Category Borrowers

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Interesting: Goldman Sachs Funds to The Rescue of Some Real Estate Owners..

Ten days ago, 5/21/20, the Real Deal, New York Real Estate News, reported that Goldman Sachs closed a $2.75 billion fund to target the secondary market.  This article will be more of a quick breakdown about the Funds in question, as opposed to what and how I typically convey critical information to sponsors, borrowers, occupiers and small business owners who follow my blog.

The fund name is Vintage Real Estate Partners II. The fund exceeded Goldman’s Sachs target by $1.50 billion. The retail and hotel sector have been impacted mostly due to Covid-19 and many of these owners with retail tenant have been lagging behind to meet debt service requirements.

Many conventional and non-traditional banks are holding off making new loans in this environment, unless for repeat clients, as su...

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Reality & Uncertainty: Positive Vibes and Short Market Insights Amidst Covid-19 Pandemic!

Over the past 3 months, the feeling around the globe has been sort of doom and gloom. Wuhan-400 also known as Corona Virus Disease of 2019 (Covid-19) is surreal and has affected many lives and industries globally. The name itself was given by the World Health Organization (WHO) on February 11th 2020 in relation to Severe Acute Respiratory Syndrome (SARs-Cov-2) – meaning this is not the first coronavirus that has surfaced, although it is a specific virus. As of this writing, according to Worldometer the number of cases worldwide is 3,308,231, deaths toll 234,105, and recovered 1,042,608 Covid-19. With all the statistics floating around, it is important to recognize that this pandemic lifespan will not last forever...

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Quick: Short Message to Borrowers Amid Covid-19 Pandemic

New York City and many other cities in the U.S are on lock down because the numbers of casualties are growing exponentially. As of this writing, according to New York Department of Health, the U.S has confirmed 392,285 cases, 12,627 death, and 21,368 recovered. Our lives and businesses are about to change in a significant way. This is a new great depression that will reorganize the global economy in ways that are impossible to predict, currently. China’s locked down created a downfall in the financial markets, especially on the supply chain front. In order to keep the economy afloat, the Federal Reserve has injected $2 trillion into the economy and also slashed interest rate to zero. Currently, the 10-year treasury rate Is 0.726% and prime rate is at 3.25%.

We’re looking at i...

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Quick Insights: Commercial Real Estate Investment and Finance Outlook 2020

Commercial real estate as an alternative investment is unlike any other due to its level of complexities, the players that are involved in many sectors and the overall economy.  Instead of regurgitating the 2020 real estate market outlook report that Coldwell Banker Richard Ellis (CBRE) recently published, this piece will simply highlight some key economic figures, summary of some of the main points of the CBRE report, and a few points in the capital markets space that are critical for borrowers and lenders alike.

Source: Millionacres A Motley Fool Company

Although many pundits have given the economy a low grade the past couple of years...

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Facts: Some Small Business Owners Should Consider A Line of Credit in Case of a Recession.

Recently Bank of America (BOA) conducted a survey that small business owners should prepare for a recession.  The behemoth institution claimed that, “More than 2/3rd of business owners have taken steps for an economic downturn.” Forecasting is extremely important for financial markets and no one can truly predict what Mr. Market is going to do. Of course, finance pundits, companies or banks that have been in existence for more than a quarter of century can be a slight exception – why? Historically, having survived other economic downturn and recessions, these companies that lived thru the darkness of it and survived financially can be a resource for future outcomes. The key word here is “resource” not “certainty...

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Temporarily: 35 Days to Reopen and How the Big Four Agencies Are Coping!

There are sectors and field of endeavors where politics and government play a major role but not as significant as some others. For real estate, on both the residential and commercial side, not only the markets, and overall economy play a huge role, government and the political mainstream have a significant impact on metrics, performance, results and livelihood.  This short article will briefly cover some of the short-term impacts and what to look forward to about four government agencies in the real estate sector.

A couple of weeks ago, January the 13th 2019, I alluded in a twitter post, www.twitter.com/refivest, that the government shutdown was poised to lure its tail longer if the major parties involved in making decisions could not come to a solvable compromising agreement...

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Panicking or Relaxing: Volatility in The Markets Lately!

          Source: iExpats Investing

Source: iExpats Investing

While the country was celebrating Halloween in many U.S states, and some other countries, the economy should be center stage for all the major markets, especially with all the political and geopolitical events that have captured the attention of investors, owners, small businesses and borrowers alike since the beginning of 2018. This short piece is not about the desolation of the economy or political sensationalism, it is merely to accentuate on a couple of quick pointers about whether investors should put on their panic or relax hat on.

The post mid-term election on November 6th, 2018 will certainly impact some aspects of real estate, more specifically on the tax front, the lower and middle-class housing sector in tertiary and quaternary markets...

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…Three Conversational Points That Have Banks and Lenders Fighting Over Borrowers…

 Source: Bristol Mortgage It is not unanimity anymore about what the Federal Funds Rate experts have in store. In 2016 the conversation between many economists and other pundits was mainly about when a hike in rate was going to take place, and in the last quarter it inevitably happened. In an article on my blog titled, “The Most Important Commercial Real Estate Trends in Review 2016 and Expectation for 2017” there is a section about why rates will continue to rise in 2017. Not only rates rose at the end of fiscal year 2017 by 25 basis point than previous year, but the rise also continued to in 2018. In fact, many Fed officials advised that rates will rise to a range of 2.25 to 2.5 percent by the end of fiscal year 2018...

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Part 1: Seven Crucial Steps Use by Lenders for Sound Credit Analysis to Provide Funding

 Source: PaydayLoanCredit

Source: PaydayLoanCredit

There are many moving parts in the process of obtaining a loan from inception, through application until the loan is closed. The focus of underwriting, credit analysis and risks management have become the cornerstone of the process. Banks and lenders are not only in a business of providing loans and other financial services, but also mitigating and managing risks with any associated assets, entity, sponsor or firm they plan to fund. This is why many ratios are used when performing credit analysis to determine if a borrower and the company can be funded and how much loan proceed will be disbursed. This short post is to quickly explain 3 of the 7 crucial steps banks and lenders use for sound credit analysis to fund business deals.

Step 1: Story About the Business a...

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Question: What Are Three Reasons Borrowers Get Turn Down by Lenders and How to Change the Outcome?

 Crowdfund Insider

Crowdfund Insider

Many borrowers have this belief that, “Lenders and Banks don’t like me because there are too may red tapes involve when it comes to financing my property.” That could not be further from the truth. In fact, lenders and banks love to work with borrowers. The expectation for a lender to fund an asset is always high because financing your property means it is a win for the bank, whether the loan is kept on their balance sheet or securitized. In fact, lenders are always salivating about the “right borrower”. When this happens, it is a marriage made in heaven. There is an article I wrote a few months ago about “default” being the kryptonite of lending and how borrowers should be aware – find it in the post categories because it is a great read...

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