Archive for February, 2009

Capmark Suffers $800M Loss in Q4, Could Default on Debt

February 28, 2009

Capmark, the GMAC Spin-off, has reported that losses will be $800M for the 4th quarter of ’08 and warned that losses could grow. They tapped out virtually all their credit and could soon default on some of their debt.

They, like everyone else in the financial sector, are in negotiations with creditors to restructure their loans…

 

Apply for a commercial mortgage loan; online.

11% Unemployment? It could happen…

February 28, 2009

unemployment-after-a-banking-crisis

This chart produced by a Harvard economics professor suggests that the average unemployment up-tick after a banking crisis is 7%…We were at about 4% before our banking crisis…4+7=11%. Yikes!

 

Click here to read the original report

FHA Adjusts Loan Limits

February 27, 2009

The good folks over at the American Apartment Owners Association blog are happy that the FHA has eased restrictions on the number of loans an investor can have.

 

It is, of course good news for those who rent out residential housing, but I would remind all that it is easier to manage one 10 unit building than it is to manage 5 duplexes, and investors in commercial multi-family (6 units +) don’t have to worry about the FHA limits.

 MasterPlan Capital LLC; Commercial Real Estate Investment Banking

 

You Can Get a Commercial Mortgage From a Hedge Fund or Private Equity Firm

February 26, 2009

The LTVs (loan-to-value ratios) are lower (rarely above 65%) so you’ll need a good amount of your own cash (or a well-heeled partner) and the rates and points are higher (mid to upper teens with 4+ points minimum) but hedge funds are flush with cash and they make decisions at lightning speed.

 

The President of our firm has written an article on securing commercial mortgage loans from hedge funds and other private investors. It has quickly become one of the most popular downloads on the internet. You can find it all over the web via Google (hundreds of sites and blogs have reprinted it) or just click here to view it.

 

We lend private funds against income producing property and have tons of Wall Street contacts that can and do fund deals that make sense.

 

If you need a commercial mortgage, (privately funded or institutional) visit us on the web. Click the contact page to call or drop us an e-mail or feel free to click on “Apply For Financing” to use our simple, 1 page commercial mortgage application.

Wells Fargo Tops $2 Trillion in Mortgage Servicing Rights

February 26, 2009

$2,000,000,000,000; that’s a lot of dough!

When Wells Fargo acquired Wachovia they snared an additional $379B in servicing rights bringing their total servicing portfolio to $2.1T.

Some of the loans are floundering (~4% of prime loans are delinquent) and foreclosures are rising to problematic levels (~1.5%) but, so far, Wells seems to be managing the portfolio very well. Wall Street and the world will continue to watch this situation closely.

Wells also recently reported more than $70B (a new record for them) worth of mortgage applications in the pipeline. Nice. We should start seeing those close in March ’09.

Commercial Mortgage LoansMasterPlan Capital LLC – Equity Financing – Asset Management – Easy Application – Prompt Professional Service

Lehman Wants to Sell ALS But Nobody Want to Buy it

February 26, 2009

The bankrupt Lehman Brothers Holdings has been trying to sell Aurora Loan Services, (ALS) its alt-A mortgage servicing unit (alt-A = less than prime, more than sub-prime) but can’t find a buyer. According to an investment banker they have been actively seeking a buyer for “several months”

ALS is one of the top 20 residential mortgage servicing companies in the country. We don’t have their current numbers but do know that at one time they held the rights to more than $120B in loans. The bulk of the loans are alt-A but there is some sub-prime as-well as some A paper in the portfolio.

ALS is not part of the famous Lehman bankruptcy that nearly caused the end of life as we know it. ALS is in-fact, part of Lehman Brothers Bank domiciled in Delaware.

It is a testament to our times when no one is willing to agree to buy the rights to collect fees on $100B+ just because the business deals in less than perfect mortgage paper.

Commercial Mortgage Loans – www.masterplancapital.com

MBA; “Include Commercial Mortgage Backed Securities in TALF”

February 25, 2009

Reuters is reporting (click here to read the Reuters report) that the Mortgage Bankers Association (MBA) is lobbying the Government to expand the TALF (Term Asset-Backed Loan Facility) to cover commercial mortgage backed securities (CMBS) in addition to the residential variety.

We are not big on Government intervention but acknowledge the magnitude of the problems facing the mortgage bond market.

Commercial mortgage loans are generally written in 5,7 or 10 year terms. Hundreds of billions of dollars worth of loans originated in ’00-’06 are coming due over the next few years. These loans must be refinanced or the banking system will be faced with a commercial mortgage crisis just as it begins to recover from the residential mortgage debacle.

Commercial Morgage Loans From $1MM+ Visit MasterPlan Capital LLC and Apply Online

Commercial Mortgage REIT iStar; On The Brink

February 25, 2009

The REIT iStar, which invests in commercial mortgage loans, is rumored to be very close to defaulting on some of its own mortgage covenants. They are said to be in desperate talks with their creditors to renegotiate their debt.

It was not long ago that iStar was an investment grade company. Today they are on the brink. The once esteemed management team has been reduced to looking under the couch cushions for cash. If the creditors don’t play ball the company could fall…stay tuned.

Private and Institutional Commercial Mortgage Loans – Apply Online MasterPlan Capital LLC

The Economy: It’s going to get worse before it gets better.

February 23, 2009

A study of history by two academic types; Carmen Reinhart (U. of Maryland) and Ken Rogoff (Harvard) strongly suggests that this boondoggle of an economy is going to get worse (quite a bit worse) before it gets any better.

 

12-15% unemployment…could be…home prices down another 20-25%…very possible…stagnant growth or continued recession…most likely…

 

Those of you into bad news are welcome to read their conclusions.

 

MasterPlan Capital LLC – Making Loans – Closing Deals –

Commercial Mortgage Loans – Equity Financing – Asset Management

Apply Online.

It’s called a “Stimulus” package, but will it stimulate. Politicians say “yes” but what do economists say?

February 13, 2009

It’s called a “Stimulus” package, but will it stimulate. Politicians say “yes” but what do economists say?

 

Some say yes it will stimulate. Others say no way.