The Investor Insights » syndication

Capital Markets Loosening Up

lassiter — Sun, 11 Jul 2010 16:27:49 +0000

We got a glimmer of good news on the commercial lending side of the world from Marcus & Millichap Research…

* Constraints on commercial real estate lending eased during the first half of 2010, a trend that should continue as more lenders re-enter the securitization market and life insurance companies pursue a broader range of deals. Unlike a year ago, financing has become available for properties over $10 million, and some lenders have re-engaged higher-quality, lower-risk transactions in noncore markets. In addition to greater availability of financing across property types, price ranges and markets, lenders also have increased loan-to-values (LTVs) on new loans by an average of 5 percent from last year. Despite these positive developments, potential borrowers continue to face tight underwriting standards and stringent lender requirements compared to historical standards. * While commercial mortgage originations during the first quarter remained depressed relative to figures reported from 2005 to 2007, conduits and life insurance companies drove up activity 12 percent from last year. During the first half of 2010, U.S. CMBS issuance reached $2.4 billion, approaching the 2009 total of $3 billion but still just a fraction of the $197 billion annual average reported from 2005 to 2007. Even when viewed against a less frothy period, such as 2000 to 2003, activity in the first half still pales by comparison. Recent CMBS issuance included multiple-borrower deals with subordinate tranches, a far cry from the ultra-safe, single-borrower transactions completed late last year, generating optimism the sector will soon offer increased liquidity. * New CMBS loans price in the 6.0 percent to 6.5 percent range for five-year mortgages, with lenders targeting deals of $10 million or more. While these interest rates may be at the higher end of the spectrum, CMBS borrowers can often negotiate 30-year repayment schedules versus an average of 25 years for life insurance companies, offsetting the impact of interest rates on monthly payments. In addition, LTVs for CMBS loans can push into

Best Properties for Syndication

lassiter — Sat, 19 Sep 2009 16:34:32 +0000

This is a great article about the types of properties to target for syndication. Joel advises looking for “owner distress”, “market distress”or “property distress.” Every real estate syndicator who I speak with recognizes that there’s a lot of money sitting on the sidelines that’s just terrified to

Hard Money for the Down Payment?

lassiter — Tue, 02 Jun 2009 16:38:58 +0000

This is another topic that seems to generate a lot of confusion for real estate investors – getting a hard money loan for the down payment on a commercial investment property. The problem is that many investors think a 100% loan to cost (LTC) loan is readily

Private Money Blueprint – Free Training With… ME!

lassiter — Sun, 03 May 2009 19:07:28 +0000

My friend Trevor Mauch is re-releasing the Private Money Blueprint course on Wednesday, July 8th. Check it out here… http://www.lassiterrecommends.com/privatemoney If you decide to grab a copy of the course, I have a special bonus package for youfeaturing MORE free training

Tom Cooke – Syndicator and Rehabber

lassiter — Sat, 25 Apr 2009 23:54:28 +0000

Here’s the April 2009 installment of Real Estate Investing in the Real World featuring Tom Cooke.

Tom is a syndicator and rehabber based in Long Beach, California and he spends about an hour taking us through his strategy and sharing tips, tricks and the secrets to his success.

2009 Investor Survival Report

lassiter — Thu, 12 Mar 2009 21:57:36 +0000

Our friend and fellow investor, Tom Cooke, sent us this special report to share with you. He’s a very successful wholesaler/syndicator from California. He’s only been an investor for about a year or so, but he’s killin it. Just click the link below to

Syndication Success Strategies

lassiter — Thu, 26 Feb 2009 19:30:28 +0000

Here’s the replay of the the Syndication Success Strategies Virtual Class!

Original Broadcast Date: February 18, 2009

Syndicate Your Way to a Huge Payday

You’ll discover:

• What is Syndication?
• How Can You Become a Syndicator?
• How to Leverage Your Expertise Instead of Your Money?
• How to Put Together Million Dollar Deals without Putting up a Penny of Your Own Money
• 10 Top Ways to Make Money as a Real Estate Syndicator
• 10 Easy Steps to Forming Your Real Estate Syndicate
• 5 Syndication Business Models – Copy Your Way to Success
• How to Form Syndicates in Other Markets – Not Just REI