http://1697.hostedpr.comenhttp://1697.hostedpr.com/p/pr/22606Starting more than a year ago, dramatic repricing of mortgage markets still leads to a downward spiral of property values of which the full impact is yet to be felt. Lenders and buyers alike are trying to understand new pricing realities based on more conservative mortgage underwriting. Furthermore, given today’s unpredictable markets, lenders seldom rely upon any current sales transactions for appraisal purposes. Most properties sold prior to the mortgage market meltdown are based on metrics using more favorable mortgage terms and leverage not available now. http://1697.hostedpr.com/p/pr/24873Affordable Housing Expert Widens Institute’s Research Capabilitieshttp://1697.hostedpr.com/p/pr/22548Lenders are more selective than ever with current underwriting techniques reflecting very conservative parameters. And in particular, higher leverage fundings based on project values of the last couple of years are shunned. Instead, most lenders prefer internal valuation/underwriting models rather than simply applying debt service coverage and leverage restrictions to externally-generated valuations (e.g., purchase contracts and third-party appraisals). http://1697.hostedpr.com/p/pr/22484The expanding financial crisis hitting global markets as a result of domestic housing continues to torpedo the income-property mortgage market. Lenders and borrowers alike are frantically seeking answers to questions about where markets are heading including pricing, values and acceptable leverage levels. http://1697.hostedpr.com/p/pr/22485The old cliché – “Cash Is King” is as true now as ever given the sparse availability of leverage. Nearly all real estate financings, both acquisition and refinancing, are restricted to funding projects with existing, in-place cash flow. Cash-flow projections, projects with value calculations based on appreciation (e.g., land) and other ventures lacking sufficient current income ventures are shunned. Lending is severely restricted as the Real Estate Capital Institute® estimates over 80% of conventional funding sources are temporarily out of the market. http://1697.hostedpr.com/p/pr/22768Jeffrey A. Davis, a healthcare industry finance veteran joined the Real Estate Capital Institute's Advisory Board. Jeff's real estate finance career spans more than 30 years including working with Baird http://1697.hostedpr.com/p/pr/22279The start of the mortgage meltdown over a year ago continues wrecking havoc on the real estate capital markets. In particular, accurate property valuation is nearly impossible as buyers and sellers are sidelined due to limited debt availability. http://1697.hostedpr.com/p/pr/22839http://1697.hostedpr.com/p/pr/22710The commercial real estate capital markets are tightly strapped into the Wall Street roller coaster with rates jumping up and available funds tumbling down. http://1697.hostedpr.com/p/pr/22276Swooning financial markets continue dislodging all sectors of real estate capital with a vengeance. Funding sources retreat from income-property lending on a daily basis because of liquidity concerns, profitability, overexposure and a host of other factors plaguing this sector. No conventional lenders are immune including banks, life insurance companies, savings institutions and private funding sources. http://1697.hostedpr.com/p/pr/21575The real estate correction is just that... a true correction of values based on historical norms.http://1697.hostedpr.com/p/pr/16097Investment sales activity in 2007 finished at near record levels despite the national disruption within the debt capital markets. Many firms reported Fourth quarter numbers were down significantly from historical norms and activity levels are expected to be lower in the foreseeable future. Driven by changing debt availability and terms, significant pricing gaps among buyers and sellers are creating delays in launching of any major assets sales. This slowdown is expected to continue well into 2008 until liquidity returns to the marketplace.http://1697.hostedpr.com/p/pr/15372The new year triggers new hopes and fears as real estate capital markets continue readjusting from nearly a decade of uninterrupted volume and pricing momentum. While many investors fear new funding restrictions, others welcome more disciplined and “customary” underwriting practices deemed to be “normal.”http://1697.hostedpr.com/p/pr/15164Prepayment penalties can be substantial to borrowers, as well as attractive profit protection for lenders. Borrowers need flexibility, while lenders seek yield preservation.http://1697.hostedpr.com/p/pr/14735http://1697.hostedpr.com/p/pr/14321The highest risks and rewards are clearly centered in the land acquisition and development arena. Land is the first development ingredient impacted by economic cycles as is painfully obvious in today’s residential markets. And even in good times, land is burdened with costs and seldom offers income.http://1697.hostedpr.com/p/pr/14322Within the past five years, student housing has been promoted to a favorite property type and subcategory within the multi-family real estate finance sector. Historically, this entrepreneurially-driven industry was controlled by local/regional players. Now, more national firms are acquiring and aggregating student housing portfolios – especially in major university campuses. This sector promises dynamic growth as many institutions are severely in need of affordable and available student housing within near campuses. Furthermore, this sector is not as closely tied to the current residential market malaise as higher education is in strong demand and limited facilities are available.http://1697.hostedpr.com/p/pr/14320Despite real estate debt market turmoil, overall equity yields for income properties remain near 40-year-lows. While bargain-hunting abounds in the residential arena -- particularly new condominium developments in overbuilt metro areas, investors still crave for high-quality, income properties. While the mode is cautious and selective, funds are readily available as public funds, private capital, foreign buyers and tax-exchange players aggressively hunt for Class-A properties -- assets with strong cash flow and upside potential.http://1697.hostedpr.com/p/pr/14088Medical Office Buildings (MOBs) are one of the more exciting development and acquisition opportunities within the income-property investment arena. However, given today's uncertain financing market conditions, these properties require more underwriting knowledge than other conventional property types (e.g. apartment, retail and office properties). http://1697.hostedpr.com/p/pr/14089