Richmond, VA (PRWEB) January 13, 2009
In an effort to supply developers and investors with the data they want to transact organization effectively and profitably, John B. Levy & Organization is making a series of podcasts on trends and issues that impact the commercial true estate marketplace. These podcasts, offered at http://www.jblevyco.com, address problems such as methods for improving liquidity in a tight market place and the effect of slowing loan originations on the commercial actual estate industry.

In its most recent podcast “Where Have All The Flowers Gone?,” the firm offers genuine estate borrowers three guidelines for executing deals in what will likely be one more tumultuous year in the capital markets.

Very first, have realistic expectations – this is the longest recession we’ve had because the Excellent Depression. Even though most people grew to love 75 – 80% leverage in the glory days of 2005 – 2007, borrowers need to expect something far more in the range of 60 – 65% this year. If you happen to be borrowing from a bank, plan on complete or partial recourse. If non-recourse is a requirement, then you will want to borrow from an insurance coverage company or pension fund. And if you have your heart set on an interest-only loan, then program on a broken heart as these loans are basically not available these days.

Second, how to handle CMBS loan maturities. Very first, never panic. Clearly, the 2008 CMBS market was ugly – volume was down over 95% from 2007 volume. But CMBS is not dead forever – it will come back at some point, but with some structural modifications. If you have a loan coming due, most particular servicers are empowered to extend loan terms, change rates and make other loan modifications. They aren’t in the loan-to-personal business, so their 1st selection is not to foreclose on your home – they want to have the loan paid off. They will possibly try to grant an extension even if it’s not an extension you get in touch with terrific – larger interest price, added cash equity requested, or principal amortization.

Third, with the present credit crunch, it’s an superb time to leverage excellent multifamily items. Thanks to Freddie Mac and Fannie Mae, multifamily is the only asset class with a semblance of normalcy. Prices are cheap – six% fixed variety (four% and reduced for floating), 75-80% leverage, and non-recourse.

Firm Background
John B. Levy & Business, Inc. is a true estate investment-banking firm headquartered in Richmond, Virginia. Because John Levy founded the business in 1995, the firm has structured more than $ three.5 billion in financing for developers and owners of industrial and multi-family projects nationwide, often investing its personal proprietary funds into transactions with its clientele. Mr. Levy is an expert on commercial genuine estate financing and the effects of interest rates on industrial real estate markets. He is the originator and author of the Barron’s/John B. Levy & Company National Mortgage Survey, a month-to-month survey of more than 30 of the country’s largest institutional investors, as well as purchasers and sellers of industrial mortgage-backed securities, which Barron’s published for over 23 years. Mr. Levy is also co-creator of The Giliberto-Levy Commercial Mortgage Efficiency Index (sm), the 1st and pre-eminent index to measure and analyze the efficiency of investments in the commercial mortgage business. Additionally, he is a member of the Board of Directors of Anthracite Capital Inc. (NYSE: AHR), a New York Stock Exchange REIT managed by BlackRock, Inc and a former director of Value House Trust.

For much more info about John B. Levy & Firm, please visit the firm’s website at http://www.jblevyco.com or call John Levy at 804-644-2000, extension 237.

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