Dear Investors:
Hey CoPilot*, I’m writing an intro letter to our investors for the quarterly report. Help me make sense of current economy and banking world, including the geopolitical landscape as well.
CoPilot Response: Good luck with that!
Maybe AI isn’t all it’s cracked up to be. We recently launched our latest LLC offering. From the time of our first loan to the third and final loan, the 5-year UST chart is as follows (the gaps represent federal holiday):
The rates have a range of 3.84% at the low to 4.37 (a recent) high. Needless to say, we wish we had financed all our deals back in mid-April. Inflation remains high and jobs look strong, pushing rates higher. The price of oil seems to fluctuate daily and you see rates moving as well. Interest rates are a big component of our model, but more importantly is the quality of the building, the tenant, and the price we pay for new properties. Buy them right and we’ll be fine.
The pipeline slowed in the spring and early summer, but seems to be picking up. We hope to have another LLC by the end of the year. Let’s just hope rates look like mid-April and not mid-July.
Have a great rest of your summer!
*CoPilot is the AI tool we use at Agracel and has been a great help. The answer above is fictious and proof that accountants have a sense of humor.
Best Regards,
Brad Koenig
CFO