There has been a lot of changes in the finance industry over the past few weeks and a lot of people’s ideas about commercial real estate have changed significantly as well. Among all the turmoil, though, I did notice that the Dow and NASDAQ did recover a bit today and my phone is still ringing. There are people doing deals and acquiring new loans, just no where near as much as they used to. One notable change is that there appear to be less people buying commercial property on their own as a personal investment.
A significant number of the projects that we used to see come in the door were from individuals and family trusts that had bought a small shopping center or corner gas station as an investment and were unsure what to do when they received a letter from the Regional Water Quality Control Board or the Department of Toxic Substances Control. I don’t expect to see many of those loans in the near future because the loan programs that those types of investors used to use simply don’t exist anymore.
What I do see and expect to continue to see are the more savvy investors and more factitious lenders contacting us to cross the “Ts” and dot the “Is” on a deal where they already know what their exposure to liability and risk is.
Either way, I’m glad I can help.