Comments on: Is This the Bottom for Commercial Real Estate Prices? http://www.biggerpockets.com/renewsblog/2009/06/23/bottom-commercial-real-estate-prices/ Learn, Network, Invest Mon, 23 Nov 2009 01:38:39 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Ted Hurlbut http://www.biggerpockets.com/renewsblog/2009/06/23/bottom-commercial-real-estate-prices/comment-page-1/#comment-66620 Ted Hurlbut Thu, 02 Jul 2009 22:14:13 +0000 http://www.biggerpockets.com/renewsblog/?p=5718#comment-66620 There are attractive opportunities for existing independent retailers or prospective new retail ventures to secure outstanding retail space at very attractive rents. Landlords who previously wouldn't even talk to independent retailers are suddenly much more flexible. Don't be afraid to ask for exactly what you need to make the deal work, and don't hesitate to walk away if you don't get it. If you work the market, you'll find the space you need at rents and terms that work for you. There are attractive opportunities for existing independent retailers or prospective new retail ventures to secure outstanding retail space at very attractive rents. Landlords who previously wouldn’t even talk to independent retailers are suddenly much more flexible. Don’t be afraid to ask for exactly what you need to make the deal work, and don’t hesitate to walk away if you don’t get it. If you work the market, you’ll find the space you need at rents and terms that work for you.

]]> By: Jim Turner http://www.biggerpockets.com/renewsblog/2009/06/23/bottom-commercial-real-estate-prices/comment-page-1/#comment-66476 Jim Turner Thu, 25 Jun 2009 02:10:48 +0000 http://www.biggerpockets.com/renewsblog/?p=5718#comment-66476 Approximately one in eight mortgages nationwide are currently in some stage of default or foreclosure. None of these houses are on the market yet, but it's a safe bet that almost all of them will be eventually. Second, there is a massive wave of Alt-A and Option-ARM mortgages that are due to reset/recast starting later this year, lasting through all of 2010 and 2011, and into early 2012. Option ARMS are mortgages that permit the borrower to pay even less than the interest owed, let alone any principal. The shortfall is added to the balance. Once the balance reaches 125% of the original loan, or a certain time (3-5 years into the loan) is reached, the payments jump to become fully amortizing, which will often double the payment due or worse. Alt-A loans are also known as "liar loans" because they were taken by borrowers who were not required to provide any evidence of their income or assets. Both types of loan were very widespread in the Bay Area. We ain't seen nothing yet. Approximately one in eight mortgages nationwide are currently in some stage of default or foreclosure. None of these houses are on the market yet, but it’s a safe bet that almost all of them will be eventually.

Second, there is a massive wave of Alt-A and Option-ARM mortgages that are due to reset/recast starting later this year, lasting through all of 2010 and 2011, and into early 2012. Option ARMS are mortgages that permit the borrower to pay even less than the interest owed, let alone any principal. The shortfall is added to the balance. Once the balance reaches 125% of the original loan, or a certain time (3-5 years into the loan) is reached, the payments jump to become fully amortizing, which will often double the payment due or worse. Alt-A loans are also known as “liar loans” because they were taken by borrowers who were not required to provide any evidence of their income or assets. Both types of loan were very widespread in the Bay Area.

We ain’t seen nothing yet.

]]> By: Bryan Ellis http://www.biggerpockets.com/renewsblog/2009/06/23/bottom-commercial-real-estate-prices/comment-page-1/#comment-66439 Bryan Ellis Tue, 23 Jun 2009 19:23:56 +0000 http://www.biggerpockets.com/renewsblog/?p=5718#comment-66439 We are certainly going to see dip in the commercial sector soon. Most of the savvy investors that I know, including myself are preparing for this to rescue commercial distressed business owners. The beauty of this is that you don't even need your own funding to help the coming situation out. Find out more on my site <abbr><em>Bryan Ellis’s last blog post: <a href="http://realestate.bryanellis.com/1464/homes-are-selling-faster/" rel="nofollow">Homes Are Selling More Briskly… And It’s “Bad” News</a></em></abbr> We are certainly going to see dip in the commercial sector soon. Most of the savvy investors that I know, including myself are preparing for this to rescue commercial distressed business owners. The beauty of this is that you don’t even need your own funding to help the coming situation out. Find out more on my site

Bryan Ellis’s last blog post: Homes Are Selling More Briskly… And It’s “Bad” News

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