multifamily: Commercial Real Estate: What's new in 2009? - 01/12/09 02:33 PM
Business owners and real estate agents should receive some glimmer of hope for 2009 sales. What should we see in 2009?
Government backed commercial loans will continue to grow in 2009 as investors and banks seek the safest real estate investments. In the near future, only two sectors of real estate will receive the benefit and guarantee of the government.
SBA financing fell for several years as banks and secondary market loan programs offered a cheaper alternative along with less paperwork. That all changed in 2008.
The biggest change in the SBA program for 2009 should be the current proposal to … (3 comments)
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multifamily: Feds pulled another $800B out of their................ - 11/25/08 04:31 PM
Feds pulled another $800B out of their ………………hat? Taxpayer hat that is.
Actually that’s not even accurate. The Fed is essentially creating the $800B first to purchase debt and then using taxpayer money to weed out the bad loans. The initial plan to purchase bad loans from banks was scrapped but has now been restructured to buy $500B worth of higher quality mortgage securities.
In addition, the Feds will purchase bundles of consumer debt, credit card debt, student loans and car loans in an attempt to free up the seemingly frozen solid credit markets.
Let’s stand back here and take a … (11 comments)
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multifamily: Get your loan from the Federal Reserve Bank? - 11/18/08 05:23 PM
It has become apparent that all the fist shaking and rhetoric going on between the Feds and the banking industry regarding consumer lending is going nowhere.
I wondered just how Congress can mandate a bank to lend money. No matter how you cut it, lending money is a matter of choice for banks. You might dictate the circumstances as congress has done with housing but not the choice.
As long as a bank does not decline a loan due to the protected under the Equal Credit Opportunity Act (among other legislation), you are out of luck. Our banks simply raised the … (0 comments)
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multifamily: Will the Federal Reserve Bank loan money to consumers? - 11/14/08 08:39 AM
A prior post of mine stated the banks were hoarding cash. That was met with a bit of attitude by a couple of folks. Apparently they disagreed with me. The facts are the banks have borrowed far more money from the Feds than they have loaned to consumers or other banks.
The Feds are in a dilemma right now. They have no leverage to force banks to lend. They can’t even stop the “overall compensation” to EXECUTIVES as banks claim they need to pay them to keep these valuable employees.
That’s a bunch of baloney. A whole lot of it actually.
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multifamily: Multifamily investments standing still - 11/10/08 02:27 PM
The multifamily purchase market is almost at a standstill right now. Seems like the entire investment market has taken the rest of the year off.
A multifamily investment lender like an insurance company has basically folded their tents for the year leaving even less choices. We have two insurance companies still willing to make an investment in the sector putting very good loans on their books. I'll say that again. Very good loans.
The general consensus is the multifamily investment market is more than holding it's own in both performance and cash returns. Occupancy is up but collections are as well washing … (2 comments)
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multifamily: Wachovia's $24 Billion dollar mistake - 11/05/08 10:58 PM
It’s hard to feel sorry for someone who makes a $24B mistake. Wachovia’s former chief Ken Thompson was quoted as saying “It’s a dream come true” when the bank came to an agreement to buy Golden West in mid 2006.
Golden West was a well known thrift that had been around for some 20 years in the western markets. The empire was built almost solely on one product known as an “Option ARM” or “Pick a pay”. In fact, 99% of the mortgage portfolio was this one program. But they had branches and deposits that evidently blinded Thompson.
Golden … (4 comments)
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multifamily: Wild ride for 2009 Multifamily Investments - 11/03/08 07:07 PM
Wow, it’s been a wild ride this year so far. Multifamily investments and performance are all over the board depending on which survey you read.
One thing for sure is a real slow down in purchases most likely caused by the presidential election. Multifamily investors reap great benefits utilizing aggressive accounting strategies so any discussion among candidates about a tax increase generally slows down the purchase market.
Surveys have indicated that rents have leveled off for most areas. I think this is fair to say. It’s always more difficult to raise rents in this environment. However, demand may increase as … (2 comments)
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multifamily: The unhappy banker - 10/31/08 03:54 PM
I read a couple of articles that finally made me feel a little better about all the bailout talk and shenanigans going on lately.
If you are a home owner and fall behind in payments, you may be eligible for a new fangled program. If you are a home owner who struggles, makes tough decisions like not going to the doctor but make your house payments on time, you are out of luck.
The banking industry knows full well the next huge issue for them will be credit card losses. These losses cannot be blamed on anything or anyone except … (2 comments)
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multifamily: Is your bank on this list? - 10/30/08 12:00 PM
Among the latest banks to receive approval for government funds are: Capital One - $3.55 billionSunTrust Banks - $3.5 billionRegions Financial Corp. - $3.5 billionFifth Third Bancorp - $3.4 billionBB&T Corp. - $3.1 billionKeyCorp - $2.5 billionComerica Inc. - $2.25 billionNorthern Trust Corp. - $1.5 billionHuntington Bancshares Inc. - $1.4 billionFirst Horizon National Corp. - $866 millionCity National Corp. - $395 millionValley National Bancorp - $330 millionUCBH Holdings Inc. - $298 millionWashington Federal Inc. - $200 millionFirst Niagara Financial Group Inc. - $186 million
Some of the banks are not failing, just propping up capital reserves. A couple intend to use … (8 comments)
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multifamily: Little bank birdie told me..... - 10/28/08 01:55 PM
I noted in a previous post, I’d like to be a fly on the wall in some of the Fed meetings. Well I wasn’t a fly, but I have found a little bank birdie who revealed some very interesting information regarding some of the Fed’s moves.
The birdie was actually a formal bank statement released to stockholders explaining their balance sheet along with insider banking knowledge of the Fannie and Freddie bailout and their bank losses as a result.
I blogged many smaller community banks were left holding the bag on Fannie and Freddie stock. In fact, they were encouraged … (0 comments)
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multifamily: The AMERICAN BAILOUT - 10/26/08 10:36 PM
I use a dozen or so sites to obtain information about the financial sector and in multifamily investments. I started to count the billions and billions of dollars that are being invested here and there and some more way over there.
My calculator just couldn't compute the numbers. You know it's a lot of money when you start counting trillions instead of hundreds of billions.
One analyst stated casually that one company would only require just over a $100 billion. When did we get so casual about $100 billion.
According to my calculator. I have to be honest, the numbers were … (0 comments)
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multifamily: Fed bailout used to buy National City? - 10/25/08 11:25 PM
Is PNC going to use some of the $700 Billion Fed money to buy National City? This may be difficult to prove but the idea is just very unsettling. There may be some good uses for this but using it to purchase another bank is just not what the doctor ordered. Nor was it in the minds of the Treasury or was it?
There have been so many historic moves and most likely moves that have never been made public. Keep an eye on the money trail and your fingers on the key board to protest the newest move by … (2 comments)
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multifamily: Multifamily Investment Rent roll form - 10/21/08 10:39 PM
I received 2 calls this week from mortgage brokers requesting a blank copy of a multifamily rent roll. On our web site at www.themultifamilyexperts.com, you will find free forms to use.
The page is located at:
http://www.themultifamilyexperts.com/Resources
Rent roll forms should be complete and accurate. Multifamily investors should always have the historical rent roll occupancy handy. Rents should have a stabilized occupancy for at least 90 days but 6 months is preferred.
The New 2009 Multifamily Credit Crunch Guide is on line now with the most up to date real estate investment guide available. If you own income producing property, this … (0 comments)
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multifamily: The $58 Billion dollar elephant we own - 10/20/08 12:23 PM
The numbers surrounding "credit derivatives" are staggering. So much so, I just had to research this beast to find out what they are exactly. Where did they come from and who can I hang?
The link will take you to an excellent article "The $58 Trillion Dollar Elephant in the room" written by Jesse Eisinger. it probably explains this beast better than the 100 or so articles I have researched. Jesse deserves great credit for making this simple enough that I could understand it.
http://www.portfolio.com/views/columns/wall-street/2008/10/15/Credit-Derivatives-Role-in-Crash#page1
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multifamily: 2008 Multifamily investors profit & loss survey - 10/18/08 01:17 PM
The National Apartment Association just published their 2008 Survey of Income and Expenses for multifamily investors. Hint.........click on the guide :)
This guide is useful whether you are a Multifamily Investor or just own rental property. Listing or selling agents may be interested in getting a peek at rental rates, income and expenses in this current environment.
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multifamily: Credit crunch impacts Alabama - 10/17/08 06:25 PM
The credit crunch has hit a sector that until now hasn’t really been out there in the media’s eye. Many Small Business folks and consumers have been crushed by the credit freeze. Larger companies struggle with investors in the short term commercial paper market too scared to invest in them.
Who else could be at risk?
Well it turns out; it’s someone very close to home. And folks should pay attention to it. It turns out to be Birmingham Alabama.
Many people remember when New York City almost went broke because of mismanagement. This one is different. Sure there … (0 comments)
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multifamily: So you want to borrow from the bank? - 10/16/08 05:38 PM
Here’s the low down on the current financial crisis.
Effectively, the entire consumer and business lending market is now in the hands of the banking industry. No more investment banks or investor funds looking for higher yields (thanks to the Lehman Brothers failure).
Our latest survey of lenders and banks indicated that all are as busy as they want to be. The majority are cutting back personnel at the very moment that our economy needs them most.
Treasury Secretary Paulson called the 9 largest banks to the table because they hold 50% of the nations bank deposits. He needed them to … (3 comments)
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multifamily: When Banks hoard cash: Part 2 - 10/15/08 01:45 PM
When Banks hoard cash: Part 1
http://activerain.com/blogsview/716392/When-Banks-hoard-cash
The historic meeting of the 9 banking CEO’s came with a surprise for most of them. Taking a page from the Godfather, each of them was offered a deal they couldn’t refuse.
They were handed a one page document requesting their signature and agreement to sell bank shares to the government. It only took 3 ½ hours to convince all to sign.
Several CEO’s were not receptive to it but most were ready to sell for the capital injection (TAXPAYER MONEY) of $250 Billion. I’d like to have been a fly … (5 comments)
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multifamily: Wow! More historic Fed moves... - 10/14/08 12:27 PM
The Feds made yet another historic move in gathering the largest bank CEO’s to a meeting in Washington. The meeting was to go over details of the latest government move.
The Feds will purchase preferred stock in the nine largest banks and expand from there. Several of the banks were Citigroup, Inc., Wells Fargo & Co., JPMorgan Chase & Co., Bank of America as well as Morgan Stanley.
Not included in the statement was Goldman Sachs but I’d bet $1 that they will receive some of the initial money as well. Due to Treasury Secretary Paulson’s history with them and working … (1 comments)
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multifamily: Fox vs. Jim Cramer - 10/13/08 02:33 PM
I watch a variety of shows including MSNBC, FOX and CNN. On each network, some of the talent I like, some I don’t.
In the fall last year, I was surprised to see Wall Street virtually ignoring the financial meltdown that had reared its ugly head. Gas was going up and the financial sector going down generally doesn’t bode well for business or consumers.
But the talking heads on most shows were peddling stocks and the stock market providing forecasts that to me were crazy. Home sales were going down and lenders were closing their doors. How could that not … (3 comments)
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