Real Estate Investors Can Profit from Commercial Loans Ballooning

Real Estate Investment Tips Billions of commercial loans ballooning and becoming payable in 2013 combined with a “perfect storm” of historic low interest rates, rising rents, and low vacancies point toward apartment as smart investments. Now is the time for real estate investors to explore the possibilities of an increase of value priced properties entering the market.

Billions Of Commercial Loans Are Ballooning In 2013

The last big “real estate buying” period for both residential and commercial real estate properties nationwide was around 2007/2008. As real estate investors we should be aware that many of the existing 5 year fixed commercial loans used to finance those real estate investments may be ballooning or becoming all due and payable in 2013.

Ballooning Commercial Mortgages

Upwards of 4,750+ CMBS (Commercial Mortgage Backed Securities) with loan balances near $55 billion may need to be refinanced in 2013 alone. Sadly, a very high percentage of these same potentially ballooning commercial mortgages may not have sufficient income to service the existing mortgage debt...

Commercial “Short Sales” May Be Increase

In many situations, the existing commercial mortgage debt may currently exceed the conservative market value today in 2013 based upon the income and expenses for the existing properties. Yet, some mortgage lenders or servicing companies may accept partial payoffs almost akin to a residential “Short Sale” by way or either a sale or a refinance so property owners should still try to remain somewhat optimistic in spite of their challenging financial position today...

Smart Bet – Invest in Apartments

In 2013, apartment buildings are probably the most popular type of property to fund in many regions due to decreasing vacancy rates, increasing rents, and incredibly low mortgage rates for apartments which may significantly increase the owner’s net monthly cash flow...

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As the economy recovers, savvy real estate investors know there are plenty of opportunities for smart and profitable real estate investments. For nearly 90 years, the professionals at Kernors LLC have been helping their clients grow and protect wealth. Call today to get started: 503.670.9433

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