A recent article in the National Real Estate Investor I thought worth sharing. Highlights include:
Read the full story: http://nreionline.com/finance/news/apartments_cmbs_delinquency_record_0908/
Lastly, I am NEVER too busy for your commercial client introduction and I am happy to pay a 25% referral fee. To learn more about:
Continued Success, Pete
Hello, I am a commercial broker trying to get a feel for investor sentiment as it relates to real estate investments… As your time permits, please take a moment to comment on the following questions. Thank you in advance for your time and responses.
Please add any other considerations you feel important and watch for a webinar discussion to discuss my findings. Thank you again for your time.
Lastly, I am NEVER too busy for your Commercial client introduction and I am happy to pay a 25% referral fee. To learn more about:
Continued Success,
Pete
CA Broker #01163793
My business partner, Luis Garcia shared some interesting notes from the San Jose Apartment Brokers meeting today. Luis writes: According to the more senior brokers, Buyers are very hesitant to step in, unless they’re getting a very good deal. Sellers are selling, BUT only if they have to sell. Very little activity is taking place. There is NOT a lot of REO properties on the market right now. Joshua Howard, Executive Director for CAA- Tri County spoke at the meeting. These are the trends that Josh sees developing: 1) More taxes and fees coming our way. In Santa Clara County there are 21 measures on the ballot. Thirteen are for more taxes. State and county will become more creative on how to tax public and business owners. 2) Less people buying homes and more people renting. People are starting to realize that it’s more expensive to own, rather than rent. Tax benefits will not be enough to outweigh cost of owning. 3) Supply of apartments will become a problem in the near future. There’s not enough development taking place of multi-family property in the Bay Area. 4) As Bay Area starts to see more renters, we will start seeing more rent control and more regulations that further protect renters. It seems there is a lot of correction going on in the market place and it is correcting very slowly. If you or someone you know is in need of unbiased commercial real estate consulting OR if there is a consideration to learn more about group investments in commercial real estate outside of California, please contact me. I can be reached via email at Pete@CommercialMasterMinds.com or just call (925) 719-3569 To learn more about my background, visit Consult Pete. To learn more about my company services, visit Commercial MasterMinds. Continued Success, Pete
The Investor’s Marketing Forum (IMF) met this past Tuesday in Orinda. Our moderator Dave Carney facilitated an engaging conversation about the financial state of the commercial real estate economy. Jeff Shaddy of Pacific Capital spoke to share insights as to the amount of debt coming due in the next several years. Commercial Real Estate loans will need to be refinanced because most if not all commercial loans are amortized over 25 or 30 years BUT, the term is usually no longer than 10 years. That means a balloon payment at the end of the term. Shorter terms usually provide lower interest rates and so at the time of acquisition, lower rates were more attractive to investors. Now those loans are coming due and with the extinction of the commercial mortgage backed securities (CMBS) market there is literally no place to refinance! Jeff indicated that 2010 will have more loans coming due than 2009. In fact, each year going forward will have more commercial debt coming due than the previous year until we peak in 2014.
What are lenders doing if there is no vehicle to refinance? The phrase ”Kick the can down the road” and “Extend and pretend” is becoming the short term solution for banks.
In a recent article from CNN Money.com a similar message was conveyed. As for property vacancies, the article “The commercial real estate dilemma” by David Ellis predicts that property vacancies will continue to rise in 2010 and that property values could approximate half their value from the 2007 peak. Click to read the full article.
Now more than ever it is critical to have expert analysis of your property valuation. If you are considering acquisitions, help yourself and your family’s financial well being by seeking the advice of a professional. Should you be holding out for “your price” on a commercial real estate asset, be certain your holding expenses do not exceed returns on new opportunities. In our IMF meeting, it was discussed that in our lifetime we will not see such a dramatic correction in property values.
If you or someone you know is looking to sell or buy apartments or commercial real estate or just one commercial property OR if there is a consideration to learn more about group investments in commercial real estate please contact me. I can be reached via email at Pete@CommercialMasterMinds.com or just call (925) 719-3569
Lastly, I am NEVER too busy for your Commercial referral and I am happy to pay a 25% referral fee. To learn more about my background, visit Consult Pete. To learn more about my company services, visit Commercial MasterMinds.
Continued Success, Pete
A recent article in National Real Estate Investor described the rate of bank failures at an alarming pace. In fact the research firm Foresight Analytics reports that loan defaults are at an all time 18 year high.
As was recently echoed by Brian Pretti of Mechanics Bank, the worst part is that these loan defaults restrict the banks from doing their business, that is make new loans. Banks are reluctant to accept write offs, even though the default rate is steadily climbing.
The folks at Foresight Analytics predict that defaults will peak in 2011 with a slow return to fundamental lending. Unfortunately, the banks are so overwhelmed with defaulting loans, there are few resources to establish new loans. Read the full story.
If you or someone you know is looking to sell or buy apartments or commercial real estate or just one commercial property OR if there is a consideration to learn more about group investments in commercial real estate please contact me. I can be reached via email at Pete@CommercialMasterMinds.com or just call (925) 719-3569
Lastly, I am NEVER too busy for your Commercial referral and I am happy to pay a 25% referral fee. To learn more about my background, visit Consult Pete. To learn more about my company services, visit Commercial MasterMinds.
Continued Success, Pete
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
