nana1

Housing Data Shows Downturn Could Be Prolonged

Because some manipulators - criminals and idiots want to gain, short sellers or people who want to buy at lower price. They know nothing about commercial lending, they are stupid like banks that went bankrupt including Washington Mutual and others. I am doing commercial lending as a mortgage broker and formula to get commercial loan is such that Gross Income = 100% minus all expenses =40% equals net income = 60%. This net income from rental properties should cover full mortgage payment in the ratio 1.20 to 1. For example if mortgage payment are $2.000.00 a month than net income from rental property should be $2400.00 o r more. Other words rental property income should pay for mortgage payment. In calculating net income vacancies are taken into consideration. Bank will not give any commercial loan if net income will not pay for mortgage.I do not understand why investors dump these commercial stocks that are paying good dividends. Most USA large commercial - public corporations are in good shape, they always paid dividends. There are always some companies that have bad management or fraudulent management and this is the reason the company can fail. Please diversify your portfolio, the best is IYR- long term, it will alway survive because bad companies are removed from index.

On Nov 04 08:42 AM SellXHB! wrote:

> I agree with this article, however, I am not sure why IYR is referenced
> as a related stock. IYR covers commercial real estate, not residential.