8,000' Garland Commercial Building For Sale - Owner Financing.

926 N 1st Street. Central Air conditioned/heat in 6,000' with two 10-ton Trane units. This industrial building built in 1985 features drop ceilings, tilt-walls and three overhead doors. The front area features three offices and a bathroom. 400 amp breaker box can handle almost any need. Underground electrical was updated approximately ten years ago. Also for lease at $3,900 monthly plus insurance. Owner-financing option for qualified buyers.

View details and photos at t2realestate.com

Call Troy Corman at 214.690.9682.

Are banks holding on to commercial foreclosures?

By Troy Corman, t2realestate.com
Everyone was expecting fire-sale prices on commercial real estate. But it doesn't seem to be happening on the grand scale some were predicting. Many commercial properties that have been foreclosed on are being leased instead of being sold at fire-sale prices.

“All the banks are taking haircuts (losses) now, but in stages,” one banker stated. “Most banks don’t have the capital to absorb sizable losses all at once, so they are holding onto their commercial real estate to stagger the losses.”

The smaller the bank, the harder it is to absorb the loss from selling depressed properties.

The FDIC only allows banks to hold on to properties for 5 years, although banks can request extensions. During this period, banks must offer a plan to dispose of their real estate assets.

FDIC real estate assets are growing as the FDIC continues to take over insolvent banks.

Most large assets seem to be gobbled up by the REITS, which have a clear advantage over individual investors.

However, individual investors are having some success financing assets of up to $3 million through the federal government’s Small Business Administration (SBA) loan programs, like the 7(a) and 504 loans.

Commercial Real Estate Blows To Increase In 2010

American Banker article summarized by Troy Corman, t2realestate.com

Banks will face major problems with commercial real estate in 2010. For many community and regional banks, it will be their biggest headache. Many talking heads are usually referring to CMBS, or commercial mortgage-backed securities when discussing commercial real estate. But many local and regional banks hold whole loans on their books. Most of these loans have short maturities of around 3 to 5 years. And many were financed during the boom. As many commercial assets must refinance out of those loans in the next few years, the problem is that the underlying real estate has declined in value so much that it is now under water. And it's getting worse every day. Each quarter, non-performing loans and commercial mortgage delinquencies are rising.

There is nearly $40 Billion in problem commercial real estate loans but only $5.8 Billion in commercial REO, or properties banks have seized through foreclosure. Unfortunately, the problems are accelerating.

Sooner or later, someone is going to have to pay the piper, and let's hope it's not the American taxpayer again. For those with access to capital and real estate investing expertise, the next few years will mark a golden opportunity.