Video Time: 4 Minutes
For distressed investors, don’t be too quick to rush in. Look for a new wave of lenders to come in. We are looking at several quarters of interesting times in the immediate future. There are active lenders out there right now.
Video Time: 2 Minutes
Dealing with appraisal reductions CMBS loans have the right to go in and reappraise properties. Determining LTV when there are fewer arm’s length trades. What metrics should you rely on in underwriting when LTC is not reliable?
Video Time: 4 Minutes
Distressed debt investors are looking to buy into partnerships. What are other opportunities in the market right now? In most cases a senior lender is not going to be ok with a borrower using preferred equity to take his chips off the table. Instructors expect a big uptick in these type of deals.
Video Time: 3 Minutes
If you are taking a PPP loan it is possible to trigger subordinate debt on CMBS loans. CMBS loans carry very complex loan documents. Because of this, they have strict regulations. One of the regulations of a CMBS loan prohibits the borrower from taking on subordinate debt. If the entity takes on a PPP loan that is considered debt and can be construed as a violation of the CMBS loan. Even though the PPP loan is not recorded on the property. If the servicer became aware of it there could be a default triggered. Borrowers should talk to counsel before doing anything on a CMBS loan.
Video Time: 7 Minutes
Yes, underwriting requirements have changed, but there is also a more thorough process for looking at numbers before closing deals. Taxes and insurance in Texas must be underwritten. Outside of that, vacancy factor will need to be bumped up as well. Most of the underwriting changes have really been focused on the borrower. People are looking at assumptions when properties are under distress. Typically people are looking at getting new debt because of lower interest rates.
When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.
Video Time: 3 Minutes
In May there were no reliable metrics. The physical restraints of not being able to meet face to face with clients is affecting transaction volume. The amount of capital on the sidelines is immense. There is a lot of interest in acquiring assets.
When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.
Video Time: 4 Minutes
Post-COVID, retail and hotels are off the table for many lenders.
When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.
Video Time: 1 Minute
When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.
Video Time: 3 Minutes
Key Points
When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.
Video Time: 5 Minutes
When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.
Video Time: 13 Minutes
A brief overview of how we got here starting in February of 2020 when the National Bureau of Economic Research states that the United States economy officially entered a recession. This includes the effect on lenders (CMBS, National Banks, Regional Banks, Debt Funds, Life Companies and Credit Unions) and how they have reacted since February.
When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.