| Posted by david on March 29, 2010 |
The USA Today reported that small banks are having a tough time lending to small businesses. Why? Well, for one, government regulators are tightening lending restrictions and instituting guidelines that make it very difficult for banks to do business. In states such as Florida, the collateral for such business loans that the bank makes is the commercial real estate – which makes it even harder for a bank to authorize a loan since the commercial real estate market in Florida is hurting. Tightening restrictions is not the answer to the problem. You can’t put a band-aid on gushing wound and expect the wound to close and be free of any sort of infection.
Banks CAN get out of this mess they’re in – especially the smaller banks. One way to fix the problem is to get the loans off the banks’ books – ie, sell the note through a note broker. Some banks may retort and say that they can’t take a huge capital hit right now. Well, the days of selling commercial notes for pennies on the dollar are over. There is more demand for notes and the market is getting bigger with note buyers. With more demand in the market, the price for an individual note is heading north. No longer do banks need to sell all notes in a pool like some of the bigger banks but they can sell individual troubled notes that may be a problem now or are expected to be a problem in the near future. Using a platform like the internet, small banks can attract an array of buyers for their commercial notes and hence ask for a higher price. Let’s not get fooled here – banks will still need to sell notes as a discount but the steep discount days are no longer here.
| 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 stuart on February 12, 2010 |
Congress warns of Commercial Real Estate failures coming
According to an article by the NY Times that summarizes the Congressional Oversight Panel report on Distressed Commercial Real Estate Loans, next year could mark the beginning of a huge wave of troubled commercially backed real estate loans affecting local and regional banks to the tune of $300 billion dollars. The amount of Commercial lending made in the last decade totaling almost $1.4 trillion dollars will require refinancing between 2011 and 2014. Nearly half of these loans are currently ‘underwater’, meaning the property is worth less than the amount owed on the remaining loan balance. Unfortunately, it’s mostly the community banks that are affected by this as the largest 19 wall street bank holding companies are classified as having a CRE concentration.
Commercial lending seriously affected
This amount of bad debt could seriously hinder the ability of banks to lend commercially, as just about every Commercial Real Estate Broker in the country knows. Right now, to get a commercial property financed takes cash flow, equity and basically the ability of the borrower to prove that they don’t need to borrow the money. The Congressional Panel found “a significant wave of commercial mortgage defaults would trigger economic damage that could touch the lives of nearly every American.” When commercial properties fail, it creates a downward spiral of economic contraction: job losses; deteriorating store fronts, office buildings and apartments; and the failure of the banks serving those communities. Because community banks play a critical role in financing the small businesses that could help the American economy create new jobs, their widespread failure could disrupt local communities, undermine the economic recovery and extend an already painful recession.
The time is now for community and local banks to dispose of their distressed or soon to be distressed commercially backed notes.
| Posted by stuart on February 4, 2010 |
Selling Commercial Notes backed by CRE
Sellers of commercial notes are finding the Commercial Note Brokers concept to be a good fit. When a bank or other noteholder begins to investigate the avenues available to market performing, subperforming or nonperforming commercial notes secured by Commercial Real Estate (CRE) they find that there are many companies claiming to have the solution.
Upfront Fees, Set Discounts, and other
Restrictions
They find there are those who would charge upfront fees, set discounts and restrict the size and location of the debt collateral. If a bank finds itself in a position where restructuring their porfolio, rebalancing to a better classification of notes according to the new and everchanging FDIC guidelines, the need for reliable and secure marketing of that commercial debt is imperative.
Commercial Note Buyers are registered on secure site with confidentiality
Where else is there an opportunity to have a note or collection of notes marketed to a worldwide audience of Commercial Note Buyers, with a thumbnail that protects the bank’s and borrower’s identity and the address of the collateral on a secure website. Potential buyers are registered, screened and pledged to confidentiallity prior to disclosure of sensitive information. Buyers conduct their own due diligence and then make offers directly to the bank. There is no middleman in striking the deal. If this concept could meet your needs, contact Commercial Note Brokers today.
| Posted by stuart on January 31, 2010 |
Looking to purchase $8 to $10 million of Performing but soon to be distressed CRE Notes
Commercial Note Brokers (CNB) has a buyer who is specifically looking for $8 to $10 million of currently performing commercial real estate backed notes. The exact specifications of the notes need to meet the following critieria:
Performing but distressed notes criteria
- One single note or multiple notes.
- Currently performing.
- Soon to be distressed due to inability to ‘roll over’ the loan.
- Preferably the seller is a bank.
The buyer in this case is a bank. The bank is looking at a range of discounts on the notes, but expects between 5% to 20%. The loans can have a variety of maturities and current appraisal problems/issues are expected. Commercial Note Brokers intends to act as a workout facilitator for the businesses and loans and to assist the distressed businesses in returning to full profitability and in securing new permanent financing for their loans.
This situation is ideal for a bank that has too much distressed debt classified as investment or who wants to prune certain borrowers or loans from their portfolio with a minimal impact to the banks capital. The purchasing bank is overcapitalized and can offer permanent workout financing to the distressed borrowers.
If your bank is in trouble with too much commercial real estate debt and is looking to assist the borrowers who may be unable to prevent going into default as their balloon loan matures, our bank buyer will purchase the notes and help your bank align its real estate loan classifications with what the FDIC is demanding.
Please contact:
Stuart Dobson
Stuart@CommercialNoteBrokers.com
303.919.0309 direct
Jason Pavlovic
Jason@CommercialNoteBrokers.com
303.667.1622 direct
