Increasing vacancies, decreasing rents, negative cash flows, rising cap rates, imprecise valuations, severely constrained financing, and personal guaranties will continue to put severe pressure on over-leveraged commercial real estate owners during the next few years. As the wave of commercial property loan defaults begins to crest, borrowers should be armed and prepared with practical strategies and solutions for dealing with their under-performing properties and maturing loans. Foresight Analytics recently estimated about two-thirds of the $800 ... Read more

This article will provide a general summary of real property foreclosure procedures, timelines and strategies for borrowers and lenders in California. As a precursor, it helps to understand that the creditor typically has a promissory note evidencing the loan or mortgage, which is secured by a recorded deed of trust. The deed of trust identifies the trustor, trustee and beneficiary, as well as the property securing the note. The truster is the debtor, and the ... Read more

Retail landlord’s everywhere have almost certainly experienced tenant requests for rent reductions during these challenging economic times. When responding to such requests, the landlord should consider doing the following: 1. Require a written confidentiality agreement before discussing any rent or other lease modifications with the tenant, to reduce the risk of opening a Pandora’s Box with other tenants. 2. Ask the tenant to provide a current financial statement, a report of annual sales for the last ... Read more

Almost everyone is familiar with the three cardinal rules of real estate investment: “Location, Location and Location.” Although property well situated certainly has fewer risks, an investor must carefully consider other ways to minimize the risks involved in the purchase of commercial real estate. Focusing the Search Commercial real estate includes apartment, office, industrial, retail and other income properties. Each of these property types has different advantages and disadvantages, risks and opportunities. Most commercial real estate ... Read more