Private Lender by AAPL

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Chairman’s Corner

Banker’s Report Tales from the Other Side

By Larry Muck

R

ecent conversations with lending professionals have centered on declining pricing in some overworked markets, particularly California. As prices continue to rise in that state’s major cities, I think we can see the beginning of a capping out of values or at least a slowing down of increases. In the Bay area, prices are defying gravity. It really is only a matter of time before we see some lenders overreach. Most of the lenders say that they continue to actively lend but that there is an increasing level of competition. They have increased vigilance and many are at the point where they would rather walk from a deal than accept current pricing.

at a rate of 6 month Libor + 500bps, or roughly 5.5%. They will do an 80% advance rate on the note amount and are committing funds for up to 3 years. Other money is flooding in that including large Wall Street firms that are providing long term financing for portfolio loans on long term holds. The rates are highly attractive and it would seem that there is an unlimited supply. Wall Street must be very well hedged or they think they can get the Fed to hold down interest rates forever.

This pressure is being caused by the flood of funding being forked over by the capital markets to the largest players. I met one of those capital providers in Boca at the IMN Conference. His firm is providing funding to lenders

Feel free to email me at lmuck@ aaplonline.com and check our radio show, Community Investor Radio, on BlogTalkRadio. com. To your health and success.

We are avoiding the needed event that will allow us to profligate printing of fiat and help insure a return to America.

cathartic quit the currency a vibrant

aaplonline.com

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