May Insights Newsletter
There’s a surge in capital availability right now, but it won’t last long. What’s driving this trend, and why should you act quickly? With shifting market conditions, savvy investors are jumping in before the next change. To help you stay ahead, we’re excited to offer our new 9.25% bridge loan program, designed to help you secure opportunities fast.
Low Spreads, High Liquidity – How Long Will Financing Goldilocks Last?
Anyone in the CRE and investment property space knows that we’ve been on a wild ride over the past few weeks. Liberation Day looked more like Armageddon Day if you checked the public markets, but things have somehow normalized in the debt world despite the outlook becoming murkier than before.
Shocks Create Debt Market Whiplash
Loan spreads and reference rates ballooned in early April. While spreads have returned to their “pre-liberated” levels, rates have ticked up due to a combination of trade war talk, US Debt downgrades, anddecreasing foreign holdings of US Debt.
Liquidity Returns with Banks Back . . . For Now
Overall, there is plenty of capital in the space, with CRE originations up 42% in Q1 from the prior year, and banks rising 56% from Q1 2024. Banks have been on the sidelines for long enough, and those with balance sheets to lend are competing for business.
This trend will hold tight as long as banks can balance capital requirements, liquidity and rising delinquencies. Those that have been sidelined are now seeking fee income and growth to satiate their investors.
What’s Holding This Together? A Delicate Balance
The current resurgence is on fragile footing. Capital requirements, liquidity management, and a rise in delinquencies are the storm clouds forming. The companies leading the charge can manage all three effectively.
Act Before the Next Wave Hits
With the path forward uncertain, now may be a good time to take advantage of available capital while it remains and before the wall of maturities, a potential recession, and negative consumer sentiment materially impact the market. Competitive terms and eager lenders may not be around after the next shock hits.
Investor Insights
Fidelity 9.25% Bridge Program
Fidelity Bancorp Funding now offers bridge loans starting at 9.25%! Bridge loan spreads have compressed providing a short-term borrowing opportunity.
9.25% Interest Rate
Loan Sizes from $1M to $20M
Up to 65% Loan-to-Value
12-Month Term (longer with approval)
Direct capital with closings in as little as 10 days
How this helps your next deal:
Our lower rates provide immediate leverage to strengthen your bids and access more affordable capital. Whether repositioning an asset or bridging to a permanent loan, our efficient process, fast closings, and deep market expertise ensure a smooth and certain transaction.
Get a free and no obligation quote. Simply reply to this email or click here to see how the lower rate can improve your returns.
Loan of the Month
$6 million bridge loan funded in under 30 days for a single-family residence in Newport Beach, California. Tara Sauerbrey expertly worked with a repeat borrower to deliver efficient execution under a tight timeline.
