Relationships in the commercial lending business have always been important. Certainly borrowers need relationships with lenders, but I just had an interesting case come to me from some borrowers in England that own multifamily property here in the States for which they're looking for financing (more specifically, bridge financing).I just don't see the transaction getting funded in this environment, but the thought hit me that the destruction of the U.S. credit markets has included the total ... Read Full Story

It seems to me that there are a lot of 'people' in various government jobs pushing supposed solutions into the commercial mortgage market.But an unproven "solution" is just an idea run up the flagpole, isn't it?Given that there is no meeting of buyers and sellers of CMBS, or even of the SBA 7a guarantees, perhaps if those people responsible for propping up the market quit then the right people could get into the right positions.After all, propping up a screwed up market through the or governm... Read Full Story

How does the stimulus create jobs?Isn't the stimulus more like just government handouts to complete this or that project that's on the drawing board that will go to the few companies still in business so they can retain their workers?I don't get how the stimulus will create a job, other than keep the bankers and financial wizards in place that started this mess.And even if it does create jobs, how do we know it was from the stimulus? Read Full Story

With all the criticism of the outdated banking and regulatory structure that allowed the financial disaster to take place that brought down markets worldwide, may I ask why they are still around?Why is it that the very model which caused this problem is being funded to survive?If the system that caused the problem remains, aren't we just feeding the monster? Read Full Story

I took down my website this week and replaced it with a one-page announcement that the site isn't coming back up until the credit markets revive.With plenty of business, most of us commercial mortgage brokers cannot get funding on any property type, of any credit quality, from any institution calling themselves a lender. Its just plain dead out there.CMBS is long-gone. Big Bank and Regional Banks are completely out of the market. Community Banks now are saying "doesn't meet our... Read Full Story

Got a call today from a colleague in another state who has a commercial mortgage brokerage practice exclusive to multifamily deals.He clearly knows how to spread, package, and present his deals but called today out of frustration at the lack of interest by lenders of any size or type in his transactions.Mind you, these are not edgy transactions. Most brokers are now seeing some of the very best transactions of their lives - but can't get any money for them no matter what.What's surpr... Read Full Story

The famous Austrian Josepth Schumpeter coined the phrase "creative destruction" to describe a process of radical transformation that accompanies radical innovation.An example would be the spread of the internet that destroyed the value of old-line established companies.Destruction is sometimes a violent prospect, but out of any destruction comes green grass, a clean slate, hope, vision, planning, and eventual building.Living in the automotive State of Michigan, and having a differen... Read Full Story

While the government is spending a lot of time, money, and effort in an attempt to stimulate the economy and consumer confidence, it seems to me that much of this is misdirected.For example, the majority of the money is going to big companies (that started this mess) like banks, hedge funds, etc. with the reasoning that they must not fail.However, this does not build confidence for the man on the street. I continue to get calls from business and commercial real estate borrowers who are very ... Read Full Story

Just in from the NYT, the report on job losses now whacking good borrowers into foreclosure.The vast swaths of real estate that sit empty across this country will take a while to fill in, meanwhile, as long as they're out there real estate values will be supressed.The impact on commercial real estate will follow the old dictim, "Retail follows rooftops."If homes are empty, retail strips and stores will be empty as well. No one's out there buying much of anything.If you did ... Read Full Story

As a statistical summary of the decline in SBA lending, in Michigan here are thei differences in second quarter 09 vs second quarter 08:504 loans: 43 vs 127, or a decline of 66%Total 7a loans: 391 vs 1,077, or a decline of 64%This represents the big problem in small business lending:1. No banks are willing to do the first portion on conventional terms for the 504 loan.2. There is no secondary market for the 7a guarantees, so the only banks lending must hold the deal in their portfolio (as... Read Full Story