Thursday, January 24, 2008

Bush & Co reach deal on Stimulus Plan

The Bush administration and House lawmakers announced agreement on an economic stimulus package that would distribute rebate checks to 117 million families and give businesses incentives to invest in equipment.

``The stimulus package will put money in the hands of hardworking Americans,'' House Speaker Nancy Pelosi said at a press conference with House Republican Leader John Boehner and Treasury Secretary Henry Paulson at the Capitol.

Lawmakers are racing to enact a stimulus measure to try to counter escalating risks of a recession. The Federal Reserve this week made an emergency cut in its benchmark overnight lending rate, lowering it three-quarters of a point to 3.5 percent.

President George W. Bush, in a statement at the White House, said the U.S. economy faces short-term disruptions in the housing market and rising energy prices.

``The country needs this boost to the economy now,'' Bush said. The agreement will result in ``higher consumer spending and increased business investment this year.''

Under the plan, individuals would receive rebates of up to $600 and couples could receive $1,200, plus $300 per child, Paulson said. Rebates would be phased out for individuals earning more than $75,000 and couples earning more than $150,000. Individuals must earn at least $3,000 to get a $300 rebate.

Paulson said the rebate checks may be mailed 60 days after the proposal becomes law, possibly in May.

The accord also seeks to address the growing number of housing foreclosures by including a provision allowing Fannie Mae and Freddie Mac, the largest U.S. mortgage finance companies, to temporarily buy mortgages of as much as $729,750, exceeding a $417,000 federal limit.
Some lawmakers protested that the measure doesn't include more spending. Democrats sought to extend unemployment benefits or provide additional food-stamp aid.

Representative Charles Rangel, a New York Democrat who heads the tax-writing House Ways and Means Committee, said he did ``not understand, and cannot accept'' the dropping of an extension of unemployment benefits from the final stimulus package.

``These are the families we need to protect in times of recession as they struggle to put food on their tables, clothes on their backs and keep a roof over their heads,'' Rangel said in a statement. Rangel added, however, that he wouldn't block the legislation from ``moving forward.''

Business Incentives
Two business incentives were included in the measure. One would allow large businesses to deduct more of the price of new equipment they purchase this year. Small businesses would be allowed to deduct twice the current limit of $112,000 for new equipment purchases.
Senate Democratic leaders, while praising the House agreement today, said the measure will be amended in that chamber.

Senate Republican Leader Mitch McConnell called for quick action.

``We can all agree that we must act soon if we want to provide timely relief to American families and job creators, and boost our fundamentally strong economy,'' he said in a prepared statement.

Fixed-rate mortgages at lowest in almost four years

The 30-year fixed-rate mortgage averaged 5.48% for the week ending Jan. 24, down from 5.69% last week, according to Freddie Mac's weekly survey. The mortgage averaged 6.25% a year ago; the 30-year hasn't been lower since the week ending March 25, 2004, when it averaged 5.40%.

The 15-year fixed-rate mortgage fell to an average 4.95% this week, compared with 5.21% last week. The mortgage averaged 5.98% a year ago; it hasn't been lower since the week ending April 1, 2004, when it averaged 4.84%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.13% this week, down from last week's 5.40% average. The ARM averaged 6.00% a year ago; it hasn't been lower since June 30, 2005, when it averaged 5.06%.

And 1-year Treasury-indexed ARMs averaged 4.99% this week, down from last week's 5.26%. The ARM averaged 5.49% a year ago; it hasn't been lower since Oct. 27, 2005, when it averaged 4.91%.

To obtain the rates, the 30- and 15-year fixed-rate mortgages, as well as the 5-year ARM required payment of an average 0.4 point, while the 1-year ARM required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

The Freddie Mac survey covers conforming loans, mortgages smaller than the $417,000 limit. A separate survey released by Bankrate.com showed that the 30-year fixed-rate jumbo loan, for mortgages above that limit, averaged 6.85% this week, down from 6.98% last week.

"Economic news released last week confirmed the weak condition of the housing market. Housing starts fell further in December to 1.006 million units, the slowest pace since May 1991," said Frank Nothaft, Freddie Mac chief economist, in a news release.

"For the year as a whole, housing starts dropped nearly 25%, from 2006's level. This was the largest annual decline since 1980. New permits issued also fell to the lowest level since March 1993."

Thursday, December 20, 2007

Bear Stearns quarterly mortgage write-down grows to $1.9 bln; bonuses scotched

Confirming press reports earlier this week, Bear Stearns said members of the executive committee will not receive any bonuses for 2007.

"We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses," Chairman James Cayne said in a statement.

The company said it wrote down about $1.9 billion in mortgage inventory net of hedges, which reduced fourth-quarter earnings by $8.21 a share. Its previous write-down estimate was $1.2 billion.

Bear Stearns said fixed-income net revenue was negative $1.5 billion in the fourth quarter.
"The continued repricing of credit risk and the severe dislocation in the structured products market led to illiquidity in the fixed-income markets, lower levels of client activity across the fixed-income sector and a significant revaluation of mortgage inventory," Bear Stearns said in the earnings release.

For the fourth quarter, the company had total net revenue of negative $379 million, compared with net revenue of $2.41 billion a year earlier.

"The results, to us, seem to imply that the problems at Bear are not contained to mortgages and more broad based than seen elsewhere," Mike Mayo, an analyst at Deutsche Bank, wrote in a note to investors.

Bear's fixed income business saw weakness beyond mortgages, the firm's equities business also declined, despite strong overseas performance, and its prime brokerage business also lost ground, Mayo noted.

Shares of Bear Stearns were mixed during morning trading on Thursday. The stock was recently down five cents at $90.55.

Bear Stearns' results cap off a busy week for earnings from the big brokers, which have been buffeted by losses on mortgage and fixed-income assets

Florida Commercial Lender continues to strive to secure funding for thier clients.

Tuesday, December 18, 2007

Friday, November 16, 2007

Mysteries of Hard Money Commercial Loans revealed!

Five Stars Mortgage has posted a new article that reveals the mysteries of the hard money commercial loan!

Finally you can understand the history and future of where this loan program is headed. Below is an exceprt from the article:

"
Mortgage Articles
We offer bad credit mortgage and other mortgage loan facilities, home financing and 80/20 loan in Florida, Altamonte Springs, Apopka, Casselberry, DeLand, Deltona and Edgewater. We also offer other mortgage loan facilities, home financing and 80/20 loan in Kissimmee, Lake Mary, Longwood, Maitland, Ocoee, Ocala, Orange City, Orlando and Tampa.
Mysteries of Hard Money Commercial Loans revealed!
As mortgage brokers further infultrate the commercial market we are sure to see an explosion of hard money commercial loans becoming available to more commercial investors whos only access to commercial money in the past may have been their local bank.
In the lending industry the term hard money is thrown around alot. To understand what hard money is today we need to look at where hard money loans came from and how they have evolved over time.
Where did hard money come from?
Hard Money Loans in general have traditionally been only for investors seeking to purchase real estate quickly and with little documentation. Investors by nature are much more educated about their financial situations and options since they are utitlizing their sources and going through the lending process much more frequently than the average home owner.
Investors didn't want to have to go through a 30-45 loan process every time they purchased a new investment property. Often times their investment projects were time sensitive and needed to be quickly financed or they would lose the deal. Enter Hard Money.
Historically hard money was meant to lend money to anyone based only on the equity position of the property. Hard money commercial loans and residential loans were both lent based on the assumption that the lender would only provide 60-65% of the value of a property. They would not be securing their money against the credit worthinessof the borrower, just the equity of the property. This meant no more lengthy credit underwriting bank reviews. Interest rates are much higher with a hard money loan than with traditional financing, but investors are more than willing to pay the higher interest rates and ponits associated with acquiring hard money commercial or residential loans in exchange for not being declined due to credit, job, or income issues.
Commercial Hard Money Loans Evolve
Hard Money Loans filled a huge gap in the lending and banking industry. Investors were now able to obtain short term financing very quickly to purchase their properties.
Hard money also became very popular with residential lending over time. The average home owner through mortgage brokers gained easy access to hard money loans which was adventageous to them for several reasons as well. A Hard money loan became an option for a home owner who was falling behind in their mortgage payments. Traditional banks and lenders wanted nothing to do with someone that was not able to make their monthly mortgage payments. Often times these people only needed a short term reprieve to overcome some challenge they had been faced with in their lives.
The Hard Money loan allowed the home owner to refinance and catch up on mortgage payments. Their payments inevitably rose even higher due to the hard money rates, but the hard money loan also allowed the home owner to cash out up to 65-70% of the value of their home! This gave the home owner the power to pay off other debts, catch up on their mortgage history and then refinance again once they were in a better position to more traditional loan options.
Whats in it for the hard money commercial lender?
The lender has several incentives for their risks. The most obvious is the interest the investor makes on his money. It is not uncommon for a hard money lender to command anywhere from 10.99% all they way up to 18% interest on their loans depending on the risk and property types.
The second incentive is the points that a hard money lender collects for offering you their money. The lender often collects anywhere from 1-8% of the total loan amount as their fee for offering you such high risk money. In addition to these upfront fee's and the high interest rates, the lender may also impose a prepayment penalty ensuring that they get their interest payments over a 6-12 month period. SHould the client refinance or sell the lender is able to collect even more fee's for using their money.
The final benefit is the property itself. Often times the lender does research on the property and determines their risk by their ability to make money should they take back the property from the client. If the client falls behind in their payments the lender would be able to take ownership for example of the mulitfamily apartment complex and make money on the net operating income the property would offer. If the return is not high enough for them they are also able to sell at a discount. Remember they are only lending 65% of the value of the property so if they take it back they can always sell quickly at a discount in order to make quick money on the capital gains of the sale.
Hard money commercial loans today
Hard Money has truly evolved. With the fallout of the credit markets in 2007 hard money has a new face. In both residential and commercial markets, hard money seems to have replaced a void left by the subprime market. Subprime is a whole other article but let us just agree that subprime was not only for bad credit buyers and therefore now that hard money is takign that market space neither is hard money.
Hard money loans now can accomidate a wide variety of loan scenarios. It is no longer just for the foreclosure bailout croud or bad credit investors. Hard Money loans cover anything outside the normal local bankign guidelines. Hard Money lender are now allow CLTV's up to 90%! A commercial investor may only need to bring 10% of the purchase price and can still obtain a hard money loan. This means not showing tax returns, not waiting for lenghty underwriting processes, and getting their money fast. "

The full article on Hard Money Commercial Loans can be found at: http://www.fivestarsmortgage.com/mortgage-articles/commercial-hard-money/.

Thursday, November 1, 2007

Asset-backed commercial paper falls for 12th week

WASHINGTON (MarketWatch) -- The outstanding level of asset-backed commercial paper fell for the 12th straight week, the Federal Reserve reported Thursday.
Asset-backed paper dropped by $9 billion, or 1%, to $875 billion in the week ending Wednesday.
Asset-backed paper, the short-term IOUs backed by assets such as mortgages, credit cards or other receivables, has plunged by $308 billion, or 26%, since the crisis of confidence in credit began in early August.

The collapse of the market has prompted mortgage companies and others who relied on the commercial paper market to seek alterntiave sources of funding, mainly by tapping existing credit lines at large banks. The banks, in turn, have sought alternative funding for their special investment vehicles.

Citigroup's shares were lower on Thursday on reports it needed to raise $30 billion in capital, perhaps by cutting the dividend. Meanwhile, the larger market for commercial paper continued to recover, rising $9.9 billion, or 0.5%, to $1.88 trillion.

Paper issued by financial firms surged by $28.6 billion, or 3.6%, to $824 billion. Paper issued by nonfinancial companies, on the other hand, dropped by $11.7 billion, or 5.2%, to $236 billion

Hard Money Commercial Loans in Arizona are being offered by Florida based Commercial Mortgage Lender Five Stars Mortgage.

Tuesday, October 30, 2007

Greenspan Says China's Stock-Market Bubble May Burst

Former Federal Reserve Chairman Alan Greenspan said China's stock market is a speculative bubble that will burst.

Asked if China was in a state of ``irrational exuberance,'' a phrase Greenspan made famous in 1996, the former chairman said, ``I think so,'' speaking to a conference of insurance executives in Boston today. ``When you don't expect it, it breaks,'' Greenspan said of the bubble.
His comments reprise remarks from May, when Greenspan said he was concerned Chinese equities might undergo a ``dramatic contraction'' after its main stock index at the time had jumped more than 90 percent since the start of the year.

Greenspan's latest words of concern come at a time when investors are increasing bets on Chinese equities. Yesterday, PetroChina Co. and Alibaba.com Ltd. sold stock valued at more than $10 billion.

PetroChina, the world's second-largest company by market value, raised 66.8 billion yuan ($8.9 billion) in the biggest stock sale this year. Alibaba, the operator of China's largest trading Web site for companies, sold $1.5 billion of shares in the second-biggest initial public offering of an Internet company after Google Inc., said two people with knowledge of the matter.
China's benchmark CSI 300 Index has surged 170 percent this year as the country's households invest more of their $2.3 trillion of savings in equities. The rally has given China more of the world's 10 largest companies than the U.S. for the first time and prompted billionaire investor Warren Buffett to warn that prices have risen too fast.

China's stock market value is $3.7 trillion, compared with $18.7 trillion for the U.S.
``It's easy to be carried away in the stock market when things are going very well,'' Buffett said Oct. 24. ``We at Berkshire never buy stocks when we see prices soaring.''

Greenspan also said the view of many analysts that the U.S. current-account deficit will cause further declines in the dollar isn't valid.

``We are likely to see a long-term erosion of the dollar,'' in part because ``others are doing much better,'' he said.

Greenspan said Oct. 24 that the dollar's decline to a record against the euro also reflects on a widening interest- rate gap between the U.S. and the euro region.

Hard Money Commmercial Loans are still availabe utilizing US backed securities with Five Stars Mortgage.

Thursday, October 18, 2007

The level of outstanding asset-backed commercial paper fell by $11 billion, or 1.2%, to $888.3 billion in the week ending Wednesday, the Federal Reserve reported Thursday. Asset-backed paper has fallen for 10 straight weeks, dropping by $295 billion, or 25%.

Five Stars Mortgage offers $17.5 Million dollar commercial acquisition and development project to build Sheratin Hotel.

The decline in the market has squeezed mortgage lenders of their financing. On Monday, major banks announced a special fund to help themselves refinance the securities that have been locked out of the paper market. In the most recent week, the overall commercial paper market saw outstandings rise by $1.3 billion, or 0.1%, to $1.87 trillion

Visit Five Stars Mortgage Commercial Lending on the web at http://www.fivestarsmortgage.com/commercial-mortgage/

Tuesday, October 9, 2007

PNC Completes ARCS Commercial Mortgage Acquisition

The PNC Financial Services Group, Inc. (NYSE: PNC) announced today that it has completed the previously announced acquisition of Calabasas Hills, California-based ARCS Commercial Mortgage.

The PNC Financial Services Group, Inc. (http://www.pnc.com/) is one of the nation's largest diversified financial services organizations providing retail and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.

Florida Commercial Loan provider Five Stars Mortgage, LLC continues to provide top notch service and rates to commercial buyers in Florida and Nationwide.

Visit them on the web at http://www.fivestarsmortgage.com

Sunday, September 30, 2007

First In-Depth Assessment of Commercial Real Estate Job

Results from the first SelectLeaders Job Barometer report, compiled by SelectLeaders, an online job board for the commercial real estate industry, in conjunction with Cornell University's Program in Real Estate, forecast solid hiring and compensation growth, but also reveal worrisome trends.The findings were reported by Anthony J. LoPinto, CEO of Equinox Partners, a retained executive search firm, and founder of SelectLeaders, and Dr. David Funk, director of the Cornell University Program in Real Estate.

"Hiring and compensation provide a barometer for trends in the commercial real estate industry, as well as for the U.S. economic outlook," Mr. LoPinto says.Among the notable findings of the SelectLeaders Job Barometer are: -- Job postings for the commercial real estate industry have soared by 35 percent during the first quarter of 2007. -- 66 percent of senior executives expect compensation to increase in the next six months, and over 60 percent of industry employers expect to increase hiring over the same period. -- The Southeast region, led by the Atlanta and Charlotte markets, had the fastest job growth of any region, experiencing a 60 percent increase in job postings in the first quarter, and, surprisingly, the Midwest region, led by the Chicago market, experienced a 43 percent increase in job postings, making it second in job growth nationally.

-- New York and California are the hottest areas for real estate finance jobs, but New York attracts twice as many applicants as California, which has led to a talent shortage on the West Coast.

-- Despite the fact that demand is growing for asset and property managers, the majority of job candidates seek the highly desirable"deal-making" positions that involve acquisitions, development, capital raising and investment banking."Candidates should pay close attention to regional and sector opportunities," advises Dr. Funk. "If the candidates are willing to pursue prospects in other states and sectors, they will broaden their options as well as their resumes, and with multi-sector jobs accounting for 46 percent of all postings nationwide, cross-sector experience makes a candidate extremely appealing."According to Mr. LoPinto, there are several reasons why the industry is currently experiencing a shortage of talent. "One of the major reasons is 'The Brain Drain,' or lack of up-and-coming talent caused by few entering the real estate industry during the bust of the '90's, coupled with the baby boomers exiting the business and heading to the beach. Also, there has been an enormous influx of capital into real estate, fueling tremendous growth, and a corresponding demand for talent."Dr. Funk adds, "With more companies going public, and greater institutionalization in the industry, the bar has been raised on the caliber and qualifications for real estate job candidates.""Notwithstanding the residential sector's less optimistic viewpoint, which the study concludes is sector-specific, the industry is quite optimistic," observes Mr. LoPinto."The question remains as to whether the hiring and compensation bubble will get so big that it will burst, or if the current optimism is indicative of a lot more runway in the current economy," notes Dr. Funk.About The SelectLeaders Job BarometerThe SelectLeaders Job Barometer utilized data collected from three sources: a comprehensive sample from 8 primary job boards of all online job postings for professional commercial real estate positions, surveys among senior C-Suite and middle management in commercial real estate companies, and 74,853 resumes from job applicants submitted on the SelectLeaders site, as well as the SelectLeaders Job Network, comprising 11 real estate professional organization career centers.

Five Stars Mortgage are Florida Commercial Loan specialists prepared to offer a wide range of commercial hard money solutions.

Tuesday, September 18, 2007

25 or 50?

Financial markets are counting on Bernanke to use his creativity and guile to chart a course for the central bank that will reassure markets pleading for a rate cut without spooking investors that a recession is at hand.

'While the arguments favoring a bold move are compelling, we believe the chances of a 25 basis point cut carry a higher probability.'

The Fed is expected to ease policy but also take further action to signal the availability of liquidity to markets through a further reduction in its discount rate.

"These decisions are far from open-and-shut, in the minds of either the FOMC or market participants," said Jan Hatzius, chief economist at Goldman Sachs.
The meeting is the most important one that Bernanke has chaired since he took office nearly 20 months ago, Hatzius said.

Most economists think the central bank will cut by a quarter-percentage point to 5.0%, but some are attracted to the somewhat strong move of a half-percentage point.
"While the arguments favoring a bold move are compelling, we believe the chances of a 25 basis point cut carry a higher probability," said Michael Moran, chief economist at Daiwa Securities America Inc., in a note to clients.

Moran gives three reasons for a smaller move. First is concern about the appearance of the Fed being too quick to protect lenders and investors; second are doubts that the economy will weaken sharply and last is nervousness about inflation.

The August unemployment report was the only really weak economic indicator to date.
"There is no evidence that the wheels are coming off the wagon of growth so the Fed will probably only cut rates by 25 basis points," said Robert Brusca, chief economist at FAO Economics.

Bernanke told the financial markets in a speech that the Fed would pay close attention to the "timeliest" economic indicators and anecdotal reports to gauge the turmoil in credit markets on the economy.

Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi, said another argument against a half-point rate cut is the fact that the recent financial turmoil does not include stocks.
After all the volatility in the markets the last month, the Dow Jones Industrial Average last Friday was still up 7.9% year-to-date.

Rupkey said a 50 basis point cut might also set off expectations that the Fed will move by a half-point at the next FOMC meeting on Oct. 30-31.

But several economists are leaning in the direction of a half-point rate cut on Tuesday.
"The case can easily be made that a 50 basis point cut would be well justified," said Avery Shenfeld, senior economist at CIBC World Markets.

"The 25-basis point move will still leave most money market rates above where they were prior to August, including the 3-month LIBOR rate off of which most floating rates are set. It is going to take at least 50 basis points to stop the bleeding there, and likely something like 100 basis points to actually provide a more stimulative environment than existed in credit markets prior to August," Shenfeld said.

Hatzius of Goldman Sachs also thinks the Fed will cut the funds rate target by a half a percentage point.

The odd man out is Scott Anderson, senior economist at Wells Fargo Economics.
Anderson argues that the Fed should not lower the Fed funds rate, but said they will just for the "psychological effects it could have on financial markets."

"A Fed Funds cut will not bring back the U.S. housing market. A Fed Funds cut will not bring back the commercial paper market," Anderson said.

If the housing market remains depressed, the markets "will ask for another rate cut, and another, and another, and another...and then what?" he asked.

"However, our confidence in this call versus smaller moves is low," he said.
Stephen Gallagher, economist at Societe Generale, said it would be foolish to be overly confident in forecasting any particular outcome.

Five Stars Mortgage is still leading the path as the Florida Commercial Loan specialist

Friday, September 7, 2007

Barclays Says Solent Commercial Paper to Be Repaid

Barclays Plc, the U.K.'s third- biggest bank, says investors who bought commercial paper from Solent Capital Partners LLP's $4.5 billion Mainsail II Ltd. fund would be repaid in full under a restructuring proposal.

Mainsail is being forced to sell assets, including residential and commercial mortgage securities, because they aren't worth enough to support its debt. Barclays had committed to provide emergency financing to the fund run by hedge-fund manager Solent, according to a March report by Moody's Investors Service. Barclays and Solent are both based in London.

``The restructuring proposes that all commercial paper investors will be fully paid out at par at the same time when the restructuring is implemented through the provision of an additional liquidity facility underwritten by Barclays,'' according to a Mainsail statement released on the London Stock Exchange's news service today.

Companies that depend on commercial paper, which is debt due in 270 days or less, face funding shortages as investors refuse to buy paper that may be linked to U.S. subprime mortgages. Barclays said Aug. 31 that it provided a loan to a fund run by London-based Cairn Capital after the fund couldn't refinance commercial paper. Moody's said the bank also may provide emergency lending to a fund run by Geneva-based Avendis Group, which has been forced to sell assets because of a drop in value.

Barclays has proposed restructuring Mainsail's debt by creating an emergency-funding facility divided into three levels of risk, and it's in discussions to buy ``additional credit protection,'' the statement said. Barclays is talking to Mainsail's capital and mezzanine noteholders about having them buy the riskiest pieces, the statement said.

Standard & Poor's last month cut ratings on junior interests in Mainsail as much as 16 steps to CCC+ from the highest grade. The commercial paper's rating dropped three steps to A-3, the lowest short-term investment grade ranking.

Will Bowen, a spokesman for London-based Barclays, didn't immediately respond to a request for comment.
- Bloomberg

Florida Commercial Mortgage Loan provider Five Stars Mortgage offers a variety of commercial paper for their clients. Hard Money Commercial loans are becoming more and more popular.

Tuesday, August 28, 2007

Some see bargains but others warn about getting carried away

But are they being overly optimistic? After all, a typical REIT mutual-fund is down more than 7% so far this year. That makes it the worst performing domestic stock category in 2007 by a wide margin, according to Morningstar Inc.

"Opportunities for long-term investors who are underweight real estate have certainly opened in recent months," said Jim Trowbridge, co-manager of AIM Global Real Estate Fund. Bargains are relative, however. Even after this year's dismal performance, a typical REIT fund has produced an average annualized return close to 20% in the past five years. In the same amount of time, an average U.S. diversified large-cap core fund has generated only about half as much.
As a result, REIT funds aren't trading at the low end of their historic valuations. AIM's Trowbridge estimates that price-earnings ratios for the group are probably about midway between their long-term low and high valuations.

"We're seeing a disconnect now between long-term financial strength of some of these companies and how the market perceives their value," he said. "But we expect volatility to remain with us for awhile. It's probably going to continue to be a fluid situation."
In the short-term, credit worries are still a concern in real estate markets. As loan standards tighten and fewer speculators can borrow money to invest in commercial paper, some analysts caution that business-minded REIT investors could turn away in droves.
So far, the subprime meltdown has mainly spread to residential segments. David Copp, co-manager at TIAA-CREF Institutional Real Estate Fund points out that investing in commercial sectors is a lot different than investing in housing.

As a result, he doesn't expect panic among businesses tied to home buying to significantly depress commercial property markets.

"On the margins, some commercial real estate investors are highly leveraged and aren't going to be in the market looking for more properties," Copp said. "But those are mainly undercapitalized, short-term speculators."

The wild card is general macro economic conditions. If those slide faster than anticipated, commercial property demand could weaken.

Discounts to property values

A key metric with valuing real estate stocks is comparing price movements to changes in a firm's operating income. Right now, Copp estimates that those levels show a typical REIT fund's net asset value trading at about a 20% discount. That value is based on how much a portfolio would generate if liquidated on the open market today.

"After this year's sell-off, investors are essentially paying about 80 cents on every dollar for a high-quality REIT fund's underlying assets," Copp said.

Historical averages for the sector show such discounts have reached around 30% against present-day property valuations, he added. "Looking at past cycles, you might be able to buy shares of leading REITs for as low as 70 cents to 75 cents on the dollar. But that's about as low as we're used to seeing in this industry," Copp said.

That's why he believes that fund investors with underweight REIT positions according to their long-term asset allocation plans start considering wading back into the asset class.
So does Trowbridge. "This actually seems to be a pretty opportunistic point for long-term fund investors to selectively start dollar cost averaging into the market," he said.

But check your long-term asset allocation plan, Trowbridge emphasizes. "With the level of volatility in the market now, if you're overweight real estate, you might want to remain fairly cautious," he added.

Showing resilience
The sector has shown some resilience lately. When the crisis in residential lending erupted in July, the average REIT fund's tumble was roughly in line with financial stocks as a whole. But in the past month through last week, an average REIT-related fund has lost less than 1.5% in total returns, according to TrimTabs Investment Research. Stock funds as a group have dropped an average of 4%-plus.

Investors looking for a New York Hard Money Commercial Loan can still go to Five Stars Mortgage.

Sunday, August 26, 2007

Commercial Hard money Loans

Hard money comes in many varieties; one of the most common is mortgage loans especially commercial loans. Using the owner’s equity in real estate, hard money lenders generally lend up to 65% - 70% of the value of real estate property. In general, hard money mortgage loans are used for commercial purposes. However, they can also be applied to residential properties. In this instance, the loan is generally referred to by its more politically correct name: a non-conforming mortgage.

Lending criteria for hard money mortgages are fairly simple. The loan is based on the value of the ‘subject property’ – either real estate owned or about to be purchased by a borrower. If the borrower is buying property, the "value" of the real estate is defined as the actual purchase price of the property. If the borrower needs hard money for a refinance situation, the ‘value’ is determined by a written real estate appraisal. If you are looking for a hard money refinance loan, the lender will want to know when you purchased the property and what you paid for it. If you bought a property a month ago for a specific sum, the lender will be disinclined to lend you more than that purchase price.

Once you own the property for about a year, especially if you have put some money, sweat equity, or both into the property, you can get a new appraisal and get a loan based on the new, improved value of the property. This is called ‘seasoning.’ Be sure you have seasoned your property before going out for a refinance mortgage at a significantly higher value figure than what you paid for it. It is possible to obtain a refinance or Hard Money Commercial loan without the standard seasoning requirments however.

Orlando Hard Money Commercial Loan experts Five Stars Mortgage offering outstanding aggressive pricing and products.

Thursday, August 23, 2007

Commercial Paper Market Still Not Working

In a subscription article on August 21, the Wall Street Journal takes a hard look at the commercial paper market, and why many experts feel the Fed's efforts of last week have not entirely resolved the issues at hand. According to the article:"The Fed on Friday cut its discount rate by half-percentage point in an attempt to alleviate the pressure on banks that found their access to the commercial paper market shut off amid a crisis of investor confidence."

Not seeing a quick fix in site, the commercial paper market is going to be something to keep a close watch on in the months ahead. The article adds, "As the asset-backed commercial paper market continues to reel from the credit crunch that has upended confidence throughout financial markets, investors have channeled their funds into short-term Treasurys that carry a maturity of six-months or less."Here at Five Stars Mortgage, our new Hard Money Commercial Loans are designed to help you make sense of the market changes and plan for your very best long term strategy in the commercial real estate market.

California Commercial Lender Five Stars Mortgage continues to offer leading edge financing solutions Nationwide.

Wednesday, August 22, 2007

Fitch Upgrades Wachovia Bank Commercial Mortgage Trust

Fitch has upgraded Wachovia Bank Commercial Mortgage Trust, Series 2005-WHALE 5, commercial mortgage pass-through certificates, as follows: -- $7.9 million class J to 'AAA' from 'BBB+'; -- $11.3 million class K to 'AA+' from 'BBB'; -- $10.8 million class L to 'BBB+' from 'BBB-'. In addition, Fitch affirms the following classes: -- Interest-only class X-1B at 'AAA'; -- Interest-only class X-2 at 'AAA'. Classes A-1, A-2, X-1A, X-3, X-4, X-KHP1, X-KHP2, B, C, D, E, F, G, H, KHP-1, KHP-2, KHP-3, KHP-4, KHP-5, OKS, DP-1, DP-2, DP-3, and MS, and AG have been paid in full.

The upgrades are due to increased credit enhancement resulting from the repayment of two loans, Gallery at Fulton and the New Mexico Mall, since Fitch's last rating action in March 2007. As of the August 2007 distribution date, the pool's collateral balance has declined 97.7% to $30 million from $1.29 billion at issuance. Of the original 14 loans in the transaction, only the Lightstone Pool 2 remains. Fitch reviewed the servicer provided year-end (YE) 2006 operating statement analysis report for the Lightstone Pool 2 loan. Based on the loan's overall improved performance since issuance, due to repositioning efforts at both malls and renovations at the Brazos Mall, the loan maintains its investment grade credit assessment.

Five Stars Mortgage providing Apartment Building Commercial Loans throughout Florida and Nationwide today. All Florida No Doc Commercial Loans are underwritten with causion.

The YE 2006 Fitch stressed A-note debt service coverage ratio (DSCR) has improved to 2.15 times (x) from 1.53x at issuance. The loan matured on January 9, 2007 and is currently in the first of its three one-year extension options. At the time of maturity, the Brazos Mall was still undergoing renovations and both malls continue to be repositioned within their markets. The Lightstone Pool 2 loan (100%) is secured by two regional malls: the Shawnee Mall in Shawnee, OK, and the Brazos Mall in Jackson, TX. The Shawnee Mall is anchored by Sears and the Brazos Mall is anchored by JC Penney's and Sears. As of May 2007, occupancy at the Shawnee Mall is slightly down to 56% from 65% at YE 2006, but remains stable compared to 57% at issuance. As of May 2007, occupancy at the Brazos Mall has improved to 83% from 79% at YE 2006 and 73% at issuance. Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Sunday, August 19, 2007

Commercial paper market doesn't have access to new liquidity

The Fed cut the discount rate in order to bolster confidence and kick-start trading in the stock market, but it has no meaningful action on the commercial paper market, said Michael Englund, principal director and chief economist with Action Economics LLC.

"A liquidity crisis is what's underlying the commercial paper crunch," Englund said, "and [commercial paper] doesn't have access to the discount loans."

Many large industrial companies, such as Dow Jones Industrial members Caterpillar Inc. and General Electric Co, often use commercial paper to help fund customers purchasing their equipment, as well as for day-to-day operations such as payroll.

Earth-moving equipment maker Caterpillar had about $4.58 billion in commercial loan paper debt as of its most recent Securities and Exchange filing, while General Electric which makes everything from turbines to power plants, has about $69.5 billion in U.S. commercial paper debt, and another $28.5 billion in non-U.S. debt, as of June 30.

Other companies with large commercial mortgage paper debt include Deere Co. The volatility of the credit market, particularly within commercial paper, will entice lenders to raise prices on their loans, and those costs will likely be passed on to companies borrowing to make large equipment purchases.

"The problem is the debt market and how it will have a broad affect on growth, in the long-term view, and industrial equipment [prices] will naturally rise in that kind of environment until the Fed lowers the fund rate," said Rob Goodman, director of investments for Fairpoint Asset Management in Cleveland, Ohio. Meanwhile, margins can expect to be squeezed, he said.
Earlier Friday the Fed lowered the discount rate to 5.75% from 6.25% in what analysts are calling a "symbolic gesture." The discount rate is primarily used by troubled banks, and allows the federal government to control the money supply and offer stability to financial markets

Florida Commercial Loan, Florida Hard Money Comercial Loans, and bridge financing are still being offered at reasonable rates via consultant Five Stars Mortgage in Florida.

Thursday, August 16, 2007

JPMorgan CMBS Classes Downgraded

Four classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. commercial mortgage pass-through certificates, series 2004-CIBC8, have been downgraded by Standard & Poor's Ratings Services. The downgrades were as follows: class J, from BB-plus to BB; class K, from BB-minus to B-plus; class L, from B to B-minus; and class M, from B-minus to CCC-plus. S&P also upgraded two classes and affirmed the ratings on 14 classes from the same transaction. The rating agency attributed the downgrades to a $13.9 million principal loss due to the liquidation of the Parkwoods Apartments loan secured by a multifamily property in Dallas. "The special servicer is attempting to recover additional proceeds on the liquidated asset by pursuing a breach of claim against the originator and claims against the former sponsor," S&P reported.

Texas Hard Money Commercial Loans still being offered Nationwide through Five Stars Mortgage.

Tuesday, August 14, 2007

SBA breaks records in commercial financing loans

The Small Business Administration reports that the agency set records for SBA-backed commercial financing loans in fiscal 2006, with new highs in the number of loans to small businesses and their total value.

SBA Administrator Steven Preston said SBA had backed 100,197 loans worth $19.1 billion under its two primary small-business loan programs during the 12 months ending Sept. 30.
Both the number of loans and the dollar amount are single-year records for the agency, topping the previous records set in fiscal 2005, when SBA provided a net of 94,554 loans worth $18.1 billion under the same two programs. Preston said it was the sixth consecutive year of increased loan figures.

According to SBA, one-third of the loans in fiscal 2006 went to minority borrowers, 32 percent to start-up businesses, 22 percent to businesses owned by women and 21 percent to businesses located in rural areas.

Increases were recorded in loans to African Americans, Hispanics, Asian Americans and Native Americans.

“These numbers reflect the confidence American entrepreneurs have in the U.S. economy as well as in the SBA lending program that backs their loans,” Preston said. “I am thankful to our lenders and resource partners for their steadfast commitment to small businesses.”

California Commercial Loan to small businesses provided by Five Stars Mortgage are still available.

Thursday, August 9, 2007

Commercial Mortgage Firm For Sale

Blackburne & Brown Mortgage Company, Incorporated (“the Company”) is a licensed California real estate brokerage company involved primarily in the hard money commercial mortgage business.

Our traditional niche is making long term, permanent loans to borrowers who cannot qualify for a bank loan. Normally their credit is too blemished, perhaps from a divorce, or their company is not making enough money on paper to qualify at the bank. It is a good market because our borrowers have significant equity in their commercial properties, and these buildings are already standing and completed. All of our loans are first mortgages.

The company can also make bridge loans, loans to renovate existing commercial buildings, or new construction loans. Nothing in our licensing prohibits the company from making home loans in the future.

We get our lending funds from accredited and near-accredited private investors residing in California. These loans are almost always fractionalized, meaning that we will usually place 10 to 30 different private investors per loan. By raising money is smaller denominations – typically $10,000 to $50,000 each – our cost of funds is lower. The private investors in our loans own their interests as tenants-in-common with each other. The company does not guarantee these investments in any way.

Our largest single investor is Blackburne & Brown Mortgage Fund I (“the Fund”), a $26 million blind mortgage pool operated as a limited partnership. The Fund has been in existence for over 12 years and has a perfect record of no principal losses. The Fund currently pays its investors 6.375%. The Company serves as the General Partner of the Fund. The Fund can easily be increased in size if a sufficient number of good loans can be found.

The Company earns its money through two methods – loans fees of typically 2.5 points per loan and from loan servicing fee. The Company earns on average a whopping 190 basis points on a portfolio of around $45 million. Therefore the company enjoys a passive loan servicing revenue of $800,000 or so per year, plus management fees on any REO’s and a management fee of one-half percent on the Fund.

Florida commercial loan and florida hard money loans are available to all business in the area.

Wednesday, August 8, 2007

Broker Commercial Large Learn Loan

The rate of interest however may be a minor higher for such corporate family. This can be in the form of occupational equipment or stock, subjective or further properties, busy technology, or any skill with a substantial value. Weeks go by, opportunities are lost, and still the outcome remains unknown. Business relations be sure to do late disbursement, arrears, recompense nonattendance or district patio judgments against their famous person are approved commercial commercial loans if they have a settlement plan in home. So a business persona can take commercial professional loans for procurement a shop, roadhouse, pub, physical condition lavatory, bar, retail passage etc. So loans are to be expected part of any corporate, remarkably if commercial purpose is elaborate. Compare different lenders much for individual interest tax to find out a apposite lender. When this happens, the applicant has no new high-quality than to commencement the mind-numbing commercial home equity loan loan approval process over yet again. US commercial bridging loan use guidelines similar to those used when concern for a suburban loan. The lender takes the hopeful information, runs it assumed their guidelines and cliché and after in the making many donkey's years, a evaluation is made to each certify or deny the loan. If you've ever everyday for a loan, you're usual with the mountain of form-filling you are required to complete during the method.

Whats the most economical way to secure a US Commercial Mortgage' Work with a mortgage dealer who dedicate yourself to in this area. Commercial commercial loans are specifically crafted loans that are as long as to occupational individuals who are mien for ordering some property for commercial use. So you had better have a fit and persuasive professional plan to show as to where and how you are obtainable to finance the loan expanse and how you are to settle up the loan. The property must have an adequate appraised value. It is evenhandedness in the property placed as precautions that determines the loan sum. The applicant must be responsible for a good intelligence for needing the loan. But even the most cautiously ready and well-documented commercial loan solicitation can be fall.

Usually Commercial business loan are offered against the business general public commercial or domestic property as huge amount is at winnings. The way to achieve this goal is to work with an experienced and upright US commercial advance negotiator. If denied, the applicant has to begin the route all over once again. So if you chose to recompense the loan in larger duration of say 25 an age, you can save lot of change per week towards the loan installments. Generally are complimentary up to 75 of the value of the property as Commercial commercial loan.
If you are allowed as bad prestige, still commercial occupational loans are vacant to you. A broker takes your one completed commercial debt use and bow to it to many different commercial lenders, all at the same time, which importantly proliferation your likelihood of approval and saves you a considerable volume of time. Ensure that the loan installments are recurrently paid off for evading arrears or also for repairing your credit groove. The location of the property is also considered. The character times past of the applicant, including the fiscal order of the corporate is thoroughly reconnoiter. How many times do you want to go through this procedure'Most aspirant concur the correct remedy is only once. You are also offered a repayment period of your prime.

Business nation are all the time in need of funds for meeting insistent or regular professional incidentals. In addition, commercial mortgages entail knowing indemnity to fastened the loan.
One help of secured Commercial business loan is that the professional anybody can get the loan at lower interest rate. You can mine commercial corporate loans from any lending institutions like shore, financial companies or from an on lender. If approved, the transaction can continue. However lower interest rate depends on lot of aspect also such as good praise annal and payment capacity of the defaulter.

Five Stars Mortgage is a provider of Hard Money Loans throughout all 50 states.

Tuesday, August 7, 2007

Residential Mortgage Market Troubles Continue

Standards are tightening while some mortgage companies are going under reports an insightful article in today's WSJ Online.

Perhaps the most impressive news is that several residential & commercial mortgage companies have all but closed their doors for business. American Home Mortgage Investment Corp., which stopped making loans earlier this week, said late yesterday it would cease most operations, slashing its work force to about 750 from more than 7,000.

Less shocking but still noteworthy is the rate jump seen in the residential markets where Wells Fargo & Co. is charging 8% for a prime jumbo 30-year fixed-rate loan that carried a 6 7/8% rate late last week.

The fright among investors is forcing lenders to go back to more-conservative practices that were the norm before the housing boom of the first half of this decade. Many now are focusing on loans to borrowers who are willing to document their income, can make a down payment of at least 5% and have a history of paying bills on time.

Florida Commercial Loan are still available. Five Stars Mortgage provides hard money purchase or refinance commercial loans in Florida and Nationwide.