LeRu Investments LLC

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The last couple weeks, Commercial Brokers have been reaching out to me to help salvage apartment deals that fall out of escrow.

I talked to my commercial loan guy to review deals. The DCR requirement for agency lenders make prices prohibitive. He believes valuations are going to be tested.

Practically every deal I'm reviewing is with a Bridge loan (even on well performing properties - 90%+ occupancy).

I'm was wondering if the Bridge lenders are now doing the equivalent of what subprime lenders did in 2004-2007:
• Extend the market rally for extra 2-3 years after majority of prime borrowers were exhausted.
• Made it difficult for borrowers to refinance after loan terms expired and valuations adjust.

Maybe inflation will bailout borrowers and sellers by continuing to increase prices.

Who knows?

Tread carefully.

Brokers are reaching out to help salvage deals affected by the imbalance in the market due to interest rate fluctuations.

CoreLogic Home Price Insights - Projections to 2023

Dysfunctional Policies have Broken the Housing Supply

Dysfunctional policies have broken America’s housing supply chain The U.S. has failed to build enough homes to meet the demand created by population and job growth since the Great Recession. The policies that regulate land use and housing production make it extremely difficult to add more homes in desirable locations.