Commercial Mortgage Loans in 2009

Whether you’re in the business or are a property owner, trying to a get a commercial mortgage loan closed in this market, is akin to having a hyena as a house pet. You can do it, but it will be painful.  Here’s  what is going on, from a commercial mortgage brokers perspective. Conventional lending is all but dead. If your property isn’t less than 60% loan to value, you’re going to have a difficult time getting it closed. If you have a typical investment property (non multifamily like office or a warehouse), with a non national credit tenant(s), you had better have enough outside income to carry the loan on its own or you are going to have a tough go at it (though not impossible). Literally 80% of the banks either don’t want to lend or they can’t lend as their banking ratios have fallen below the feds standards. And or they just don’t have the cash… Many banks including some major national one have gone out of business, as its been well publicized. So you have to work with what the remaining 20%. Often times the offered terms are harsh and expensive. For those of you that are in the business you know that the conduit and or CMBS market is completely broken and nonexistent. It was literally down 98% in 2008 versus 2007.   98%… That’s according the respected Mortgage Bankers Association.The SBA and other more mysterious (and unpredictable government programs) have tried to step up and fill the void. In some regards its working in others it has been disappointing. For example SBA lending was down 60% as of May 2009 compared to the previous year. Ironically, this is when we all thought they would really kick in and save small business.Commercial Mortgage LoansWithout suddenly sounding optimistic one of the best things you can do for yourself is to work with the RIGHT bank and or lender. You need to only work with the 20% that are still actively lending. Conversely and especially if you are facing a balloon the worst thing you can do is tie up you loan request with a bank that is not aggressively lending. Most of these commercial mortgage loans end up in the decline category wasting months of time and thousands of dollars, at a minimum, for the borrower. For those that qualify for the government programs such as the SBA commercial loans, this can be a blessing. 85% – 90% financing is a life saver as property values continue to decline. In addition, the secondary market for these types of programs are the healthiest in the business and continue to improve. Our fearless leader, Obama, has step up the guarantee to banks as well as bought $15 billion of SBA 7a loans that had clogged the system in early 2008. By the way, the main qualifying component to the SBA loans is that your business occupies at least 51% of the buildings space. Contrary to their reputation, the SBA program have some of the easiest qualify standards out there, compared to other commercial mortgage loans.

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The Scenario of the Indian Furniture Industry

Indian furniture pieces are held in high esteem all over the world and spread almost throughout the country. However, Jodhpur in the state of Rajasthan is the main manufacturing hub for all wooden furniture products. Besides, the state is also a famous tourist destination with its majestic forts and palaces and of course the Thar Desert which spreads to Pakistan as well. Travelers from all over the world flock to Rajasthan, especially during the winter months.The Indian furniture sector is largely unorganized where manufacturing takes place mostly on a local basis. Wood, however, is scoured from all over the country and even neighboring countries like Myanmar and Bangladesh. Not only the big cities, small villages in the remotest corners of the country are renowned for the woodwork they produce and the craftsmanship they display on their products. The furniture sector functions mostly as a cottage industry where artisans and craftsmen work from small workshops.Needless to say, the price of wood, the basic raw material in making furniture, has escalated leaps and bounds in the last few years. While the government has extended all possible help to the furniture manufacturers, most of them are reluctant to adjust to the changing market. Wholesale Indian furniture dealers are however doing their bit to promote Indian furniture products at home and abroad.Furniture pieces made in India are still mostly popular as either a complete collection based on various themes or as standalone pieces. While there’s no denying the fact that Indian furniture has retained its popularity for ages in America and Europe, it’s also true that Indian wholesale furniture dealers have played a big role in popularizing Indian woodwork. If it were not for the wholesale Indian furniture dealers, the products wouldn’t have tasted success in the overseas markets.Furniture pieces made in India requires regular maintenance. Caring for Indian furniture requires a good degree of effort and is also quite a time-consuming affair. But once you take care of the furniture on a regular basis, you can be rest assured that it will last for decades, if not centuries.Furthermore, there is a tremendous scope to improve the quality of the products by installing modern and sophisticated machinery. This is something which most furniture manufacturers are reluctant to do. Even today, most the work is executed by hand which is no doubt an impediment towards increasing production capacity. As far as competition is concerned, wholesale Indian furniture manufacturers are up against countries like Mexico and Indonesia where the characteristics of the wood as well as craftsmanship is very high. However, Indian wholesale furniture products continue to remain popular because of its durable quality and inherent character.Furniture from India needs to cater to the changing demands of the customers. The furniture industries of the world are experimenting with several products that have caught the fancy of the buyers. Moreover, with the advent of more economical furniture like plastic and metal, wooden furniture is likely to face some tough times ahead.

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