Archive for January, 2009

Walker & Dunlop, Green Park Financial & Column Merge, Form Multi-Family Lending Giant

January 30, 2009

Walker & Dunlop Inc. and their partner Green Park Financial LP will merge with Column Guaranteed LLC this weekend to form a huge national apartment lender. The new firm will operate under the Walker & Dunlop name and is expected to originate more than $3B in commercial mortgage loans a year.

 

Column is a small subsidiary of Swiss banking powerhouse Credit Suisse and is a major producer and loan servicing agent of Freddie Mac and The Department of Housing and Urban Development (HUD). Green Park is one of the largest commercial mortgage loan originators in the nation for Fannie Mae.

 

The new Walker & Dunlop will be headed up by CEO William Walker with Mallory Walker a member of the Board of Directors. The company will be run out of Bethesda MD but will have branch office presence in NY, CA, LA, TX and GA as-well-as a satellite office in Baltimore.

 

Readers of this blog will recall that we recently predicted continuing consolidation in commercial real estate finance and that we still do.

 

This new firm will enjoy a strong, established relationship with the 3 major government lenders. They can earn fees by originating loans but use Government money to fund them. No balance sheet risk…nice. Plus they will have a servicing portfolio approaching $13B…really nice…

 

Commercial Mortgage Loans – MasterPlan Capital LLC Loans for the Purchase and Refinance of Commercial Real Estate From $1MM+

 

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Landlords, Collect Every Penny You are Owed. Banks are Turning Down Loans if Buildings Don’t Cash-Flow

January 30, 2009

The Blog at the American Apartment Owners Association (AAOA) is recommending that landlords take control of their cash-flow by implementing an electronic collections system.

This is good advice for times like these when every penny needs to be collected and counted.

Banks and all lenders have raised their debt-service-coverage ratios (DSCR). When it comes time to refinance your building you will need to show all the cash-flow you can. Don’t be turned down for a loan because you let some tenants get away with missing rent payments.

Apartment owners take the advice of the AAOA; collect every dime that is due you.

MasterPlan Capital offers a unique small balance commercial mortgage loan for the purchase and refinance of stabilized multi-family (apartment) properties. Apartment owners and investors may apply online and will receive an answer the very next business day.

Loans From $1MM – $5MM

5 Year Fixed @ 6.5%*

Amortized Over 25 Years

Loan-to-Value (LTV) to 75%

DSCR: 1.25

Minimum Credit Score: 640+

 

*Approximant rate based on the current 3 year US Treasury Bond yield + a margin of 3%-4%. Subject to change with market and other factors

The Best Thing for Government to Do For the Economy; Nothing

January 28, 2009

POLITICO makes The Case For Doing Nothing.

Nothing…hmmm…So crazy it just might work!

Commercial Mortgage Loans – Equity Financing – Asset Management – MasterPlan Capital LLC Apply For Financing Online

NY Commercial Real Estate Pros Seek Bail-Out; Commercial “New Deal” Needed

January 28, 2009

The landlords and commercial real estate investors of NY are warning that the lack of liquidity in commercial real estate finance will prove catastrophic if not addressed.

The problem is huge but the public is unsympathetic to rich property owners getting Government money while their jobs are being eliminated.

Read more in The New York Observer.

MasterPlan Capital has money to lend against commercial real estate. We offer commercial mortgage loans from $1MM and up for purchase and refinance of income producing commercial property. Our simple, 1 page, online commercial mortgage application is easy to complete and borrowers will receive a quick response and professional service.

Arbor Realty Trust Eliminates Q4 Dividend – Remaining Shareholders Fleeing Without Looking Back

January 27, 2009

 “Shouldn’t we get the woman and children into the life boats Capitan?”… “Yes…Woman and Children first…”

“Shouldn’t we get the woman and children into the life boats Capitan?”… “Yes…Woman and Children first…”

New York Stock Exchange traded REIT Arbor Realty Trust (ABR) will not pay a dividend to its shareholders for Q4 ’08.

Keep in mind that, by law, a REIT must pay out 95% of all earnings in-order-to retain its status as a REIT and the tax benefits that come along with it. So if they are not paying a dividend it means that they are not making any money…

Investors buy REITs for income. Owning a REIT that pays no income is like owning a cow that doesn’t give milk; there’s really no point to it.

This Just In: China Caused the World-Wide Mortgage Crisis by Manipulating its Currency!

January 26, 2009

Sebastian Mallaby, an OpEd guy for the Washington Post, makes a convincing case that China caused the global mortgage bubble that caused the global mortgage crisis that wreaked the global economy.

They intentionally cheapened their currency and consequently ran a huge trade surplus. The profits from that trade surplus washed over the US and the developed world like a tsunami and the mortgage / housing bubble ensued. Said bubble has since burst and the worldwide economy is now in the shambles.

MasterPlan Capital has money to lend against all types of commercial real estate. Visit our website and apply for a commercial mortgage loan. Low interest, institutional funding as-well-as private (hard money) loans. Quick response, professional service.

Commercial Mortgage Lending: Government (Fannie & Freddie) Supporting Multi-Family (Apartment) Lending – Lenders Have Billions to Lend

January 26, 2009

The credit markets are extremely tight today. It is nearly impossible to get a commercial mortgage for land or development, and almost equally difficult to find financing for retail, hospitality or office properties. The economic recession and the credit squeeze have combined to devastate the commercial real estate finance industry.

There is, however, at least one bright spot in the world of commercial mortgages; multi-family (apartments). Despite a severe contraction in the credit markets there is no lack of liquidity for multi-family loans. Property owners and investors will find plenty of money available for the purchase and the refinance of good quality apartment buildings.

Stabilized (low vacancy, good income) apartment properties make excellent collateral for commercial mortgage lenders. Because of their steady cash-flow they hold their value well and sell quickly even in down markets. In the world of commercial real estate multi-family is the most prized asset class. Multi-family properties are certainly not immune to economic realities but lenders know that apartments have a relatively strong track record in all economies.

The quasi Government entities Fannie Mae and Freddie Mac are offering tremendous support to the multi-family sector. Fannie and Freddie are buying huge amounts of apartment mortgage paper including purchase loans, refinance loans and even construction loans. The dollar amounts are staggering, these agencies have committed hundreds of billions to fund apartment buildings.

Bankers, Wall Street Brokers and Hartford insurance companies know that any multi-family loan they write to Fannie or Freddie’s specifications can be sold and turned into cash on any business day. That’s why lenders are not afraid of apartment building loans and will still originate them when the opportunity presents itself.
Borrowers or deal sponsors with good credit offering a quality apartment building as collateral should have no problem securing a commercial mortgage loan at a low interest rate and on excellent terms.

Loan-to-value ratios (LTV) are lower today then they were a few years ago but many lenders will still lend up-to 75% of a properties value. Apartment buildings need to have strong operating income in order to qualify for institutional funding and they have to be in good condition. Borrowers need to have a decent credit score of 640 or better and should be able to demonstrate a net worth and savings commensurate with the loan being sought.

Most multi-family commercial mortgages have fixed rates for a period of 5, 7 or 10 years but are amortized over 25 or 30 years to keep the payments low. Rates are based on an established index such as the yield of the 3 or 5 year U.S. Treasury Bond. A margin of 3%-5% is added to the index rate to establish the mortgage rate. If the short term Treasury is low, as it has been recently, investors can expect quotes of 6%-8% depending on the lender.

It’s not “easy” to get loan, but good quality multi-family deals are getting funded. Deals or borrowers who don’t meet the new, tougher standards will have to look to private funding sources and will be forced to pay higher rates and points.

MasterPlan Capital LLC has a new, small balance ($1MM-$5MM), multi-family commercial mortgage loan program and is actively funding the purchase and refinance of stabilized apartment buildings. We have over $100MM in lending capacity dedicated to small multi-family loans. Borrowers may apply online. Our simple, 1 page commercial mortgage loan application takes only a moment to complete and we will respond the very next business day.

Lots of visitors from alphainventions.com

January 25, 2009

Our biggest traffic day ever was 1/16/09 and most of the visitors we received on that historic day were referred to us by alphainventions.com. Wow…thanks for looking guys.

www.masterplancapital.com

Commercial Mortgage Loans; Lenders Have Billions to Lend for Apartment Buildings (Mulit-Family)

January 23, 2009

There is ample reason for most commercial real estate investors to despair during the “credit squeeze” that we are now experiencing.
The recession has devastated the retail, office and hospitality sectors of the industry and developers can’t find financing anywhere. But amid the doom & gloom, so prevalent in the commercial real estate finance industry, there is a bright-spot; it is multi-family.

Apartment owners are finding that there is no shortage of liquidity for funding purchase or refinance loans against stabilized apartment buildings. Even in this weak economy and credit crisis banks and other traditional lenders have been committing hundreds of billions of dollars to multi-family lending.

There are 2 reasons that lenders are still willing to write apartment building loans. The first is the fact that stabilized (low vacancy) apartments make great collateral for the banks shareholders. Apartment buildings are not immune to economic downturns, but tend to hold up better than most other income generating real estate when things turn bad. After-all, people have to live somewhere even during recessions. Buildings that are full of good tenants with long leases sell quickly and at premium prices. Multi-family assets are prized by investors and lenders alike.

The second and probably most important reason that multi-family loans are still flowing is because the Government is buying them like crazy. Fannie Mae and Freddie Mac have an almost unlimited appetite for loans against apartment buildings. Large or small Fannie and Freddie will buy them all (as long as their standards are adhered to). Lenders know that properly underwritten multi-family mortgage paper can be turned into cash at a moment’s notice, so they are not at-all afraid to write apartment loans.

That is not to say that standards have not tightened, they have. It is harder to get a loan for a multi-family asset than it was 2 years ago, but, unlike other asset classes, you can get a loan.

The typical loan-to-value (LTV) ratio is now 75% (+/-) and lenders will insist on good occupancy and decent cash-flow. Borrowers will need to have a credit score of 640 or better and will need to demonstrate personal financial stability. The property must be in good repair (not much deferred maintenance) and be in a good location. Current interest rates are at very attractive, historic lows and most lenders can fix today’s low rates for 5, 7 or even 10 years. The loans are usually amortized over 25 or more years so monthly payments are very manageable.

The credit crisis is a serious problem and investors who can’t meet bank standards will be forced to seek more expensive, private funding sources. Credit worthy investors with good, income producing properties, however, will have no problem finding the funding they need.

MasterPlan Capital LLC has a new, small balance ($1MM-$5MM), multi-family commercial mortgage loan program and is actively funding the purchase and refinance of stabilized apartment buildings. We have over $100MM in lending capacity dedicated to small multi-family loans. Borrowers may apply online. Our simple, 1 page commercial mortgage loan application takes only a moment to complete and we will respond the very next business day.

New Commercial Mortgage Loan for Multi-Family (Apartment Building) Loans

January 23, 2009

MasterPlan Capital is actively seeking to make loans against stabilized apartment buildings.

We will loan up to 75% of value for good quality multi-family properties.

More details can be found by reading this post.

Visit our website at: www.masterplancapital.com