| Posted by david on April 20, 2010 |
The sharp decline in the commercial real estate market over the past 18 months has left many investors troubled by their increasingly devalued assets, yet has opened up a huge demand for investment in commercial notes. Think about the first rule of accounting: for every credit, there must be a debit. Likewise, for every loss, there is the potential for others to gain, in this case in an enormous way.
A number of major banks, especially those in the “too-big-to-fail” category, have been hoisted out of the water by government intervention and the TARP program. Still, other banks, especially regional and smaller-cap banks, are looking to the distressed asset investor market to help alleviate some of their stress and are willing to sell a portion of their commercial notes to these buyers at a discount.
Banks are not in the business of owning real estate and therefore cannot devote the time into turning non-performing assets into positive cash flows. Because of this circumstance, banks will employ a note broker to match up the assets they want off their books with the proper investors, either individually or as a pool of assets. For the keen investor in commercial properties, this is the light at the end of the tunnel. I’m not talking about the easy homeruns – the days of 30¢ on the dollar just don’t exist any more – I’m talking about the calculated investment and management of commercial notes, backed by a multitude of properties (anything from shopping centers to hotels), for the purpose of creating higher returns based on uncommonly low prices. If an investor needs to borrow money from a lending institution to buy some pools of notes, loan rates are near historic lows. If an investor has the foresight to understand a property’s true potential, or (perhaps more importantly) to recognize a screaming deal when it’s available, there is a lot of money to be made in today’s market – and it’s happening right now.
| Posted by david on March 21, 2010 |
St. Louis is feeling the heat. Not because yesterday was the first day of spring but because the commercial real estate market is starting to weigh down on banks. An article in STLToday.com reported that banks in St. Louis have roughly $10.2 Billion in commercial loans on their books (http://tinyurl.com/yz3p3ts).
I see articles like this all the time in all sorts of online periodicals and blog posts. And many of these articles have the same motif: Banks are facing tough times with their commercial real estate portfolio. For banks, the solution is simple – get their unwanted commercial real estate notes off their books as soon as possible so they can continue to lend. But how can they do that? Well, for one, banks need to be pro-active and figure out how to sell their non-performing notes for the highest dollar amount they can muster. The market for commercial notes (both performing and non-performing) is becoming more competitive and banks need no longer to sell their pool of notes for $0.20 on the dollar. They can cherry pick which notes they want to sell and with a strong demand, they will usually fare better for a single note for sale than selling a bundle of notes to a vulture fund or some Wall St. sharks.
Commercial Note Brokers represents buyers for all types of notes including: Retail, Multi-Family, Office, Industrial, Single Family Residence, Strip Malls, Shopping Centers, Land, Hotels, Hospitality, RV Parks and many more. In this market, a bank should seriously consider using our platform to market their individual commercial notes.
Contact Commercial Note Brokers today to learn more!
http://www.stltoday.com/stltoday/business/stories.nsf/0/EF8EA4E41777D691862576EC0000E2FD?OpenDocument#tp_newCommentAnchor
| Posted by stuart on February 19, 2010 |
Commercial Note Brokers announces $8.9 Million in Performing and Non Performing commercial real estate notes for sale
Based in Broomfield, Colorado, Commercial Note Brokers (CNB) is proud to announce the offering of $8.9 million in performing and non performing commercial real estate notes for sale. These properties are all located in Colorado and consist of a Medical Office building, car wash, commercial raw land and two unique properties.
At this time the Medical Office building has just become non performing, but may become performing again with the signing of a pending lease. The other properties are all performing at this time.
Register as a note buyer with CNB
In order to view detailed information about these or other particular properties, please register on our site and let us know exactly what you are looking to purchase and where. We have a great number of properties that can not be advertised on our site due to specific agreement with the bank selling the notes, but that are available to be matched to buyers that have expressed an interest in that type of real estate note.
Get on our hot list today! Be the first to know about new commercial real estate notes for sale as they become available. All you need to do is to register as a buyer and let us know
what you are looking for so we can show you what is available in your area.
| Posted by stuart on February 18, 2010 |
Commercial Note Brokers Receives $23 million in non performing notes for sale
Commercial Note Brokers, a distressed debt brokerage for banks looking to sell and investors looking purchase non performing notes, is proud to announce the acquisition of approximately $23 million in non performing notes for sale. These non performing commercial real estate secured bank notes are primarily secured by first deeds of trust and valued between $200k and $4 million on individual notes. Some of the notes will be bundled in cases where there are related borrowers and/or projects.
The commercial real estate securing the non performing notes ranges from raw land, office condos, multi-family developments, to office buildings, etc.
Specializing in Individual notes, representing both buyers and sellers
At Commercial Note Brokers we specialize in marketing individual commercial real estate backed notes that are either performing or non performing. We represent both note buyers and note sellers on a contractual agreement basis. Our team is unsurpassed in online marketing utilizing both SEO and Social Media in addition to matching our database of potential buyers and sellers.
Bank note sellers
If your bank is considering selling some real estate secured loans and you are just getting started learning about the process or wondering how it all works, please give us a call, we’ll be happy to help.
Bank note buyers
Due to the sensitive information about the participants in the note buying and selling market. All buyers will need to register on our site, sign our confidentiality agreement, and provide information that we deem, in our sole discretion, to be sufficient before we allow access to
notes for sale.
Many notes, buyer and potential notes for sale cannot be advertised on this site even with buyer viewing restrictions due to bank sensitivity. In these cases, if you are seeking specific types of notes to purchase, please register and contact us directly so that as private situations arise we can directly cross match new opportunities to potential buyers.
thank you,
Stuart
Commercial Note Brokers
| Posted by david on January 13, 2010 |
Holders of commercial notes (banks) are not typically inclined to allow borrowers the option of modifying the principal balance, i.e. forgiving a part of the loan principal. Banks are in the business of loaning money secured by some collateral, getting repaid with interest and collecting a few fees in addition. The loan must be paid in full or the asset foreclosed, and the collateral sold. This situation allows the bank to get rid of the problematic loan and the problematic customer but, as we know, it may take years.
The old rule of thumb was “the bank wins”! Without a large down payment and with a drop of appraised value for collateral, the bank may find that if the debt were to be foreclosed the proceeds would not make the bank whole. Times being as they were, the old formulas of having large down payments and stringent underwriting to make sure the bank won were in many instances downplayed, ignored or liberalized to a point that a reversal in the market valuation of commercial real estate has left many lenders in a precarious position. Banks are under pressure to make their balance sheets comply with FDIC rules regulations. Those banks who cannot satisfy these requirements are being forced to consolidate or face closure.
One way for banks to improve their balance sheets is to sell off under performing or distressed commercial notes. The past method of liquidating these assets has been to offer a large capital group a portfolio of debt owned by the bank at a substantial discount. The buyers usually demand good loans with the bad in order to take the deal. Commercial Note Brokers has a marketing system designed to allow banks to remove the worst loans in their portfolio while avoiding the costs and difficulties in foreclosure of under-performing commercial real estate projects and avoiding having to carry REO assets on their books.
