Banks Ease Hold on Properties
According to real estate insiders, institutions and organizations lending capital to real estate investors are beginning to lighten their grip on properties, thus, putting more real estate out there.
Presently, the multifamily real estate arena is in strong demand; more banks are looking to rid of properties from their records. “They seem like they’re much more aggressive now. They’re starting to really take things into hand, calling up and saying, ‘What’s the real number? How can we get this sold?’ They want to step in. They want to get it done,'” said Corcoran Group’s Chief Executive, Pam Liebman.
According to commercial real estate players, billions of dollars are just waiting to be invested in distressed real estate. Yet, there are very few desirable properties on the market as banks are concerned about the strength of their balance sheets and reluctant to write down real estate values.
Chief Executive of the LeFrak Organization, Richard LeFrak, a commercial real estate developer said of banks sitting on assets, “they’re waiting for their capital to get more robust before they have to write these things down. And if you could pay any kind of interest, they can play with you.”
On the other hand, some banks have not moved fast enough simply because they are under water on some assets. “I think they are culling through the inventory just like anybody else would and saying, ‘If I wait with this one, I will do better,’” said LeFrak. Interestingly, banks jump to sell hotel properties as hotel foreclosures can cripple business and wreck values.Post Tags: real estate short sales