We start this off by having to say....what is next? Great deals are becoming harder and harder to make work! We are seeing this now creep into the Commercial Sector also. The days of turning these properties may be more and more difficult as time goes on. Take some time to look at the Destin Florida Commercial Real Estate market online and see what is going on locally. There are some positive angles and luckily if you are in a pretty strong cash position, there are some great opportunities.
Commercial Loans Requiring More Collateral
After a decade of non-recourse commercial real estate loans for which a lender accepts the property itself as the only collateral, recourse loans are again becoming common. If a borrower can’t pay off a non-recourse loan, he simply hands the building's keys to the lender and walks away. The bank can take control of the building and sell it to pay off the loan The borrower’s other holdings, including personal assets such as homes and boats, remained intact.Now, with falling valuations, a building could be worth less than the debt on it. Banks want a way to make up the difference, so they are asking borrowers to pledge other assets, including personal ones."Oftentimes, it's either sign personally or you don't get the loan," said Donald Isken, a real-estate attorney at Morris, Nichols, Arsht & Tunnell LLP.
Source: The Wall Street Journal, Lingling Wei (07/20/2008)
So take some time to look online at www.InvestSmarter.com and pay attention to our forum section. If there is something you would like to discuss just let us know. We are constantly getting more people online discussing what is hot in real estate. Specifically in the Destin Florida Commercial Real Estate Market.
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