Swoop for Advisors’ Post

In a recent panel titled "State of the Real Estate Market," featuring Frederick McDonald, Jr., MRICS MRICS, Governor of the Mortgage Bankers Association of New York (MBA of NY) alongside experts; Bob Smith MAI, CRE, FRICS MAI, CRE, FRICS Apple Bank, Michael Pratico, Jr., CCIM, AI-GRS, MRICS Jr., CCIM, AI-GRS, MRICS Columbia Bank, Joseph Iorizzo Webster Bank and Moderated by Stephen Buschbom Trepp, Inc. valuable insights were exchanged on current trends and challenges in commercial real estate lending. The panel explored key factors influencing the valuation and management of real estate portfolios, emphasizing the importance of navigating regulatory scrutiny and market uncertainty. Discussions highlighted the evolving office market, the rise of data-driven appraisal strategies, and the complex dynamics of multi-family and hospitality investments. Frederick McDonald, Jr., MRICS emphasized the importance of communication and collaboration between lenders, appraisers, and regulators to maintain a strong understanding of the market. The panelists also shed light on innovative approaches like predictive analytics and stress testing to anticipate future market movements. They concluded with a cautiously optimistic outlook, encouraging industry professionals to remain adaptable and conservative while harnessing data to make informed decisions.

📣 Major shifts observed in commercial real estate finance landscape! As the market continues to evolve post-pandemic, investors and lenders are adapting their strategies to seek greater returns and manage risk. Recent trends suggest increased interest in alternative property types, like data centers and industrial assets, while multifamily and office sectors undergo significant transformation. 💼 🌟 Key Takeaway: This dynamic environment presents ripe opportunities for commercial mortgage brokers to help clients navigate unique financing challenges and capitalize on emerging trends. Stay competitive by staying informed! 🚀 #CommercialRealEstate #CommercialMortgageBroker #RealEstateFinance #PostPandemicInvestments #Opportunities

Thoughtful post Greg Friedman. No question that liquidity is coming out of the system from traditional sources (e.g. local and community banks). My guess, however, is that this could be a huge opportunity for private credit funds focused on real estate much in the same way that private debt funds focused on SMEs have (and remain) huge beneficiaries from the increased capital requirements imposed by regulators on the large banks post Lehman. Regulators likely will want to move more of the real estate "credit risk" to the private markets. As painful as this is, it could be a great opportunity for real estate credit funds to lend to and acquire assets at once in a lifetime type valuations or entry points.

Is this the calm before the storm or the calm after the storm? Commercial real estate and regional banks haven't faced challenges like those experienced over the last 24 months since the Global Financial Crisis, making it challenging for experts to accurately assess the current market. Banks' reluctance to mark to market their commercial real estate loans adds further uncertainty. Despite a record amount of liquidity on the sidelines, the average consumer is grappling with the effects of higher inflation. While the "excessive" commercial real estate loan exposure poses significant risks to banks, it is ultimately the consumer who will determine whether this is the calm before or after the storm. Consumers drive 70% of U.S. economic activity, and their struggles could lead to a dramatic decrease in the number of banks over the next five years. As consumers navigate today's ongoing challenges, I wish everyone a Happy 4th of July, and long live the American Consumer! Peachtree Group Peachtree Group Credit Peachtree Group Hospitality Management Jatin Desai Daniel Siegel Jared Schlosser Michael Ritz Brent LeBlanc Becki Cohen Suzannah Cavanaugh The Real Deal CoStar News CoStar Group #banks #cre #distresseddebt #commercialrealestate https://lnkd.in/gXenC3yt

Interesting article and stats on the worrisome state of the CRE markets. If you're a law firm, talk to us about how to pivot your focus to commercial. If you're a fund, talk to us about our integrative approach to managing defaults on commercial assets with our stellar nationwide attorney network, ninja servicing oversight crew, and innovative technology solution. "commercial property prices fell by 7 percent over the past year and by 21 percent since their March 2022 peak. It should not be surprising that the total value of delinquent loans tied to commercial properties such as malls, offices and industrial units was estimated at a whopping $24.3 billion last year, more than double the $11.2 billion registered in 2022. According to data firm MSCI, meanwhile, more than $38 billion of US office buildings are now threatened by defaults, foreclosures or other forms of distress—the highest amount since the fourth quarter of 2012. And the Mortgage Bankers Association’s (MBA’s) “2023 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes”, published in mid-February, found that 20 percent ($929 billion) of the $4.7 trillion of outstanding commercial mortgages held by lenders and investors will mature in 2024, a 28-percent increase from the $729 billion that matured in 2023." #marketoutlook https://lnkd.in/e7ANBEBJ

📊 CoreLogic Monthly Housing Chart Highlights - June 📊 🏠 National Rents: Steady at 8.5% annual growth, with regional rents rising to 6.9% and capital city rent values slowing to 9.1%. 💰 Gross Rental Yields: Increased to 3.75%, the highest since October 2019. This could impact highly leveraged investors. 🔨 Dwelling Approvals: Slight decrease in April, with a drop in detached housing approvals but a rise in multi-unit approvals. 📈 Home Lending: Value rose by 4.8% in April, driven mainly by owner-occupier finance. 🏦 Investor Finance: 37.0% of new mortgage lending in April, the highest level since May 2017. Understanding these trends is crucial for making informed investment decisions. Contact us for tailored advice and insights. #PropertyMarket #RealEstate #Investment #HousingTrends #CoreLogic #RentalYields #HomeLending #InvestorFinance #DMCPropertyAdvisory

The Federal Reserve just cut interest rates by 50 basis points and we expect more to come How can you take advantage? With the Fed reducing rates for the first time since 2020, this is a prime moment for investors like us. Here’s what this means for you: 🟢 𝐋𝐨𝐰𝐞𝐫 𝐁𝐨𝐫𝐫𝐨𝐰𝐢𝐧𝐠 𝐂𝐨𝐬𝐭𝐬 ➡️ Even a small rate cut can significantly boost returns on large investments. 🟢 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 ➡️ Lower interest rates mean reduced monthly mortgage payments. This leads to higher profitability and potentially larger payouts. 🟢 𝐍𝐞𝐰 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 ➡️ Lower rates make refinancing and new acquisitions more cost-effective.  Use this to expand your portfolio or enhance current investments. 🟢 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐢𝐧𝐠 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐏𝐫𝐢𝐜𝐞𝐬 ➡️ When rates went up, property prices went down Guess what is going to happen when rates go back down? If you’ve been on the fence about making your next move in real estate, now is your window. Let’s talk about the great deals that have come to the market and why you should seize the opportunities while they last: https://lnkd.in/gtfz_Xqa P.S. Here I am on stage at Rod Khleif’s multifamily meeting in Sarasota, sharing my journey and the key strategies that have helped me succeed in real estate investing.

🤔 Are you ready to learn everything about one topic from someone who has mastered it? That's where our Resident Experts come in! Our Resident Experts are the “been-there, done-that, got the t-shirt” authorities in their skillset. Beyond that expertise, they live our mission of positively impacting real estate investors. 👋 Meet our Finance Expert, Aaron Chapman - SecurityNational Mortgage Company! If you've been to an event and heard Aaron speak, it's.... colorful, 𝗯𝘂𝘁 he 𝙠𝙣𝙤𝙬𝙨 his stuff when it comes to finance. You'll see him on our Think Realty Plus workshops, at Think Realty events, and writing articles for our magazine! Many speak on long term leverage as being a hedge against inflation, but no one puts numbers to it. Not only does Aaron discuss the numbers in the presentation, but you will be provided the calculator. Learn how to calculate the effects of inflation on long term debt with Resident Expert Aaron Chapman ➡️ https://rpb.li/Lew2pb Find our more about SecurityNational Mortgage Company and contact Aaron ➡️ https://rpb.li/rMpE #finance #residentexpert #thinkrealtyplus #wethinkrealty

🏡💥 Seeing 25 competing offers on a house can be intimidating, but it's also a sign of high demand in real estate. While it may drive up prices, buying sooner rather than later can lead to significant appreciation gains. This is a smart way to hedge against inflation and build wealth. My client won this home, showing that with the right team and tactics, you can succeed despite the competition! #BrettHomeLoans #FocusedonYou #DirectorsMortgage #RealEstateWins

There are so many details to be factored answering this question in article below. Real Estate is not a new business, residential real estate is trading and price, location, condition of home, interest rates, economy, supply and demand all lend to the results. In a world of complexities, risks and interconnectivity it is not as easy as it once was to assess. However if you understand how to interpret the data and or work with your trusted advisors whether they are realtors, lenders, investors, those who eat sleep and breath this industry, they can be there to advise. Keep in mind most wealth is built through real estate, and homework due diligence allows you to make educated decisions. #wealthrealestate #realestatemarkets #canadarealestate