Commercial property owners, we know times are tough. Your rent roll might be down, you might have tenants begging and pleading for a break and the value of your property is taking a hit – according to the Wall Street Journal, an average of 43.7%.
As such, like homeowners everywhere, the idea of restructuring your loan in a manner that is more affordable is an attractive possibility.
Commercial loan workouts are gaining steam. A lot of loans were done in the mid 2000s that are turning out to be unfavorable and because so many of them are non-recourse, banks are having no choice but to work with you.
Case in point, we recently had a client come to us with a couple of retail properties that he needed help with. His mortgage payment was too high and refinancing had been deemed impossible. Enter the commercial loan workout.
Once we put a solid package together based on his cash flow situation and a couple of other influential factors, the bank quickly saw the value in getting something done. In fact, the process went smoother than most residential deals and in the end, our client had cut his monthly payment by 25%.
Think a debt restructuring like that might make a difference to your cash flow situation? Probably so. Learn more about our commercial loan workout program.
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