Wow, I just LOVE the Olympics. From the John Williams theme to the Late Night recap of the day’s events, I just can’t get enough of them. I’m even over the fact that professionals can now play, since in the end it only raises the level of the sports. And the very best thing is the “unexpected.” Like Bode Miller getting not “zero” but “three” medals in this Olympics, so far. You have to just love how this guy turned his sports life around. He got another opportunity and took advantage of it.
“Desire is the most important factor in the success of any athlete.”
- Willie Shoemaker
Speaking of opportunities, we are doing our best here at Excelsion to take advantage of the opportunities now presenting themselves in commercial real estate finance. I don’t know if you have been paying attention, but CMBS defaults are WAY up. First, the average loss on “resolved” loans is 52.7%!!! And 2009 ended with over $66 BILLION in “special servicing” situations (i.e., default). Your opportunity as a finance professional, should you choose to accept it, is to get out there and take advantage of these discounted payoffs with bridge loans. We’re introducing a bridge product in the next few days that can help you on transactions to $50MM and beyond. We are also exploring non-traditional financing for public companies (private placements) and High Net Worth individuals with large securities portfolios who don’t want to sell, but who need funds now for other purposes.
“If you greatly desire something, have the guts to stake everything on obtaining it.”
- Brendan Francis
Commercial Lending Tip
The Pressure Builds! As I mentioned above, CMBS defaults are at an all-time high and they are climbing. What isn’t mentioned is that these defaults are mirrored in bank portfolios across the nation. Your real opportunity is in lining up non-traditional financing sources: Hedge funds, private lenders, bridge lenders, securities lenders, bond houses, etc. to step in and take advantage of the huge discounts existing lenders are offering on even performing loans just to reduce their exposure to commercial real estate. Banks are dead (for now). Long live private money!
