Comments on: Billions, Literally, Chasing Distressed Commercial Real Estate

By: Bad Commercial Real Estate Loans Are Coming in Hot! And They’re Right on Schedule — REIT Wrecks

Wed, 10 Mar 2010 23:10:27 +0000

[...] is nevertheless working as it should: bad debt is being recycled into equity, and amazingly enough, prices have not dropped as much as one would expect. Should the government get even further involved, using our ever-more scarce tax dollars, when [...]

By: Long Odds For Apartment Owners In Vegas; Prices Down By At Least 60% — REIT Wrecks

Wed, 10 Mar 2010 18:50:40 +0000

[...] the crummy fundamentals in Las Vegas, this sale is yet more evidence that the distress in commercial real estate may be cushioned by patient capital much more so than some currently [...]

By: Commercial Real Estate: 6.8 Trillion Reasons Why it Won’t Derail the Recovery — REIT Wrecks

Wed, 10 Mar 2010 05:03:16 +0000

[...] and special servicers that are determined not to sell into a weak environment, and the result is 30 or more bids for distressed commercial property sales in major markets, with some bids coming from as far away as Germany and South [...]

By: REIT Wrecks

REIT Wrecks — Tue, 12 Jan 2010 06:38:06 +0000

If you poke around here a bit, you'll probably find more that you agree with than disagree. A little disagreement is good though, so I'm glad you've decided to stick around.

With regard to what I think is your main point, My partners and I bought a 58 unit property with 79% LTC leverage, invested in some very minor cosmetic improvements (signage landscaping, lighting, interior common area upgrades) and now we are doing 20% cash on cash with almost 2x debt coverage.

This is C property that we bought in 2006, at the height of the market. We do not plan to sell, because it's obviously a good asset, but we also negotiated for more than six months to get our price from the seller. At the same time (2006), similar properties were selling in San Francisco at 20x gross rents after two weeks on loopnet. If you bought those with leverage and have no staying power, you are soiling your pants right now. We like to sleep at night too, so we go where everybody isn't.

Cheers, REIT Wrecks

By: Joseph

Joseph — Mon, 11 Jan 2010 21:40:25 +0000

I will stick around, and I don't think I misquoted you. I actually "quoted" you in several instances, and took a very small liberty to dig deeper into a very apparent perspective you had on the subject. A perspective in which i still greatly disagree. I don't think there was a softening, and if that was suspected, it was intended to be softer. The article you are referring to addresses none of the issues I had with your first post. Again, if you bought over valued property with leverage, yeah you have major problems. Both areas that I steer clear from, and help my investors do the same.

By: REIT Wrecks

REIT Wrecks — Sun, 10 Jan 2010 04:19:37 +0000

Joseph, why move on? Candor is good! Stick around. You misquote me a little bit though (really, you misquote me a LOT. The statements you attribute to the post do not exist), and I suspect that the softening of your comments in Part II come as a result of reading my post on the price-value disconnect in San Francisco commercial real estate.

Satan's underpants indeed!

Cheers, REITWrecks