FIRE Capital’s Post

Many CRE CMBS investors are facing challenges across various asset classes. In hospitality, we’re seeing clients who received lender relief during COVID-19 now seeking additional support. Depending on the market, some properties haven’t fully recovered, often due to impending PIP obligations and looming loan maturities. Bringing in another equity partner could be a solution, but lender approval is necessary. We can assist with this process. Multifamily asset investors are also grappling with upcoming maturities, rising insurance costs, low vacancy rates, and higher interest rates, making refinancing difficult. Reach out to us—we’re here to help. For CRE office property investors, there’s been a surge in demand for DPOs or assistance with transitioning properties back to lenders. If you’re considering transitioning the property, we can facilitate the process, starting with appointing a receiver and working cooperatively with the lender. We ensure careful attention to loan covenants to avoid triggering recourse. No matter your CMBS loan situation, we’re here to help you navigate through it.

Higher interest rates are behind us and more deals will get done in 2024 -– that’s the word coming out of the Mortgage Bankers Association's recent Commercial/Multifamily Finance Convention & Expo. As noted in this Connect CRE story, Adam Finkel, CCIM, co-founder of Tower Capital says that despite underwriting challenges, there is a strong desire for borrowers and lenders to transact. He also noted that: --CRE lending volume will increase moderately in 2024. --Underwriting challenges will persist as the industry continues to find its new normal on pricing discover, cap rates, rents and other transaction measures. Check out the video for more, including insights from David Sotolov of AllianceBernstein, Jonathan Lee of Colliers and Joe Derhake of Partner Engineering & Science, Inc. #crefinance #multifamilyinvesting #multifamilyrealestate #MBACREF24 https://lnkd.in/gJfywxBx

🚨 The latest FDIC data reveals that multifamily loan delinquencies have surged by 51% in the past quarter, reaching their highest level in 11 years. With supply outpacing demand for 11 straight quarters, vacancy rates are rising, putting pressure on property values and transactions. For those of us active in today’s market, these challenges may come as no surprise—many are likely seeing the impact in their own portfolios. But where there’s distress, there’s often opportunity! As we navigate these market shifts, strategic decision-making is more crucial than ever. Whether you're looking to sell, buy, or restructure, understanding the evolving landscape is key to staying ahead. Full Article - https://lnkd.in/evctrJxB

https://lnkd.in/eqwH7j4G"🚨Distressed loans in the multifamily market are on the rise, with special servicers and banks stepping in to mitigate the impact. As delinquency rates continue to climb, it's important for investors to stay informed and adapt their strategies accordingly. 💰💼 Stay ahead of the curve and navigate these turbulent times with expert insights from the latest report on multifamily delinquencies. 💡Don't miss out on valuable opportunities – read more at the link below. #multifamily #distressedloans #specialservicers #banking #realestate #investing"

When deciding between a home equity loan and a home equity line of credit (HELOC), individuals should carefully assess their financial requirements, preferences, and circumstances. Home equity loans offer a one-time disbursement with fixed payments, while HELOCs provide flexibility through access to funds as needed with variable payment structures. It is crucial for homeowners to thoroughly evaluate the terms, associated costs, and repayment options of each borrowing method before committing to a choice. Seeking guidance from a financial advisor or mortgage expert can assist in making an informed decision aligned with individual financial goals. For further assistance in navigating real estate decisions and achieving property-related aspirations, interested parties are encouraged to connect for personalized support. #realestateadvice #financialplanning #propertyinvestment #homeownership #mortgagetips #financialguidance Crystal Sarchiapone, REALTOR® Keller Williams Legacy 1104 Kenilworth Dr., Suite 400 Towson, MD 21204 crystalsarchiapone@kw.com 📱 (c) 443.652.4742 ☎ (o) 443.660.9229

If this news break is to be believed, what they are stating in here makes a lot of sense. "Lenders would have to independently verify financial information related to borrowers for apartment complexes and other multifamily properties" Keep in mind, we are not talking about $300K loans, we are talking about $30 million or $300 Million-dollar loans, as an example. "Additionally, lenders could face tougher requirements for confirming whether a property borrower has adequate cash and verifying their source of funds, according to the report." The second one above we talk about all the time - larger commercial borrowers and how their net worth is documented and especially their liquid assets are regularly a topic of discussion, and the current requirements leave much to be desired, at times from a credit risk perspective.... we shall see what they really announce here.... Definitely something to watch! Pivot Financial LLC https://lnkd.in/g_qAG-Cb

Proud to share my newly published working white paper co-authored with Tensie Whelan titled Green Finance Innovation: How Mortgage Lenders Can Drive NYC Building Decarbonization. We lay out some of the risks and opportunities for the mortgage banking industry as Local Law 97 kicks in and scope 3 carbon disclosure requirements grow globally. We see banks and mortgage lenders as leaders who can build a thriving green mortgage industry and bring innovative finance to building #decarbonization. Read the paper: https://lnkd.in/erAqQdPM

The #1 reason I don't agree with lenders moving the goal posts… Here’s why: 👇… 🪝 It’s just their way of hooking you in… but in reality they don’t end up delivering on what they said they would do.. For example, the number of times I have seen lenders stating they can provide X% funds…when in reality they end up providing considerably less. I had a real example of this last week when I had a developer come to me at their wits end after several months of being bounced from lender to lender. They thought they had found a lender that said they would provide 75% of the funds but at the very last minute only offered them 60% of the funds - NO MATERIAL CHANGE to the proposal or the borrower. The lender had just reduced the gearing for no substantial reason. This has been a huge problem recently with lenders retracting their gearing (funding) levels at the last minute for both the initial funding to do the project but also at the refinance / exit stage. The problem I have witnessed though, is that the lenders aren’t being upfront about this. Instead, they have allowed developers to pay for sites visits, valuations, made them wait weeks (if not months) to go through credit approval… Only for them to then drop the LTV/LTGDV funding and change the rates 🤦 This leaves several consequences for the developers : 🚫 Erosion of borrower confidence 🚫 Loss of trust in the lender / intermediaries 🚫 Costs to the developer (especially if they have got existing borrowings) 🚫 Time delays 🚫 Losing the site altogether I cannot stress enough to people - ‼️ HAVING A DIP (decision in principle) FROM A LENDER MEANS NOTHING It’s frustrating as there are so many amazing true lenders out there that CAN & WILL provide the funding. This is why we choose to only work with lenders who have a history of providing certainty of terms and actually have the funds, so get in touch if you want to avoid ‘credit creep’ and get the funds you need 📲 ❓Has a lender ever moved the goal posts on a project of yours? www.cbscapital.co.uk #construction #property #funding #cbscapital #lenders #stopmovingthegoalposts #propertydeveloper

MF CRE is owned buy PE, VC, Pension or Insurers, all of which play hot potato with one another via the ebb and flows of their respective overall capital risk. The future will be interesting to see just exactly how this group extracts relative value from this space!

Fed Rate Cut - What effects does the rate cut have on real estate and other sectors? The Federal Reserve has just made a bold move by cutting its benchmark interest rate by 0.50%, the first cut in four years. This brings the rate down to a range of 4.75% to 5%. Share your thoughts in the comments - what you would add as a potential opportunity or insight with the recent interest rate cut? 1.     Reduced Borrowing Costs: A prime opportunity for those looking to secure new loans. 2.     Refinancing Opportunities: Are you a property owner seeking to lower interest costs and unlock additional capital? Take advantage of this chance to refinance. 3.     Could the rate cut lead to some cap rate progression over the next year? psst.... We're here to assist you with new loans or refinancing options. Check out the link below. #GrowWithPetra #RealEstate #FedRateCut https://lnkd.in/ehqtr7rD