Over the last several weeks I’ve been working on my Commercial Funding blog to try to spread the word on what we can do for you.
I have an unbelievable team with some of the most experienced commercial funding experts in the country.
If you have a commercial real estate funding need, we can help or it won’t get done!
Let’s get your Commercial Real Estate deal funded.
http://getCommercialFundingHelp.com/blog
While commercial and residential real estate were certainly much worse off two years ago, we still have a VERY long way to go before we can say that real estate is recovered.
The one place that real estate seems to be doing better right now is in the first time home buyer area.
This is a market that certainly is in better shape. I think that many people in their second or third homes have decided that they are just going to stay put for now unless they are moving due to a job change.
So, my recommendation if you are thinking of getting into real estate or kicking your business up a gear, is to focus on the first time home buyer or first time home renter market.
These are the homes that are priced below the median value for the neighborhood.
Focus on 3 bedroom homes, pref with at least 1.5 bathrooms.
As far as commercial and multi-family markets, they still have a way to go as well and I believe that they will suffer for several more years.
Multi-family properties will likely recover faster than the rest of the commercial sector.
If you are a multi-family or commercial owner and have issues with your current financing, comment on this post.
I won’t publish it if you don’t want me to.
I can help with your commercial and multi-family real estate capital structure and specialize in commercial loan modifications.
I put together a list of everything we will need to get your funding request approved for a commercial bridge loan.
For the fastest review of your funding request, be prepared to provide the following documentation: (After initial review we will need additional documentation for verification, but this will allow us to get started)
_______Executive Summary for the project or funding request.
_______Existing mortgage loan information
_______Personal financial statement and schedule of real estate owned for each principal borrower (Anyone with 20%+ Ownership
_______Past Two Years Financial Statements for the property certified by your CPA
_______Interim Financial Statements for property or business certified by your CPA
_______Current Rent Roll certified by sponsor
_______List of capital improvements performed within the last two years (include dollar amount and completion date) certified by sponsor
If you are brand spankin’ new to real estate, I would say no, you absolutely should NOT check out Bulk REO or commercial real estate for that matter.
If you have been around real estate for a while now, and you are looking for better, bigger discounted deals, then yes, this is what you should be looking at.
The typical rehabber should not be looking at bulk REO deals unless they want to get out of rehabbing or if they have a great rehabbing team that they don’t need to stay on top of things 24/7.
In fact, if you want to check out Bulk REO deals, go grab this free report.
It’s the real deal.
I have been working with a couple of hedge funds for the last year and they are HUNGRY for these deals
You can also see my thoughts on using BULK REO investing to become the toll booth for bargain real estate in your market.
You find the BULK REO deals, they buy or fund them for you. Good deal in my opinion.
Did you realize there have already been 103 failed banking institutions in the United States this year?
They always happen on Friday… so expect to see a few more tomorrow.
I have been projecting out to the end of the year that we will have at least 180 failed banks for the year.
Is that a high number?
Let’s explore it. Below is a link to the FDIC website where they list all of the failed banks for the past 10 years. It’s a little bit top heavy don’t you think?
http://www.fdic.gov/bank/individual/failed/banklist.html
I will break it down by year because I haven’t done that for a while.
Year – Number of failed banks
2000 – 2
2001 – 4
2002 – 11
2003 – 3
2004 – 4
2005 – 0 (Yes that’s a Zero)
2006 – 0 (Another big goose egg!!)
2007 – 3
2008 – 25 (UH OH!!)
2009 – 140 (YIKES!!!!)
By July 24th in 2009 – We had 64 banks shut down
This year, by July 23rd – We have had 103.
Maybe you think things are slowing down a little now?… They aren’t. You watch.
By the end of 2010, we will have at least 180 failed banks… maybe more. Here is a little more detail about this year’s stats. You will notice that we aren’t slowing down, staying pretty steady if you ask me.
Month – # of bank failures in 2010
Jan – 15 Failed banks
Feb – 7
March – 19
April – 23
May – 14
June – 8
July – 17 (None just prior to the July 4th Holiday and we still have one more Friday to go as I write this)
Do you think the FDIC is concerned about this… or about the perception of the public?
I’m going to tell you that they absolutely are. Do you remember in October 2008 when the FDIC bumped up the FDIC Insured Coverage amount for deposits from $100,000 to a whopping $250,000? That was directly related to consumer sentiment about the stability of our banking system. It was a temporary measure to increase the coverage. They had said at the time this would be lowered back down on Dec. 31 2010 – projecting the crisis would be over by then.
Guess what… they just made it permanent. Well, actually it was made permanent by the “Dodd-Frank Wall Street Reform and Consumer Protection Act” signed on 7/21/2010 by the President, see the press release below.
http://www.fdic.gov/news/news/press/2010/pr10161.html
So, who are these banking institutions that are failing? Well, they are NOT the big banks. You know, the “Too Big To Fail” banks like Bank of America, Citi, Chase, Wells Fargo. Nope, these banks all got their whopping tarp money and are making a TON of money off of zero or nearly zero interest loans from the FED.
The banks that are failing are YOUR neighborhood banks. You know, the one’s with only 2 or up to maybe 10 branches. Those are the majority of the failures. This is all getting swept under the mat on the news. Nobody is even covering it. Why is that? Do you think they are being told to “Pipe Down” about the bank failures?
This would be newsworthy in any other year. For some reason, the news media does not care about it.
Well, I have an idea for you. Go talk to your local bankers and let them know what you do. See if there is a fit for you to help them or some of their clients.
If you are a Realtor, maybe you can help them with their marketing.
If you own a landscaping company, maybe you could help them clean up their REO properties to give them some curb appeal.
Are you a contractor? See if you can do some work on the houses to make them show better on the inside or outside.
If you are out of work, there IS work to be done. I’m totally serious!
Maybe, if the bank won’t pay you upfront, you could do a little profit sharing with them or negotiate with them to get paid when they sell the property.
Or, if you have no work right now, maybe you could use one of these properties as a showcase of your talents. Create a history book of the property, what you did and how it turns out.
What if there was a way that you could not only help your local bank get out of trouble, but also help the local property owner get new funding?
There is a lot of work ahead of us all to get this economy going. Housing is a huge opportunity, but start out slow if you are just getting going.
Over the past year, we saw 140 banks close down in 2009.
This year we already have 57 failed banks as of April 23rd,
just before the end of the first 4 months of the year.
Rest assured, tomorrow there will be more.
So, if we can assume there will be at least 3 more tomorrow,
that is 60 for the first four months of 2010…
1/3rd of the way done with the year.
Extrapolate that out for the year and we will exceed the number
of failed institutions from 2009 by 40 banks!!
That is a pretty big jump.
OK, so you argue we are in a recovery now…
Not so fast. Commercial real estate and I believe
residential mortgages are still going to continue to default.
These things don’t just stop because the new
unemployment filings are down for the past two weeks.
There is a big log jam still waiting to break free.
The biggest of which is in commercial real estate.
The failing institutions are not the too big to fail Wall Street banks.
Nope, these are your neighborhood banks and smaller regional banks.
The government is NOT going to prop them up.
They shut them down and transfer the assets to another, seemingly stronger institution.
Further consolidating the banking industry and making it less personal when you go
to the teller window. Oh, you don’t go in there anymore.. try it sometime.
See the difference between a local bank and a large regional bank… but I digress.
I am going to be holding a webinar with an expert in the commercial real estate foreclosure and short sale niche. This is actually going to be a series that we’ll be doing over the next couple of months to get you prepared to take this head on… with a team behind you.
Let’s help those local banks not get swallowed up and spit back out by the FDIC.
Let’s help local businesses and commercial real estate investors with their troubled loans.
Let’s become the savior in our own communities for these troubled folks and help as many people as we can.
I leave you with one of my favorite quotes from Zig.
“You can get ANYTHING in life that you want… if you will just help enough OTHER people get what THEY want”
How does that sound?
Ready to get busy?
Seriously, why is Obama picking just 5 states to help out with the foreclosure crisis to the tune of an additional $1.5 billion???
I do not understand this logic at all.
We already have programs in place to help with affordable housing.
The banks already have loan modification/workout groups and loss mitigation departments.
The banks will already do a short sale which, many times is a better solution for the homeowner than a loan modification. (This is not legal advice either, but the options are there).
See the article below.
http://cli.gs/zgjTyz
The administration and the government as a whole need to focus 100% of their attention on how they can spur the private sector to expand and create more jobs.
The clues are right there in the article folks.
(Hint, it’s not going to happen if you increase taxes)
It is all about jobs, JOBS JOBS!!!!!
We can’t spend our way out of this by throwing money at more government programs and handouts!
The private sector can get the economy going again if they have access to funding.
Right now, they can’t get the funding they need so they are not hiring.
Thus, no one is producing anything and since 10% of the country is not working (Actually much higher if you take into account the number of people that are not looking for work right now), no one is buying anything.
Look at the housing sector. The only reason that housing has had an increase in anything is because of the tax credit for home buyers. Without that incentive (A tax reduction incentive) the housing numbers would be abysmal.
How is dumping more money to save someone’s underwater mortgage going to help the private sector?
The only people that will help in the long run are the government workers (Which we keep getting more and more of) and the BANKS!!!
The big banks all made money last year right?
What did the banks do to actually help the economy though? Nothing.
They did not lend any money out.
We the people forcibly loaned the banks money and they turned around and horded it and bought smaller banks to get more access to your money.
The government needs to help small businesses get more funding and then step back and get their hands off the economy. Don’t increase taxes, don’t overhaul our insurance programs which will increase taxes and greatly expand government. They just need to back off. Spending tax payer money just so you can say we are doing SOMETHING is just plain stupid. Obviously, the stimulus program has not helped. Over the last year, what has happened? Has the economy gotten better? Unemployment numbers haven’t.
One thing the government is doing that I support is they do have some programs to help investors supply affordable housing and to rehabilitate commercial properties. Why do I support this? Because it puts construction crews to work and it creates safe, affordable housing. This helps spur the private sector.
If you want to join me for a webinar on some of the available Government Funding Options for Real Estate Investors, enter your name and e-mail address below.
I’ll be holding an encore call on Tuesday night, Feb. 23 at 9:00 PM EST.
Well, due to the snow storms last week in the DC area, I was unable to do my live call with my special guest on Hedge Funds and Commercial lending opportunities.
Because of the trouble, my guest has setup a special replay webinar that we can all view for a limited time. (He is pulling it to be put into his mentorship program soon).
I have a special 15 page report available for you as well. It will be sent via e-mail as soon as you verify your e-mail address.
This call is over an hour and half long and covers a ton of info on what you can do to start finding funding for commercial property owners or for your own commercial deals.
So PLEASE register now as we’ve had tons and
tons of people who want to be in on this and he may force me to pull it down any day now because my guest is planning to take this call and put it into his paid mentorship program.
Here’s what you’ll learn:
* How to enter the secretive realm of the
hedge funds, to connect them with money making
opportunities right in your neighborhood right now
* How to benefit from the commercial real estate
crash, without investing a dime in buying or selling
properties
* How to find deals with almost no work, so you
simply introduce someone to a private equity
fund or hedge fund and get a guaranteed
commission that can be enormous
* How to find a lender as opposed to yet another broker.
The difference? You’ll have access to the direct
decision-makers on the loans you want funded. And
they’ll have access to private equity and hedge fund
investors because everyone is participating in the
loans, not brokering them to someone else
* How to submit a deal so that there is no further work
required on your part
* A simple “back of the envelope” way to know
that a deal is likely to fly, and when it’s not.
* What makes a good deal or a bad deal?
* How to go to networking meetings and find deals
right and left
* How to connect applicants with lenders with a simple
two page form guaranteeing you will get paid, so that
is ALL you have to do, you’re done, and someone else
makes you money while you move on or pursue your
hobbies and spend time with family.
* How to make the big money in “commercial
loan modifications” and “workouts”
Remember, you will be sent to the replay page immediately after verifying your e-mail address and you will NOT walk away disappointed.
Enter your name and e-mail address right below to register for the call.
After you register above, you will get an e-mail to confirm your registration.
Open the e-mail and click the confirm link to be sent to the replay page.
Hey, did you hear the news?
Unless you get direct updates from the FDIC, you probably haven’t heard this yet. SIX (6) banks went belly up on Friday. That is a total of 15 for the year!! Last year, we only lost 140. Yeah right, ONLY 140. That was a HUGE number. This year is going to be an even bigger year of banks closing. I’ll bet that we see between 200-250 banks get shutdown.
So… WHO do you think is the most motivated seller out there right now? They don’t want you to know it and they put up a great front, but the banks and other lenders are the MOST motivated sellers for today and likely for the next 2-3 years. Why are they so motivated?
It’s simple actually, but not intuitive. The banks are getting hammered by the FDIC right now, so much so, the FDIC can not even keep up with the numbers of banks that they need to close. If the FDIC had the manpower and a way to handle it all, they would likely get it all over with quickly like ripping off a band-aid… but they can NOT handle all of the volume.
The Office of Thrift Supervision is one of the agencies that goes in and examines the banks’ books. If the bank is found to be out of compliance in the number of performing loans to non-performing loans and the amount of cash on hand, they have serious consequences.
So serious in fact, if the deficiencies are not corrected quickly, they come in and close down the bank. That is why you can bank on at least 2-5 banks closing on any given Friday right now.
What’s even worse, to help correct the issue, banks are calling commercial loans due to build up their cash reserves. The strange thing is, they are calling the PERFORMING LOANS due!!! They are then taking significant discounts on even performing loans just to raise cash. The reason the call commercial loans due is because they CAN. It is written into most of the commercial loans out there that the bank can call them due.
So, how can YOU take advantage of this situation?
If not more importantly, how can you HELP in this situation? Well, you and I are not going to fix this problem ourselves, it is just too big. However, there are several ways to help sellers, the banks and your own wallet in this economy. First, you need to arm yourself with the knowledge and the capital to get it done.
Good news!! If you are already dabbling with commercial real estate, or you think you’d like to, there are many ways to get involved. I suggest start small, learn the language and get relationships.
I will be hosting some webinars over the next several weeks to help you in that education process.
Also, if you missed my webinar on Thursday night, go below for the encore call.
You’ll see why once you get a chance to see it.
My guest has a way to accelerate your involvement in commercial real estate by hooking you up with funding straight from Government agencies that MUST lend this money out. In fact, they added an additional $4.5 Billion to this amount in 2009… Tons of it is still available.
If you tried to get on the call Thursday and couldn’t get connected, I would like to apologize. We had an issue with the original webinar link so we had to create a new meeting. A few people e-mailed me to let me know they connected but only saw a blank screen. So, I’m very sorry about the issue. To make up for it, Tuesday night I’m hosting an encore webinar.
Anyway, enter your name and e-mail address below for the replay.
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Enter your name and e-mail address here for access to the encore of our webinar on Government Funding Solutions for Investors and Developers. It happens Tuesday, February 23rd at 9:00 PM EST, 6:00 PM PT.
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We covered a TON of the questions that everyone sent in during the registration, and some of mine, too.
Of note, Sean went over:
• Low Income Housing Tax Credits
• HUD Programs
• Section 8
• The effect of the economic stimulus bill on us investors
• What the foreclosure bill has done to the market
• How much government money is available to us
• Soft financing programs
• Real live case studies
• And so much more
Full Disclosure: While Sean covered some great content on the call and there is no charge for the webinar, he can’t possibly teach you everything you need to know in a 1 hour webinar. There is an offer at the end to get further training and support from Sean.
If you decide to purchase his program, my company will be compensated and you’ll be helping me feed our children. 
Just need to let you know that.
