There have been a few of these news stories floating around lately…this one seemed quite informative. – Tim –
The Federal Reserve Board on Friday announced that, starting in June, commercial mortgage-backed securities (CMBS) and securities backed by insurance premiums finance loans will be eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF).
The CMBS market came to a standstill in mid-2008. The inclusion of CMBS as eligible collateral for TALF loans will help prevent defaults on economically Read more of this article »
Everyone has been conditioned to actually believe there are tons of deals to be had out there for nothing…It seems like everyone has a story about a brother-in-law, cousin, best friend’s ex-roomate, and upstairs neighbor that has purchased, and “flipped”(how much does everyone hate that term now…haha) some real estate with zero money. They love to tell about the house they bought on a 100% mortgage, remodeled on a 0% credit line at the local home improvement warehouse, and sold for a $20k rip.
Well, at the base of everyone one of these stories is a kernel of truth, and if the base truth is 50% as good as the final story then it is reasonable to believe that some of these people actually did make some money on real estate investments with very little of their own hard cash. Read more of this article »
One thing for sure – CoStar is good for reports like this – Tim
Falling Prices Hindering Already-Difficult Ability To Refinance Loans on Time
An uptick in both the number and average loan size of new defaults resulted in a one-quarter point climb in March CMBS delinquencies to end the month at 1.53%, and there are significant indicators that point to record climb in defaults in April as well, according to Fitch Ratings.
So you own a television and a computer – and every time you turn one or both of them on, they instantly spew forth ideas that you should sit tight and keep leasing space for your business. Vacancy rates are on the rise, rents are dropping, banks are foreclosing on properties, distress sales are on the rise still, etc, etc. Well maybe your computer doesn’t “spew” this info – but your fax machine probably does.
The basic point is in order to by in business, you have to have space to conduct that business. Like it or not, you unless you are drop shipping infant toys you sell on ebay, you most likely need a traditional space to operate your business. This could be an office, a retail store, or a manufacturing or industrial space for your going concern. Rent is expensive, possibly the most expensive piece of your overhead after labor and of course the cost of goods sold. While there are no guarantees and I certainly have no crystal ball here in my office, There is a good chance of you being able to recapture Read more of this article »
As we all know, unlike residential mortgages, commercial paper is ammortized over a longer period of 20-30 years, but they have terms or balloon payment dates. Most popular commercial loans are for 5 year terms. If you calculate backwards and figure when the commercial market was at its peak, from mid-2006 to mid-2007, those notes will be coming due in 2010-2011.
It is foreseeable that the financing in place on that commercial property will be difficult to renew, Read more of this article »
Finally, after much to-do the liquidation of the Crane Cams property in underway – just two hours ago the intellectual property rights were sold at auction for $1.2 million. Read more of this article »
General Contractor of Industrial Pre-Engineered Buildings
“Surviving the current economy – An Analysis of bank lending practices of 1979-1983 “
Investment Alert!Warning bells were going off and a sense of déjà vu when I received my second phone call from a commercial real estate investor having problems renewing his commercial loan. Read more of this article »
Someone asked me today if I thought this was the bottom of the market. The tone in which he asked me reminded me of a story from my youth:
Once a regular customer of my father’s building supply store posed him the question, “Hey, what can you sell me here real cheap that I could take to the flea market on the weekend to sell and make some money on?” Read more of this article »
By Tim Davis
The prolonged slump in the commercial real estate market is leading to some fantastic deals to be had on existing buildings with extended periods of vacancy. Several examples of buildings in the area that are now being offered at radically reduced base rents… Read more of this article »
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Everyone has been conditioned to actually believe there are tons of deals to be had out there for nothing…It seems like everyone has a story about a brother-in-law, cousin, best friend’s ex-roomate, and upstairs neighbor that has purchased, and “flipped”(how much does everyone hate that term now…haha) some real estate with zero money. They love to tell about the house they bought on a 100% mortgage, remodeled on a 0% credit line at the local home improvement warehouse, and sold for a $20k rip.
by Tim Davis
