banks’ strict lending policies and guidelines in real estate loans. Institutional and hard-money or private lending becomes attractive. This past year has seen more institutional and private lenders enter the market than we have seen in years. Why? Short-term capital is available for income-producing real estate investments and investors can move quickly with hard-money loans.

These are some of the forecasts for the coming year 2018:

  1. The long-term economic outlook is weak with record high levels of debt,
  2. The money supply growth is decelerating at an alarming pace. Valuations are near record highs despite a risky economic backdrop,
  3. Contracting loan growth and falling income could keep the core inflation low,
  4. Next year, 2018, will see lower levels of growth and inflation compared to 2017.

Island Funding Group continues to provide institutional and private lending sources for investors needing mortgages for real estate investment purposes, fix-n- flip, and construction.

We are confident and expect hard-money lending to become more eager and aggressive as the Federal rates increase, along with continued declines in inventory. We are “thinking outside the bank”.

Have a very Happy Holiday Season and let’s look forward to a prosperous New Year!