MortgageQueen.us

Call Gina the Mortgage Queen today!

1-925-689-3178 Gina

Efficient, Effective Commercial Loan Workouts

Reliable Commercial Loan Workout Evaluation And Analysis

We specialize in restructuring commercial loans for Multifamily, Retail, Self Storage, Office, Warehouse, Hotel/Motel.

______________________________________________________________________________

Are You Experiencing:
Higher vacancy due to the poor economy?

Lower rents/lease rates than anticipated?

An impending balloon payment and the bank is unwilling to extend maturity?

Coming out of pocket every month because the NOI can no longer support the mortgage payment?

Having difficulty refinancing your commercial loan and just out of options?

We Can Successfully Negotiate:

Reductionn in interest rate with current commercial loan amount

Reduction in commercial loan amount with current interest rate

Immediate interest-only payment schedule with a reduction in rate

Extension of amortization schedule (for example, from 20 to 30 years)

Extension of debt maturity date (Balloon)

Forbearance and deferment of several months of payment

...And numerous combinations of the above.

We can help. Contact us at (925) 689-3178 for a free consultation.

Why Consider A Commercial Loan Workout

A perfect storm is developing in the commercial real estate lending world, where a combination of lower NOI due to macro-economic factors and a frozen commercial lending market have left many, many commercial property owners in trouble and looking for a solution.

The solution could be a commercial loan workout. An expertly crafted Commercial Loan Workout Proposal, professionally presented and negotiated by an office of attorneys and commercial real estate bankers can be a very effective means to get the lender's attention and to petition them for a solution that works for both parties. The goal is to create a win-win situation for both the Borrower and the Lender.

So why not just refinance? Simply put, you may not be able to. Below are the stark differences between the commercial lending market pre and post-credit crisis. This may provide insight into why refinancing may not be an option that is available:

Pre-Credit Crunch 2002-2007:

1.15x DCR (or even break-even 1.0x DCR!!) on Multifamily, 1.25x on Commercial

80% LTV Purchase, 75% LTV Rate/Term

75% LTV Cash-out refinance on Commercial and Multifamily

80% Minimum Occupancy

Loose underwriting of Borrower, exceptions on net worth or liquidity were typical

Almost no geographic/market limitations

Underwritten cap rates of 5%-7%

Post Credit-Crunch and Banking Crisis, 2008-???:

1.25x for Multifamily, 1.30-1.35x for commercial

50-65% LTV maximum

Underwritten cap rates of 6.5-9.0%, irrespective of appraised value or purchase price

90% minimum running occupancy for three months

Severe geographic/market limitations

Lenders more prone to pass on the deal than try to make something work

The result? Despite government programs such as TARP, the commercial lending markets remain ice cold! Banks are still more concerned with managing their balance sheet and potential defaults within their commercial loan portfolio than with lending any new money.

See if your commercial loan is eligible for a workout by calling (925) 689-3178 today!

-------------------------------------------------------------------------------------------------

What the Experts have to say: 10 Things We can Expect from the Commercial Real Estate Loan Sector This Year

1. Nearly $73 billion worth of commercial real estate loans are in some level of financial distress

2. Credit Markets Remain Frozen

3. Slashing Rents, Incentive offerings, Demanding Concessions

4. Empty storefronts, Office buildings and Warehouse Space.

5. The losses from commercial real estate loans could hit $53 billion, or 8.5 percent of their overall loan losses over the next two years.

6. Apartment loans are expected to rise further as unemployment climbs, leaving landlords struggling to fill vacancies and make their mortgage payments.

7. Delinquency rates and defaults on office and retail buildings and hotels have more than doubled in just six months.

8. For apartments and industrial buildings, the delinquency rates have increased more than 80 percent

9. Overall, some $270.5 billion commercial property loans are expected to come due this year alone

10. And it's likely many of these borrowers won't be able to refinance!

Psalms 37:4 Delight yourself in the LORD; And He will give you the desires of your heart.

Matthew 19:26 With God, all things are possible.

1.	Nearly $73 billion worth of commercial real estate loans are in some level of financial distress
2.	Credit Markets Remain Frozen
3.	Slashing Rents, Incentive offerings, Demanding Concessions
4.	Empty storefronts, Office buildings and Warehouse Space.
5.	The losses from commercial real estate loans could hit $53 billion, or 8.5 percent of their overall loan losses over the next two years.
6.	Apartment loans are expected to rise further as unemployment climbs, leaving landlords struggling to fill vacancies and make their mortgage payments.
7.	Delinquency rates and defaults on office and retail buildings and hotels have more than doubled in just six months.
8.	For apartments and industrial buildings, the delinquency rates have increased more than 80 percent
9.	Overall, some $270.5 billion commercial property loans are expected to come due this year alone
10.	And it's likely many of these borrowers won't be able to refinance!