Mortgage Banking

Making sense of commercial real estate finance.

Happy New Year

Posted by Jordan Crouch on January 5, 2009

  • ECONOMIC NEWS: Uncertainty greets the new year as investors grapple with a volatile market, President-Elect Obama presents his proposed stimulus package, and bond yields, especially the Ten Year Treasury Bill, are at all time lows. The continued fallout from Barry Madoff’s Ponzi scheme is also affecting the market.
  • LENDING MARKET: With Banks licking their wounds from 2008 and conduits still a distant memory, Life Insurance companies look to be the dominant lender for 2009 in addition to Freddie Mac and Fannie Mae. Expect more conservative underwriting, higher cap rates and lower loan to values in 2009. Most property types will be financeable in ’09 with apartments, industrial and officer properties being the preferred type (in that order).
  • REFERRALS: My business is built on referrals. For those that referred someone to me in 2008 I deeply appreciate it and thank you for trusting me with your recommendation. I’m always looking to educate and assist people with financing commercial real estate. If you know of a client, associate or yourself who would like to look at a refinance or purchase, I’d love to help. If you’re comfortable sending me their name or giving my name out, please do so. Thanks again. I appreciate your support.  Here’s to a successful 2009!

Posted in Capital Markets, Lenders | Leave a Comment »

Fed Lowers Rate

Posted by Jordan Crouch on December 16, 2008

Posted in Uncategorized | 1 Comment »

Prepayment Penalties in Today’s Market

Posted by Jordan Crouch on December 12, 2008

The SquareFeet Blog has an excellent post detailing how the shifting treasury yields are affecting prepayment penalties. Read the article here. One thing the post does not mention is that for a borrower that is forced to sell a property, one way to avoid these hefty prepayment penalties is to have the new borrower assume the loan. This usually can be done with a 1% fee versus paying the prepayment penalty of 10% (using the example in the post).

Posted in Capital Markets, Finance 101, Lenders | 3 Comments »

Tell us something we don’t know

Posted by Jordan Crouch on December 9, 2008

Apartments rank as best investment among institutional investors.

Posted in Capital Markets | Leave a Comment »

Lender’s Attitudes Towards Property Types

Posted by Jordan Crouch on December 3, 2008

This is a quick summary of lending attitudes for each of the main property types specific to the Seattle area at this particular moment (Dec. 2008).

Apartments – Love them. People have to live somewhere. With rising interest rates and fewer condo developments, people are moving back into apartments.

Industrial – Good. Easy property to take care of; sweep the floor, maybe a new coat of paint, and its

Office – Ok, as long as it’s leased. It’s a tenant’s market, therefore if your building is fully leased, it shouldn’t be a problem.

Retail – No, unless it’s fully leased, long term tenants, grocery anchored, on a main arterial without other retail competition. In other words, not likely.

Hotel – No.

Condo – **Click** (as in the lender just hung up).

Posted in Capital Markets, Seattle Real Estate | 2 Comments »