Archive For The “INSIGHTS” Category

Are Large U.S. Banks About to Collapse Due to CLO Losses

Are Large U.S. Banks About to Collapse Due to CLO Losses

CLO stands for collateralized loan obligations, which are bonds backed by a collection of loans.  You can tell from the title of this article that some of these CLO’s are in trouble; but it is important to note that the troubled CLO’s are NOT the ones backed by bridge loans on commercial real estate.  The…

CRE Collateralized Loan Obligation? What is It?  Why Should You Care?

CRE Collateralized Loan Obligation? What is It? Why Should You Care?

A CLE CLO stands for a commercial real estate Collateralized Loan Obligation, and it is a security that is backed by a pool of commercial loans.  The individual borrowers make their payments to the issuer – the company that made and pooled the loans – and then the issuer makes payments to the investors who invested…

The Operating Expense Ratio And Commercial Loans

The Operating Expense Ratio And Commercial Loans

In negotiating an income property loan, the size of loan the borrower can obtain is usually more of a sticking point than the rate or the loan fee. Since income property loan sizes are generally limited by the debt service coverage ratio (i.e., cash flow), rather than the loan-to-value ratio, the operating expense figure that…

Where Debt Funds Get Their Dough To Make Commercial Bridge Loans

Where Debt Funds Get Their Dough To Make Commercial Bridge Loans

Some more green shoots are visible as the bridge lenders are starting originations also.  The warehouse lending market (big banks lending to debt funds) has started up again, with more cautious leverage.  The warehouse lenders will also monitor loan collateral more closely. The difference between a commercial mortgage banker and a commercial mortgage banker is…

Economics – When There’s Blood in the Streets

Economics – When There’s Blood in the Streets

The time to buy is when there’s blood in the streets. — Baron Rothchild, 1815, Member of the Rothchild banking family. There is an interesting story about this quote. Baron Nathan Rothchild was one of five sons of Mayer Amschel Rothchild.  Mayer was the founder of the famous and incredibly wealthy Rothchold banking family.  They…

How To Get Commercial Loans in This Crisis

How To Get Commercial Loans in This Crisis

Wrap your head around the concept that every business owner in the entire country needs cash right now.  His bank is definitely not going to loan it to him.  Banks today are terrified.  Here is exactly how to find some small commercial real estate loans during this Coronavirus Crisis. I want to emphasis the word, “small”…

Now Is The Time To Contact Banks For Their Commercial Loan Turndowns

Now Is The Time To Contact Banks For Their Commercial Loan Turndowns

Quick funny:  Tomorrow is the National Home-School Tornado Drill.  Lock your kids in the basement until you give the all clear.  You’re welcome.  Haha! For the past two weeks, we have been discussing the fact that just about every commercial bank in the country is out of the commercial mortgage market. The CMBS market remains…

Banks Stop Making Commercial Construction Loans New Construction Is Doomed

Banks Stop Making Commercial Construction Loans New Construction Is Doomed

Are any of you guys savvy stock pickers?  If so, you might want to consider shorting those companies which provide services to the construction industry.  For example, those companies that manufacture, deliver, and/or set up huge construction cranes are likely to face some tough years ahead. Why?  There may be very little new commercial construction…

Nearly Every Commercial Bank In The Country Is Out Of The Commercial Mortgage Market

Nearly Every Commercial Bank In The Country Is Out Of The Commercial Mortgage Market

If you need a commercial real estate loan right now, there are very few remaining commercial lenders from whom to choose. Because of the Coronavirus Crisis, almost every commercial bank in the entire country is out of the commercial mortgage market.  Commercial banks are herd animals, and they are easily frightened.  They are all waiting…

Spotting An Advance Fee Commercial Loan Scammer

Spotting An Advance Fee Commercial Loan Scammer

Every year hundreds of commercial property owners get conned out of millions of dollars by advance fee scammers. An advance fee scammer is a criminal pretending to be a commercial mortgage lender.  He will issue a very fancy-looking conditional commitment letter, which will call for some huge “good faith deposit” or “third-party report fee”.  Once…

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