This post discusses real estate investing and investing deals.

When you’re learning about Commercial Financial Real Estate its always something new, it’s easy to feel overwhelmed by the sheer amount of relevant information available. This informative article about Commercial Financial Real Estate should help you focus on the central points.

The long-feared financial disaster is still looming. Bad court decisions could set it off.

The commercial real estate market is on its last legs and unless drastic actions are taken, the effects on the broader economy will be catastrophic. The obvious problem is the excessive amount of debt placed on the properties and the amount of debt that has to be refinanced during a relatively short period of time.

Between now and 2013, at least $1.3 trillion of financing comes due, of which $160 billion was the result of securitizations. Unfortunately, as a result of the virtual disappearance of the secondary market, the weakened condition of the banks, and the amount of debt already held by insurance companies and pension funds, even under the best of circumstances, less than half of the outstanding debt can be refinanced. This is compounded by the collapse of the commercial rental market in the last 18 months as a result of the Great Recession. For example, office rents in prime areas of Manhattan that were in the $100-$120 a square foot range in 2007 are now trading (with rent concessions and work letters) at half that amount.

After two years of one financial crisis after another, the Fed has fewer cards to play, and the foreign investors who bailed out commercial real estate investors in the past are sitting on the sidelines waiting for the prices to collapse. This problem is exacerbated by the lingering effects of the recession: absence of credit; growing job losses as a result of falling prices, consumer demand and credit; the insolvency or near insolvency of so many institutions; and the loss of confidence in the U.S. economy by our trading partners.

I trust that what you’ve read so far has been informative. The following section on Commercial Financial Real Estate should go a long way toward clearing up any uncertainty that may remain.

In the last few weeks there have been a series of court decisions that will have repercussions in the credit markets for years to come making an already cautious lending community absolutely paranoid, and restricting credit even if available.  If your a sharp real estate syndication expert you’ll be in fine shape to take advantage of this economic downturn.

Now you can be a confident expert on commercial real estate. OK, maybe not an expert. But you should have something to bring to the table next time you join a discussion on Commercial Financial Real Estate.

for more info get subscribed to our newsletter to the right hand side of our blog as Dec 1st were going to release some info that will help you invest in Commercial Financial Real Estate very wisely

This entry was posted on Saturday, November 21st, 2009 at 4:41 am. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.