multifamily investing: 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 investing: We need your help! - 01/09/09 12:41 PM
Each of us who earns an income (and even those of us who don't) in the real estate market should pay attention to forth coming legislation that helps and encourages the buying and selling of real estate related securities.
Currently there is legislation raising the amount of an SBA guarantee to 80% on all current, future or existing first lien mortgage loans until September of 2010.
This will free up capacity and capital for banks who have risked lending to business owners recently as well as encourage other banks to participate.
All of us in the Active Rain community … (1 comments)
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multifamily investing: 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 investing: 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 investing: 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 investing: 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 investing: 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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multifamily investing: FREE 2009 Multifamily Credit Crunch Guide - 10/09/08 10:00 PM
The 2009 Multifamily Investment Crunch Guide
Link is now available. It has been edited from our normal underwriting guidelines to provide a better understanding how the current financing crunch is impacting multifamily transactions. It’s designed for investors who need some current information. It should also give agents some idea of structuring a sale or financing for most multifamily investments.
A large number of banks have simply stopped lending. The remaining banks are cherry pickin deals because they can.
The current credit crunch does need some “esplaining”. I’d use the word “explaining” but in this case the credit crisis … (2 comments)
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multifamily investing: Multifamily fight over Wachovia - 10/06/08 09:50 PM
The multifamily investment market is watching Wachovia, Wells Fargo, Citigroup slug it out.
The demise of Wachovia Corp has the claws out in a cat fight over the sale. Citigroup thought they had a steal, make that a DEAL in acquiring the bank.
Encourage by the Feds, Citigroup made the deal to acquire Wachovia’s banking assets for $2.16B and takeover much of Wachovia’s debt. Wachovia shareholders were apparently the victim of a misunderstanding. Much like the mortgage paperwork many borrowers signed, they must have missed the part of only $2.16B.
Wachovia was approached by Wells Fargo who offered $15B and they … (2 comments)
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multifamily investing: MBA reports Multifamily investments performing well - 10/02/08 12:14 PM
Well darn......a little good news for my multifamily investment market again. I'll take any good news for now.
The Mortgage Bankers Association (MBA) confirmed the multifamily investment market is still performing well for both investors and lenders.
Although we have seen a small rise in multifamily delinquency rates in the second Q this year, last year was a record low in comparison for investors. The rise was less than expected though.
Our financial resources of CMBS, Fannie Mae, Freddie Mac, Life Insurance and commercial banks all reported lower than expected delinquencies given the environment. All together this financial group holds … (2 comments)
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multifamily investing: If I was President - 10/01/08 05:20 PM
I’m rethinking the decision to let Lehman Brothers fail now. Really didn’t consider what that has done to the short term bond market investors who fund major corporate debt. Didn’t pay enough attention to that and now some really big companies can’t roll their short term debt. My bad.
We have too many accounting loopholes and these off balance sheet investments things. The failing banks seemed to have great balance sheets but they were rigged. Investors have no faith in them now. I hate it when my bank uses funny accounting rules and stuff to make a buck.
Speaking of accounting … (3 comments)
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multifamily investing: When Banks hoard cash....... - 09/30/08 02:22 PM
The Feds are scrambling hard these days to “save the economy”. I think that’s a fair statement to make. When the big, rich and powerful begin to lose money and fear they will lose more it really does illustrate the trickledown economics applied to Main Street. No money trickles down for anyone and my multifamily investment market along with every other market is affected even though the government is pleading with banks to part with their cash.
Actually it took me awhile to realize Main Street was me and you.
The credit market (unfortunately including my beloved Fannie … (6 comments)
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multifamily investing: Multifamily investing and LIBOR. - 09/28/08 10:16 PM
The LIBOR index comes up once in awhile in conversation especially when providing a multifamily investor a rate quote. Multifamily loans and investing include the LIBOR index routinely now.
Years ago, when multi family investments were less common, investors rarely asked how LIBOR worked. Banks rarely used the index when working with bank customers unless they were corporate.
LIBOR officially is the London Interbank Offered Rate created in part by the British Bankers Association and Bank of England going online in 1986.
The index is in simple terms the rate that the 200 international member banks will lend to … (1 comments)
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multifamily investing: The history of a "Resolution Trust Corporation" and bail out - 09/24/08 01:41 PM
You have probably heard of the bailout but how much is known about this RTC entity?
The Resolution Trust Corporation (RTC) was enacted due to the failed thrifts and Savings and Loans debacle which came to a head in 1989.
What many don’t know is the RTC was the brain child of a brilliant management group leading a small bank called North Carolina National Bank (NCNB).
First Republic Bank in Texas was the largest bank in the state. I had the unfortunate pleasure of working for the bank almost 10 years before it became the largest modern day bank failure … (5 comments)
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multifamily investing: Multi family investments standing by: - 09/23/08 06:07 PM
Multifamily investments and lending came to a standstill in the past week as the commercial real estate market tries to understand the impact on future lending and criteria.
The multi family portfolio is impacted simply under the “guilt by association” influence. J. Christopher Hoeffel, president of CMSA (Commercial Mortgage Securities Association) remarked in a conference that the underlying default rate of the CMBS market is only .47%
That’s less than ½ of one percent in case you don’t have your calculator handy. And that is for all property types. Multifamily investment types are even less.
What it all means is multi … (4 comments)
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multifamily investing: Oil speculation leads hike - 09/22/08 05:26 PM
I was blogging awhile back with a reporter with the St Louis newspaper who maintained that the early year hike in oil prices were only due to the economic conditions. My contention that the hike was intentional due to trading manipulation and resulted in the largest consumer fraud in history. I was partly wrong as the bank investment fiasco has exposed even more fraud. Legal fraud.
But I digress.
Yahoo’s article has just a small statement about oil trading today.
Phil Flynn, analyst and oil trader with Alaron Trading Corp. in Chicago, said the late-session surge in oil appeared to be … (3 comments)
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multifamily investing: AIG-Are you kidding me? - 09/18/08 12:10 PM
By now you know the Feds have bailed out AIG. They are one of the largest insurers in the world protecting a wide range of investments and owning a variety of very good assets.
Unfortunately, if you own the biggest diamond in the world today and you have to sell it right now there would be a considerable loss in its market value.
That’s what happened to AIG. Their inability to borrow against its assets or sell them to raise sufficient capital doomed the company. AIG requires the highest credit risk score because it offers default protection insurance on hundreds … (5 comments)
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multifamily investing: Financial history made today. - 09/17/08 02:49 PM
Market investing takes another back seat to the government today. One veteran trader said, "no one on the planet could have anticipated this week". The market continued its historic upheaval today with the government bailout of AIG.
Although the government declared it was not "nationalizing" AIG, it does in fact own 79.9% as well as control dividends. Taxpayers may never know how critical the decision was to stabilize the market.
Call it what you want, but the government stepping in to in effect take control of AIG would have been insane a few months ago.
The takeover of a public company … (4 comments)
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multifamily investing: Multifamily investments and the market...... - 09/16/08 12:27 PM
The multifamily lending industry is crossing their fingers while waiting for the market to stabilize. Multifamily investors across the nation are looking for any positive signs.
Yesterday's market performance along with the financial sectors reporting went down in the record books as one of the worst financial crisis in history.
Never before have we had the entire financial sector failing at the same time. Banks, stocks, insurance companies, investment banks all took it on the chin several times with Lehman Brothers unable to get up. Merrill Lynch staggered to its feet with new owners. AIG, the world's largest insurer, needs mouth … (5 comments)
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multifamily investing: Lehmans up a creek......no wait in the ocean - 09/14/08 10:13 PM
The multifamily investment industry as well as the market was hoping to see something positive happen this weekend that might signal a bottoming of the meltdown.
Unfortunately for Lehman Brothers, there was nothing positive at all. Bank of America who was one of the few remaining companies having the resources to bail the 158 year old firm came to an agreement with Merrill Lynch. Apparently officials at Lehman already were aware of this decision but needed the appearance of a BOA investment to help tread water. “Up a creek without a paddle” doesn’t come close to what LEH is going … (6 comments)
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