Amid Economic Uncertainty, the Long View is the Smart Way to Go
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As we come to the end of 2022, interest rates are up and prospects for the economy are uncertain. For every bit of good economic news, there is some bad news. And somehow, good news can be bad news and bad news can be good.
Guarded optimism prevails in the current CRE landscape.
The Urban Land Institutes Emerging Trends in Real Estate, just published for 2023, reflects this uncertainty. Cap rates are up, values are down, and underwriting standards are tightening. Still, the ULI report, based on survey responses from 1,450 individuals from across the commercial real estate industry, reflects a “consensus mood…of cautious optimism that we will ride out any near-term slump and be well positioned for another period of sustained growth and strong returns.” If we are headed toward a recession, “most economists, as well as Emerging Trends interviewees, expect any recession to be relatively short and shallow.”
Hindsight is 20/20.
All of this makes sense when you consider that commercial real estate requires a long view. Projects take a long time to develop and build, and the assets that are created themselves have a long life. Even buying or selling commercial real estate takes longer than for any other financial asset. You have to take the long view. One Emerging Trends survey respondent said it best, “The recession - if we go into one – will obviously impact some markets worse than others, but it’s just like anything else. We’ll look back in ten years, and the prices that seem astronomical today will seem like a bargain ten years from now.”
Time-tested, proven, and safe lending solutions.
For more than thirty years, we at AGM have taken the long view. Our clients have as well. They have come to us for long-term fixed-rate FHA financing for their multifamily projects because they want to build long-term assets and generational wealth. They count on consistent underwriting across markets and across time, and they count on AGM to get their deal done. Those same clients – and many new clients – are developing new projects today amid uncertainty because they take the long view.
Whether markets are down or up, you can rely on AGM.
As a family-owned FHA lender and GNMA seller/servicer with over 30 years of experience, we know the process inside and out. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. We've closed more than $9 billion in FHA-insured multifamily loans nationwide. And we’re proud to say that more than 60% of our borrowers are repeat clients. Count on our experienced team to guide you through the FHA financing process and help you get the deal done.
With time on your side, it’s wise to put the wheels in motion for the inevitable economic upturn. AGM will partner with you to get an attractive multifamily loan you can count on. Please contact our helpful team today.
About AGM Financial
Founded in 1990, AGM is a leading FHA lender and GNMA seller/servicer. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. Family-owned with over 30 years of experience, the firm has closed over $9 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.
