User Power
Value/Post Ratio
456%
- Jul 24, 2007
- 4,228
- 19,300
The biggest lending crunch in history is about to hit the commercial market. A very high percentage of commercial loans will be coming due this year. What this means is that unless money becomes available for these owners to refinance, there will be a tremendous amount of defaults.
The past lending environment was allowing people to purchase office buildings and retail centers with much lower down payments than was allowed in past years. That has tightened up. Combine this with the shrinking occupancy and a sour outlook over the next couple years. Lenders are not going to have the ability to underwrite many of these loans for anything close to what is owed.
Expect a major crash in commercial.
Don't expect to be able to get in with little down for a while. Underwriting is going to be very strict for a while. Banks are going to be in protection mode.
There will be some great deals out there for those with loads of cash!!!
The past lending environment was allowing people to purchase office buildings and retail centers with much lower down payments than was allowed in past years. That has tightened up. Combine this with the shrinking occupancy and a sour outlook over the next couple years. Lenders are not going to have the ability to underwrite many of these loans for anything close to what is owed.
Expect a major crash in commercial.
Don't expect to be able to get in with little down for a while. Underwriting is going to be very strict for a while. Banks are going to be in protection mode.
There will be some great deals out there for those with loads of cash!!!