Commercial Real Estate – What’s to Come?
ByHey....thanks for coming back! We sure do appreciate it. A repeat reader is a compliment....for sure! Please make sure you subscribe!
Greetings from Cedar Crest, NM. It has been a long time since I have blogged on WealthLifelines.com but it is good to be back. There are several reasons for my hiatus…travel….health….etc….But I have been working diligently on a new and improved blog but it is not ready to be released. I am partnering up with other bloggers to bring collaborative insight into today’s commercial real estate investing market. Until then, I will be updating this blog with news and information….and a story or two.
700 Billion $ tragedy?
These last several months have been difficult for many of us with regards to the economy and real estate (an understatment). The problem is it is not going to get better any time soon. I am not in favor of this 700 Billion dollar bailout that is up for senate vote for several reasons, but it does not matter what I am or I am not in favor of…..the results will be devastating….and…at the same time….opportunistic.
What is to come…
Just recently, I refinanced one of my shopping centers. I faced hurdles that I had not experienced before. You can read more about my refinance nightmare HERE. From what I understand, I am lucky I refinanced when I did. Lenders, especially for commercial retail, have much tighter parameters now. The hassel of financing a retail center has gone up exponential since my personal experience. The “word on the street” is that it will get worse. The prediction is conventional lending will dry up over the next 24 months, private money will kick in…but with terms that will make you cry. So how does this all play into opportunity?
Opportunities?
The opportunities lie in the problems. Many investors have mortgages with balloons coming into play….that means investors will need to refinance. With values plummiting and credit tightening, investor will be unable to refinance…and may be pushed to sell…at higher cap rates. This is where the opportunity is. Now the question is….where does one get the money to take advantage of the coming opportunities? Good questions and one I will get to next time….
Until next time…….rob
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1 Comments
October 5th, 2008 at 10:11 pm
I agree. It will not be easy in the next couple of years. Finding money will be very difficult. Like the blog!
Sean Murphy, Rofo – Oakland Office Space