Commercial real estate crisis a buyer opportunity

There may just be some great deals to be had for commercial property investors. Is now a good time to start a business?

One mans loss is another's gain, with commercial real estate that  old adage holds true as well. With prices dropping and more foreclosures in the commercial real estate sector and incentives for employers and business expansion coming about it just may be. 

“Here come the real estate vultures”

“(Fortune Magazine) -- These are tempting times for real estate bargain hunters. Whether it's the tony house down the street with an asking price that keeps dropping or office space at a deep discount, if you have the means, there are deals to be had. Individual investors snapping up foreclosed houses have helped boost home-sale figures sharply in recent months (although prices have remained depressed). And now some real estate investment trusts are raising money to fund acquisitions of distressed commercial properties.”

By Michael V. Copeland 
June 22, 2009
Fortune Magazine Full Article here

“Distress among commercial real estate mortgages in New Jersey is intensifying”

“with more properties in the state going back to the lenders. Some industry insiders say a crisis may be in the works if the economy continues to falter.

You’re certainly seeing an increasing rate of foreclosures, and of lenders taking back properties,” said David Bernhaut, executive vice president at the East Rutherford office of Cushman & Wakefield, a commercial real estate brokerage. “It’s distress that everybody feels and senses.

New Jersey currently has nearly $3.6 billion of distressed commercial assets, according to Real Capital Analytics, a New York-based research and consulting firm. Distressed assets include those in foreclosure or bankruptcy, have been restructured or modified, or have been taken back by the lender through foreclosure. “

So can now be a great time for the commercial investors to begin peaking their heads out? I would say that it depends on your financial ability to maintain the property if it should experience a lower than normal occupancy for a while.

“Lenders are currently lending at a 50 percent to 65 percent loan-to-value ratio, compared to 70 percent or 75 percent five years ago, said Kenneth Pasternak, chairman of KABR Real Estate Investment Partners LLC, a Paramus-based opportunistic real estate investment fund. Meanwhile, real estate is being appraised at values that are off by 25 percent of what they were five years ago, he said.”

 

Source: NJ Biz Article by Evelyn Lee 11/9/09
Full Article here: Fearing a commercial Real Estate crisis

This may just be putting current owners between a rock and tight place presenting the kind of opportunities and deals investors generally look for.

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Cap and Trade Can Cost You Dearly, Find out How!

Will the new Obama initiative called Federal 'Cap and Trade'
Energy Policy effect you?

Under my plan of a 'Cap and Trade' system electricity rates
would necessarily skyrocket" - President Barack Obama

The following petition, along with the names of those who sign it through the form below, will be printed and mailed to: Every United States Senator, The National Association of Realtors, and Every State Real Estate Association.

I hereby petition Congress to reject any and all legislation, or regulatory action by the EPA, that would enact new energy taxes and/or establish a national cap and trade system for carbon dioxide
I hereby petition the National Association of Realtors to oppose any and all legislation, or regulatory action by the EPA, that would enact new energy taxes and/or establish a national cap and trade system for carbon dioxide.

Link to the Petition:
http://www.brokeragentsocial.com/Petition-EnergyPolicy.htm

Watch the news clip video, and sign the Petition if you want to avoid this, join real estate brokers and agents and get your voice heard.

Tired of all the government spending on your dime? Tired of being taxed? We'll I’ve got news for you, many more taxes are coming and existing taxes will rise for everything you buy and ever service you use.

Make your voice heard today, you CAN make a difference!

To make a meaningful impact signatures are needed - Which may be difficult to do alone given our modest reach in cooperation with Broker Agent Social and you, we can make a difference.

Please feel free to share the petition with others through your email, blog postings, etc. to help ensure those who wish to be heard may.

As a reminder, anyone in the real estate industry is welcome to join the petition as well (realty sales, lending, title, appraisal, etc.)

Here’s a link to the petition, which you are free to share at your discretion, send it to family, friends, everyone, post it on your blogs, twitter, facebook and get the word out and sign the petition today:

Link to the Petition:
http://www.brokeragentsocial.com/Petition-EnergyPolicy.htm

Stated efforts of H.R. 2454, otherwise known as Cap and Trade, are to create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.
Primary objections related to the legislation are: 1. Government control and taxes necessary to affect the bill which may drive housing markets in to a deeper recession. 2. Energy taxes forcing US jobs overseas which could put further pressure on housing markets and defeat the bills purpose by shifting pollution to other parts of the globe with less regulation.

Federal Energy Compliance Audits on Every Home Sold?
The National Association of Realtors was effective at having this exacting legislation removed from the original bill. This effort does not prevent the government from instituting audits at a later time, at a potential cost of thousands to home sellers, in order to affect the following provision of the most current bill:
H.R. 2454 Page 350 - Line 13 - The Administrator shall develop and implement standards for a national energy and environmental building retrofit policy for single-family and multifamily residences .... to facilitate the retrofitting of existing buildings across the United States to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes ....