Let’s jump back in to our discussion with Isaac Grant about commercial loans and what’s popular nowadays.
Bob Nelson, Eugene real estate investment broker
Isaac Grant, Eugene commercial loan officer
Bob Nelson: Joining me today is Isaac Grant. Isaac is my favorite commercial loan officer for making loans on income producing properties, pretty much state of Oregon or potentially other states, as long as it’s an Oregon resident. Isaac, thanks for joining … I should say, you’re with Oregon Community Credit Union. Thanks for joining me today Isaac.
Isaac Grant: Hey, pleasure to be here, Bob.
Bob Nelson: Let’s get into the topic that we dealt with yesterday and we have to kind of assume that not everybody is listening today, was on yesterday and so forth. But there are various food groups as I refer to them in commercial real estate. There’s the residential, there’s office, there’s retail, there’s industrial. And of those generic sections of real estate that an investor could buy and own, what seems to be the most popular, which would also most likely be the lowest risk from your standpoint in making a lot?
Isaac Grant: Well, the simplest answer Bob is the ones that are still making income.
Bob Nelson: That’s a good point.
Isaac Grant: So that’s what we’ve honed in on is to not completely segregate certain property types, just because maybe as an industry they’re having difficulties. So for a perfect example, we’ve actually recently done a retail property type loan. But what we did throughout the process was continually get updates that rents were being paid as agreed. So we were getting updated rent rolls, and we were also getting updated proof that that income was still there.
It’s a great way to be able to still offer these low interest rates that we have in the market right now for commercial investment properties. But also take a look at the big picture to see that we want a strong local economy. And so that means that we need to be able to keep lending on all the property types, so long as they meet the qualifying criteria and that their properties are still producing income.
Bob Nelson: But as I recall back to my earlier years in college, the number one priority of every entity, every living entity, et cetera, is survival. And if you make a loan that goes bad, you don’t survive, if you make a whole bunch of those, you don’t survive at all. So you’re looking at it the same way that I look at it. Lowest risk, highest return is my target at the moment. Will you join me again tomorrow?
Isaac Grant: Yes sir.
Bob Nelson: Outstanding.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.