"CARA" REAL ESTATE UNIVERSITY

At CARA UNIVERSITY we attempt to provide informative, educational, and “refresher” materials  that can be helpful  to not only the  “novice” but also to the skilled Industrial and Commercial Real Estate Professional

The Federal Reserve Bank "Watch"

The Following FRED Charts show the trajectories of economic recessions & recoveries

Why We Think You Should Be Aware of the Importance of The Federal Reserve’s “SLOOS REPORT.” 

One of the most critical but often overlooked reports The Federal Reserve Bank intermittently prepares throughout the year is the Senior Loan Officer Opinion Survey “SLOOS” (see below to download). The Federal Reserve routinely conducts assessments involving as many as 100 major U.S. banks and 24 American offices of international financial institutions. These evaluations are usually conducted four times a year to coincide with the Federal Open Market Committee meetings that occur in January, April, August, and October. Additional assessments may also be conducted twice annually, as needed. The queries in the survey focus on shifts in lending criteria and conditions as well as the current level of loan demand from businesses and consumers. Occasionally, the survey may also touch upon a few other relevant issues.

Due to the Fed’s recent “credit tightening policies” starting in March 2022, financing availability and costs, have become more restrictive for businesses and consumers. Cost will probably remain high in the coming months. As interest rates rise and lenders tighten credit standards, financing for significant purchases of any type and operating expenses could become more complex to control. 

Click Here to Download the Fed’s latest SLOOS Report (January 2024). We will also provide “updates” to this critical report as soon as FRED (Federal Reserve) releases them. 

Protect Your Business from Tightening Credit with Sale-Leaseback Financing

A Solution For Refinancing & Liquidity: Sale-Leasebacks

Don’t Forget the Following About Sale-leasebacks: 

Sale-leaseback financing can provide an alternative solution for business owners looking to access capital while credit conditions tighten or remain high. 

What is a Sale-Leaseback? 

A sale-leaseback is a transaction where a business sells an asset, often real estate, to an investor and then leases it back to continue using it. The company receives a lump-sum payment from the sale that can be used for any purpose while also being able to keep operating from the property through the lease agreement. 

Benefits of a Sale-leaseback transaction in a “Tight Credit” environment: 

  • Access capital without needing to qualify for additional financing. 
  • Monetize existing assets to generate funds. 
  • Lock in favorable lease terms for continued low-cost use of the businesses in its current facility.  
  • Avoid relying on banks or lenders and delays for funding. 

Sale-leasebacks allow businesses to tap into their capital reserves through owned real estate when financing options are scarce. This alternative funding can be vital for managing downturns and periods of uncertainty. 

Contact us today to learn how a sale-leaseback can help “Recession-Proof” your business. 

Investors interested in diversifying their portfolios with Industrial Real Estate investments, including the option of sale-leaseback transactions, are encouraged to reach out to us. We provide curated opportunities tailored to your specific investment goals and objectives.  

Let us guide you through the process and connect you with premium properties and deals in this thriving sector. 

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