A couple of weeks ago President Obama was on one of the last Jon Stewart shows. John Stewart gave him a bit of stick about inadequate VA services, but he let the POTUS get away with saying, “… the Economy, by every metric is better than when I came into Office, and so, the reason I can sleep at night is I say to myself, ‘you know what, it’s better.’”
Most people hate statistics, which is why comments like this can be let slip by.
There is a “metric” though the President either missed, wasn’t made available to him, or if it was he chose not to look at.
That is, the labor participation rate.
According to the US Bureau of Labor Statistics labor participation has been in decline since February of 2000, when it reached a high of 67.3%. Today labor participation is at a new low, not seen since the 1970’s, of 62.6%.
Of the 250 million people of working age in the U.S., 149 million of that total number have a job. 8 million people want a job, but don’t have one. However, there are 93 million people who don’t work, and don’t want to work.
That last figure should cause an Apartment entrepreneur pause.
Despite all the Federal Reserve huffing and puffing about its dual mandate and 5% unemployment, about 30% of the entire U.S. population, who are of working age, do not consider themselves part of the work force.
This is a staggering number.
Getting financing is a key part of buying an apartment building. It’s a big part of “where do I get the money”, which is probably preoccupying most of your thoughts going into a deal.
A lot of this can be solved with a good mortgage broker.
Your local bank may have a commercial mortgage loan officer and because of your familiarity with the bank and the staff there, you may be tempted to try and finance your transaction with them.
Tip: Resist the temptation. a) because they likely only have loan programs that apply to fully stabilized property, and b) because if you don’t qualify for the few programs they have they will say you can’t get financing for your deal.
Instead work with a commercial mortgage broker to finance your deal; ideally one with a “can do” attitude and creativity.
Commercial mortgage brokers have hundreds, often thousands of commercial mortgage programs to choose from, not just a few as with your local bank. Whatever the nature of the property you are buying, a commercial mortgage broker can find a loan that will fit both the property and you as the Buyer.
Obviously, they have a broad selection of loan products for already stabilized property. Read more…