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CHICAGO-Momentum is a new word, one not used in the past seven-to-eight quarters, when discussing distressed real estate in the United States.
According to Navigant, resolution activity during the third quarter averaged $2.6 billion each month, more than double the level of restructuring activity. Momentum signals showed through each month. In September alone, for example, the volume of distressed loans being restructured and resolved, about $4 billion, almost fully offset about $4.3 billion of new additions to distress.Read more
This week, the Federal Deposit Insurance Corp. closed sales of 40% equity interest in three limited liability companies it set up to hold commercial and residential assets of 26 failed banks.
Combined, the FDIC sold $620 million in unpaid principal on these portfolios for roughly $198 million, less than one-third of what the loans are worth.
Two of the sales went to California-based investment firm Colony Capital and the New York-based private equity company The Cogsville Group, to purchase a portfolio of 198 distressed commercial real estate loans from five failed banks. More than 38% of them are nonperforming. The two companies paid 60.1% of the roughly $137 million in unpaid principal balance on the loans.
Apartment Finance Today. Market Movers
How the emergence of Generation Y, the aging of baby boomers, and immigration trends will impact the multifamily industry in the next decade.
Read more here
Money Wise Blog:
Do It yourself Commercial Loan Workouts
Commercial Debt Restructuring or Commercial Loan Workout, sometimes can consist of a singular adjustment (modification) of commercial loan terms, which is usually referred to as: Commercial Loan Modification(s)
However, more often, Commercial Loan Workout is a precise combination of two, three or more, permanent and/or temporary loan modifications performed concurrently.
Money Wise Blog:
Multifamily Commercial Real Estate: Creating a turnaround management plan & obtaining a loan workout.
Commercial Real Estate nowadays is like the Pacific Ocean, when Magellan was sailing it and gave it absolutely opposite to its real character name, it looks calm, but underneath the relatively calm surface a great calamity and instability unveils.
Yes, the Moody's Commercial Real Estate Indices increased 4.3 % in September, but the summer reports showed 3%-4% monthly decline.
Yes, multifamily property type showed increase of 0.4% in prices during the last quarter (Q3, 2010), but how much did the prices decline since the Q3 2007? Read more