Trump: don't Fear a Real Estate Collapse

[tchandy]

Donald Trump provides his current assessment on the commercial real estate market.

http://money.cnn.com/video/news/2010/04/05/n_co_trump_real_estate.cnnmoney/

Enjoy,
Tom

 

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[Smooth]

Would you expect him to say anything else?

 

[hakrjak]

I'm sure he didn't fear a collapse the 1st time he got caught under that tidal wave either though haha

- Hakrjak

 

[hatterasguy]

He pretty much just said what ever other RE investor I know and I have been saying. The banks are not lending, thats the biggest problem. If you have cash the world is pretty much yours. But commercial will straighten itself out, its a totaly different animal from residential.

Trumps 100% correct.

 

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[randallg99]

I love his hotel rooms

 

[hofster]

The financial conditions enable land and housing prices to climb and climb, and borrowers base their decisions on the assumption that asset prices will continue to increase.

 

[Pete799p]

I agree that the problem is the banks are not lending but I disagree that the government should force them. If they want the banks to increase lending they need to stop suing them and loosen up lending regulations. Banks are still afraid to issue mortgages and development contracts to the point where housing sales are flat.

Everybody blames the banks for this housing bubble but allot of people made a lot of money (blue collar included) because of the bubble and the focus should be on creating the next bubble not trying to prevent it. Economies are cyclical and go through bubbles(expansions) and contractions(recessions). The government cannot prevent recessions. The only thing they can do is effect the durations of the given economic cycle (econ101). People need to take responsibility for themselves and their own actions. The people who bought houses on the assumption that they would appreciate in value assumed wrong. It is as much their fault for paying that high price as it is the bank for giving them the money. The government is not our parents and cannot protect 100% of the people 100% of the time. Many people who were living within their means during the expansion and saving are making a killing in this cash is king market. I know several individuals who are buying bankrupt businesses and foreclosed homes making a killing.

 

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[roc]

There is a storm brewing for commercial real estate, which could be huge with all the defaults.

 

[Pete799p]

I think the biggest issue that commercial real estate is going to have to deal with goes back to the bank regulations. Unless this has changed recently the government will not allow banks to refi. commercial property that has gone underwater. Therefore when non delinquent commercial property owners go to refinance their balloon/interest only loans etc. they will be unable to. This could force otherwise performing assets into foreclosure. I guess time will tell.