Something that we are seeing more of is a rise in delinquency rates. This recent trend of past due payments is recurring for a reason and could possibly be a sign of that a declining economy is in the near future. Many of these Texas Commercial Real Estate Loans were established about 10 years ago, during the hard times of 2006 and 2007. Since the due dates for these loans are starting to come up, some businesses are struggling to pay them off.
Of course, this is a common thing that happens from time to time. It is the never-ending cycle of the economy. A decline in the economy and in Texas Commercial Real Estate Loans occurs about every 10 to 15 years and it is currently due time for a shift in the economy. But investors and banks are hoping we can learn from previous tough times and take a good look at the forecast to prevent any drastic declines.
Luckily, so far, we haven’t seen any big decline in loans, but there also hasn’t really be an increase in them either. Things have been stable lately, but we are hoping to see more growth before a decline. This way we have the leverage to be able to bounce back quickly when the tough times do hit. It will always be inevitable because of the never-ending cycle. Lenders and banks hope to learn from previous mistakes and focus on preparing for the worse, while hoping for the best.
It is a good sign that the unemployment rate currently continues to drop, which increases the demand for more office space. This is beneficial for the future because more businesses are going to be looking for Texas Commercial Real Estate Loans. But there is a little bit of bad news, with some forecasters are predicting that we only have about 2 years left before the cycle takes a dip again.
With so many factors playing a role in what happens with the economy and Texas Commercial Real Estate Loans, it can be hard to always correctly predict the future of the cycle. Forecasters so their best taking into consideration things like the global economy and foreign investments along with other factors like politics. All of these things help dictate which way the economy will go. But hopefully with supply and demand spikes in the real estate industry, we will continue to see a booming economy in the future.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.