Greetings from Cedar Crest, New Mexico….

First of all thanks for all the emails and kind support for this blog.  Feel free to comment at the end of each blog and share your thoughts. I will post your comments whether you disagree or agree with anything I write….

Is the housing crisis impacting commercial real estate?

I have been getting a good amount of market information and I am sharing some worth-while reads via links below.  Personally…I felt we would not see the housing market crisis leak into the commercial market until spring or summer….but I am seeing early signs of trouble in the commercial side of real estate.  Actually…I am experience some of these "signs" myself.

Last month, my lender, Brandon Haddon of Omni Credit, told me that money was tightening up for commercial.  Even a major national bank froze all commercial lending until second quarter of next year for new purchases (hint).  Then last week a couple of solid commercial deals crossed my desk where the owners needed to sell fast because financial troubles with residential development deals gone bad (hint, hint).

Right now we are seeing a domino effect in an indirect and stealth way.  Investors that are having financial woes with residential projects are  dumping commercial properties to  stay above water.  With banks tightening up…this makes the situation very difficult for both buyer and sellers….unless the investor is liquid and/or has access to private money. 

Opportunities are coming and a few opportunities are already here……so if you have been taking my advice and getting liquid, and most importantly, building wealth lifelines…..you will have access to some great deals.

The good news for investors is….the fed cut rates again….you may be seeing fixed loans at or below 6% while short term, indexed based loans moving higher.  So….if you can find the money….the terms are great right now for solid "performing" properties.

latest news….

1) TROUBLE IN TEXAS: Huge Multifamily Owner Nears Collapse

2) Is any property sector truly recession-proof? 

3) Possible 2008 Democratic Sweep Scares Some Owners

Thanks to Matt Pitcher from the Live Oak Group for some of these articles.  You can find out more about Live Oak Capital Group @ liveoakcapitalgroup.com

Until next time…..rob

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