Jacob Frydman on Financing Options for Purchasing Commercial Real Estate

Robust job growth, a surge in gross domestic product growth to 4.2% in Q2 and favorable regulatory and tax policies have resulted in strong commercial real estate (CRE) fundamentals as of late, discussed New York-based property exert and CEO of Frydco Capital Group, Jacob Frydman, “2018 has been the strongest year of economic growth this cycle, with sales transactions up to $236 billion in the first half of 2018, up 4% compared to 2017, which was a record year.” With interest in CRE is at an all-time high, Frydman laid out several financing options for individuals seeking to purchase their first commercial property. Just as with home mortgages, banks and independent lenders are actively involved in commercial real estate, said Jacob Frydman. Insurance companies, pension funds, private investors and other sources, including the U.S. Small Business Administration’s 504 Loan program, also commonly provide capital. In contrast to residential mortgages, which are typically made to individual borrowers, CRE loans are often made to business entities (corporations, developers, limited partnerships, funds, trusts, etc.). An entity is not required to have a financial track record or any credit rating, however the lender may require the principals or owners to provide a guarantee, or an individual or group with a credit history from whom they can recover in the event of default. If this stipulation is not required, and the property is the only means of recovery, the debt is called a non-recourse loan, meaning that the lender has no recourse against anyone or anything other than the real estate.

Real estate acquisitions and investments expert, Jacob Frydman is the Chairman and CEO of Frydco Capital Group and a frequent guest on Fox News, Bloomberg TV, CNBC and other television news outlets. Over the span of his 30-year career, Frydman has acquired more than five million square feet of real estate, and participated in transactions valued at over $2 billion. His prior notable transactions include the Global Crossing New York Headquarters, the Aetna Building, NBC Television Studios, and Two Dag Hammarskjold Plaza.

Jacob Frydman – CEO & Chairman – United Realty Advisors, LP – LinkedIn: https://www.linkedin.com/in/jacobfrydman

Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman

Jacob Frydman – Examines Potential for Real Estate Investors in the Wake of Inflation Protected Renting

Jacob Frydman has repeatedly warned that an inflationary period in the real estate market is inevitable, at least in part due to rising interest rates. Rates have remained low for quite some time, aided by the Federal Reserve, but are slated to rise and bring property values up. However, Frydman points out that the market is by its very nature cyclical and provides tremendous opportunity even with expected downturns. “What’s ultimately going to happen is an inflationary cycle not unlike what we were experiencing in the late 70’s and early 80’s,” he told an interviewer at Real Estate Finance Intelligence TV. With this in mind, Frydman advises potential investors to purchase properties while the costs are still relatively low and strengthen their asset values during the transition period from one cycle into the next until the market reaches a new high again. Frydman predicts this next peak to take place by the end of this decade.

Jacob Frydman has over 30 years of experience in structuring, financing, and executing highly complex real estate transactions. He is credited with acquiring over five million square feet of existing and to-be-developed holdings located on the east coast of the United States, and has participated in property transactions valued at over $2 billion. Frydman was the CEO and Chairman of First Capital Real Estate Trust, a public Real Estate Investment Trust, and continued on as Chief Investment officer after his retirement in September 2015.

Jacob Frydman – CEO & Chairman – United Realty Advisors, LP – LinkedIn: https://www.linkedin.com/in/jacobfrydman

Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman