Posted by Jordan Crouch on October 22, 2007
Disappointing earrings reports from BofA and WaMu and the market tanking caused investors to buy US Treasuries as a safe harbor for their money. This sent the 10 Year T-Bill’s yield to the lowest it’s been in more than 30 days. (See graph here)
It’s a little ironic that last Friday’s T-Bill yield drop coincided with the 20 year anniversary of the Black Monday Crash.
Posted in Capital Markets, Finance 101 | Leave a Comment »
Posted by Jordan Crouch on October 18, 2007
The is a list of information needed for underwriting a commercial real estate loan. The more information I have up front, the easier it is to underwrite the deal, get a lender to quote it, and get that quote to the borrower.
- Property P&L – last 3 years & year-to-date
- Detailed rent toll with lease start/stop dates
- Borrower Profile
- Copy of existing appraisal
- If #4 not available, provide land size, parking count, age, address, building description & zoning
- Existing loan balance & lender
- Copy of purchase agreement if applicable
- Desired loan amount, term & amortization
Posted in Finance 101 | Tagged: Finance 101, Loan, Underwriting | 2 Comments »
Posted by Jordan Crouch on October 17, 2007
- Ask. Ask for recommendations from your friends, colleagues, attorneys, etc. Everyone knows someone. Take someone’s recommendation with a grain of salt. It is still up to you to make the decision. (One word of warning: someone who specializes in residential mortgages is usually not qualified to do commercial mortgages. The residential and commercial real estate industries are two completely different animals.)
- Investigate. Make a list of several mortgage bankers and ask the following questions (many answers to these questions can be found online): Are they local? How much experience do they have? Do they specialize in your property type? What lenders do they represent? Who will service your loan? Know what you expect from your mortgage banker and what they expect from you.
- Interview. Hopefully, you have talked with several mortgage bankers by now. If you have not, give your top two picks a call. Take the time to meet with them. Part of the success at getting a mortgage is working with people you know, like and trust. It is possible to do business without these, but it makes the process 100% better when you do.
- Decide! If you have done your research, got recommendations from others and met with at least two mortgage bankers, you will have all the information you need! It’s up to you to decide who you want to work with. Making the correct choice for your situation will make getting your mortgage an easy and efficient process.
Posted in Finance 101 | Tagged: Commercial Real Estate, Finance 101, Mortgage Banker | Leave a Comment »
Posted by Jordan Crouch on October 15, 2007
Gooman Hospitality Investments, the hotel arm of Goodman Investment Group owned by John Goodman (not the actor), recently purchased three hotels; two are in Acapulco, Mexico and one is in Hamilton, Bermuda. All three are Fairmont Properties. The article on GlobeSt.com didn’t mention the price paid but said Hypo Real Estate Capital provided a $402 million loan, which included funds to reposition the property. Hypo is a Munich based bank (and very active in the US market currently). Goodman Investment Group includes Goodman Hospitality Investments, Goodman Real Estate, Pinnacle Realty and Triad Development.
Posted in Finance 101, Seattle Real Estate | Tagged: Finance 101, Goodman, Hypo, Seattle | Leave a Comment »
Posted by Jordan Crouch on October 15, 2007
· Conduit lenders are back quoting deals and actively trying to grab market share.
· Retail Sales report showed a stronger than expected gain for September, causing the 10 year T-Bill (and the rest of the market) to jump.
· After rising last week, the market (NASDAQ/S&P/Dow Jones) is currently down anticipating disappointing earnings reports.
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RATES
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TODAY
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LAST MTH
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LAST YR
|
|
5 Yr T-Bill
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4.41%
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4.32%
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4.75%
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10 Yr T-Bill
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4.68%
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4.63%
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4.78%
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LIBOR-30 Day
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5.04%
|
5.61%
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5.32%
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Posted in Capital Markets | Leave a Comment »
