Pushing Dirt

Most investors that bought commercial real estate in 2007 and 2008 (along with some that bought in 2006) have seen their property values drop 20 to 30 percent. As such, they’ve seen their entire equity investment in the property wiped out.

if these owners have stable cash flowing property, there is no immediate distress. The pain will come when these loans come due: they will join the ever-growing ranks of commercial borrowers that have loans coming due and are unable to refinance. What remains to be seen is whether lenders will extend the terms of these defaulting loans.

Enjoy this post? Subscribe and get more like it every day. Enter your email address at right.

If you and your business own and occupy a commercial property and need commercial financing, do yourself a favor and look beyond your bank and talk to life insurance companies and conduit lenders.

Higher loan amounts, lower rates, better terms and a structure that includes little to no recourse (ie lender cant seize your personal property) are often available depending on the credit of the occupant.

Hire a good mortgage broker — one who has been referred to you — to handle the process. They will charge you a fee (a point or less) but will earn it back many times over if they are good at what they do.