You Can Make Good Transactions in Bad Markets, and You Can Make Bad Transactions in Good Markets

This video talks about the following:

What transactions are getting done; The state of the CMBS market; and the interviewees' Outlook on commercial real estate.

While the maxim holds true, (see title) do you think he sounds too positive or what?

See the video at the original post here.

Fed scales back emergency lending programs

The Federal Reserve on Thursday said it is further scaling back two emergency lending programs as the U.S. economy improves.

The Fed will reduce the amount of money available to banks in short-term loans under a program called the Term Auction Facility.

For 84-day loans, the Fed will provide a total of $50 billion in loans in October, and $25 billion each in November and December. For 28-day loans, the Fed will continue to make $75 billion available monthly through January.

The Fed also is cutting back on a program where investment firms can temporarily swap risky securities for super-safe Treasury securities.


http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090924/FREE/909249991

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New Breed of Investors Arise After Recesssion (If it's Really Over)

The onslaught of the recession brings about a new breed of investors which online brokers seek to accomodate.

According to the Sept. 21 edition of Barron's, online brokerages are expecting bigger demand as budget-conscious investors and money managers change their investing habits, seeking lower fees.

Full article here.

CMBS and TALF - What's Going On?

TALF coming into the picture provides good opportunites for owners to refinance, investors to acquire investment properties, as well lenders to access capital.

TALF was expanded in May to include highly rated commercial mortgage-backed securities (CMBS).

Two REITs are expected to soon test the new CMBS component of TALF, with each projected to borrow up to $600 million against assets in their portfolios. A substantial amount of the capital raised will likely be utilized to pay down maturing debt.

As a result of the lengthy ramp-up time for this program, TALF has been extended through March 31, 2010, for existing CMBS and through June 30, 2010, for newly issued CMBS.

A growing number of large property owners, investors and lenders will take advantage of the program by year end.

http://commercialrealestateinvestmentadvisory.com/2009/09/18/outlook-on-commercial-mortgage-backed-securities-cmbs-and-term-asset-backed-securities-loan-facility-talf-%e2%80%93-3-of-3/

Lewis Ranieri says Commercial Real Estate at the Beginning of a Cycle which Can Potential Disrupt Economic Recovery

Lewis Ranieri, the mortgage-bond pioneer, said the U.S. housing market is “still very fragile” and commercial real estate is at the beginning of a cycle that will damage banks, potentially disrupting the economic recovery.

http://www.bloomberg.com/apps/news?pid=20601087&sid=axfiTJpVyYUM

Survey says U.S. property recession seen through 2011

NEW YORK, Sept 15 (Reuters) - Most of the U.S. commercial real estate industry is expected to remain in recession through 2011 with an industry-wide recovery not expected to begin until 2012, according to a quarterly survey commissioned by PricewaterhouseCoopers.

Read the full article here.

From Commercial Real Estate Investment Advisory: CMBS Loan Delinquency Rises

A report from the Mortgage Bankers Association (MBA) said that the delinquency rate on loans for 30 days or more held in commercial mortgage-backed securities rose 2.04 percentage points to 3.89 percent between the first and second quarters.

“The economic fallout of the recession continued to push commercial real estate delinquency rates higher during the second quarter,” said Jamie Woodwell, MBA’s vice president of commercial real estate research.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

Real Estate Executives' Compensation Declines

According to a new research study, real estate executives saw their total compensation (decline) — which includes base salary, annual incentive/cash bonus and the long-term value of stock awards — decrease for the first time in the past seven years. And not by a little, but by 19%.

The study was conducted by FPL Associates, a consultant to the real estate and financial services industries. The Chicago-based company has conducted its annual survey of the top 100 publicly traded real estate companies for the past seven years.

Read the full story here.

High-Profile Loan Defaults Put Institutional Investors Under Microscope

High-Profile Loan Defaults Put Institutional Investors Under Microscope

It has been a cruel summer for several of the nation’s largest and most respected institutional investors when it comes to the commercial real estate market. A combination of rising loan defaults, deteriorating property fundamentals and the long-term prospect of higher interest rates in the wake of massive fiscal and monetary stimulus is testing their fortitude.

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Financial Analysis Calculations for your Commercial Real Estate Investment (2 of 4)

Financial Analysis Calculations for your Commercial Real Estate Investment (2 of 4)

NPV is the sum of the present values of a commercial real estate investment’s positive cash flows and the present values of its negative cash flows. This calculation results in a single sum that can be positive or negative. Investors generally specify a required or target rate of return for investing capital; it is an “opportunity cost” concept.

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Commercial Real Estate Investment Calculation: Discounted Cash Flow

Using a simple spreadsheet software can help you solve the time-value-of-money problems commonly encountered in commercial real estate. You can calculate discounted cash flow (DCF) measures of value and return such as net present value, internal rate of return, and modified internal rate of return, which provide the foundation for many commercial real estate investment principles.

The Falling U.S. Dollar

Who said investing was hard?

If you look at how the financial markets have behaved over the past six months, it seems like there is a pretty simple way to make money: buy stocks and commodities and sell the dollar. I'm being a bit glib, of course. But the dollar continues to weaken against the euro, yen and a basket of other currencies as stocks and commodities such as oil, gold and silver keep rallying.

Read further here: http://money.cnn.com/2009/09/09/markets/thebuzz/index.htm?postversion=2009090914