nana1

Commercial Real Estate: Is the Other Shoe About to Drop?

You are wrong about underwriting standard of commercial loans. I am mortgage broker-commercial loan.
Most people or these TV speaker and writers know nothing about commercial loans.
Commercial Loans underwriting is different than residential.
Lender does not care so much what is the value of property as long as net rental income ( this is Groos income100% - 40% expenses including vacancies = 60% -net rental income) will pay for mortgage payment ( principle and interest) in the ratio 1.25-1.45, depending on property. Other words net rental income must be higher at least 25% or more to pay for monthly mortgage payment.
If you do not know how to underwrite commercial mortgage , please close you mouth and go to school to learn.
Idiots are present and there could be some private or private company that will fail . Most our public corporations in Real Estate survived and they are healty.
Please go to school and learn basic algebra and %.