[Bugs]

What I’ve been reading from the realty agents here on this site is that there has been an uptick in interest, and that the best homes in the most desirable areas have been generating multiple offers. I don’t interpret those comments as meaning that any of these guys think the market is getting close to a reversal – they’re just reporting the beginnings of what looks (to me) to be a spring bounce.

Bear in mind that CV and 4s are just entering the initial phase of declines, similar to the gentle declines that preceded the free fall that the outlying areas entered into starting in late 2007. These primo areas seem to running 1-2 years behind the outlying areas. Their time will come. I’ve seen it happen before and based on my experience I assume it will happen again. The subdivision homes may not bottom out at $100/SqFt but I have no reason to believe they’ll stop before passing $200/SqFt.

[Bugs]

What I’ve been reading from the realty agents here on this site is that there has been an uptick in interest, and that the best homes in the most desirable areas have been generating multiple offers. I don’t interpret those comments as meaning that any of these guys think the market is getting close to a reversal – they’re just reporting the beginnings of what looks (to me) to be a spring bounce.

Bear in mind that CV and 4s are just entering the initial phase of declines, similar to the gentle declines that preceded the free fall that the outlying areas entered into starting in late 2007. These primo areas seem to running 1-2 years behind the outlying areas. Their time will come. I’ve seen it happen before and based on my experience I assume it will happen again. The subdivision homes may not bottom out at $100/SqFt but I have no reason to believe they’ll stop before passing $200/SqFt.

[Bugs]

What I’ve been reading from the realty agents here on this site is that there has been an uptick in interest, and that the best homes in the most desirable areas have been generating multiple offers. I don’t interpret those comments as meaning that any of these guys think the market is getting close to a reversal – they’re just reporting the beginnings of what looks (to me) to be a spring bounce.

Bear in mind that CV and 4s are just entering the initial phase of declines, similar to the gentle declines that preceded the free fall that the outlying areas entered into starting in late 2007. These primo areas seem to running 1-2 years behind the outlying areas. Their time will come. I’ve seen it happen before and based on my experience I assume it will happen again. The subdivision homes may not bottom out at $100/SqFt but I have no reason to believe they’ll stop before passing $200/SqFt.

[Bugs]

What I’ve been reading from the realty agents here on this site is that there has been an uptick in interest, and that the best homes in the most desirable areas have been generating multiple offers. I don’t interpret those comments as meaning that any of these guys think the market is getting close to a reversal – they’re just reporting the beginnings of what looks (to me) to be a spring bounce.

Bear in mind that CV and 4s are just entering the initial phase of declines, similar to the gentle declines that preceded the free fall that the outlying areas entered into starting in late 2007. These primo areas seem to running 1-2 years behind the outlying areas. Their time will come. I’ve seen it happen before and based on my experience I assume it will happen again. The subdivision homes may not bottom out at $100/SqFt but I have no reason to believe they’ll stop before passing $200/SqFt.

[Bugs]

What I’ve been reading from the realty agents here on this site is that there has been an uptick in interest, and that the best homes in the most desirable areas have been generating multiple offers. I don’t interpret those comments as meaning that any of these guys think the market is getting close to a reversal – they’re just reporting the beginnings of what looks (to me) to be a spring bounce.

Bear in mind that CV and 4s are just entering the initial phase of declines, similar to the gentle declines that preceded the free fall that the outlying areas entered into starting in late 2007. These primo areas seem to running 1-2 years behind the outlying areas. Their time will come. I’ve seen it happen before and based on my experience I assume it will happen again. The subdivision homes may not bottom out at $100/SqFt but I have no reason to believe they’ll stop before passing $200/SqFt.

[Bugs]

jpinpb,

If I remember correctly you need a construction lender that can deal with a rehab scenario, right? If so, you’re probably looking for one of the community banks. As in not Bank or America or Wells Fargo or Washington Mutual. You want a lender that’s headquartered in this region. A short list that includes, but it not limited to:

First Pacific Bank
Neighborhood National Bank
Community Commerce Bank
Seacoast Commerce Bank
Pacific Western Bank
First Business Bank
Home Investment Bank

Etc., etc. You can look in the Yellow Pages. I know at least half of the above would do a deal like this because I’ve appraised such properties for them before.

Expect to pay more in interest rates and deal with lower loan-to-value maximums. As one of the other posters in the other thread already noted, a rehab scenario in a declining market involves some additional risks.

[Bugs]

jpinpb,

If I remember correctly you need a construction lender that can deal with a rehab scenario, right? If so, you’re probably looking for one of the community banks. As in not Bank or America or Wells Fargo or Washington Mutual. You want a lender that’s headquartered in this region. A short list that includes, but it not limited to:

First Pacific Bank
Neighborhood National Bank
Community Commerce Bank
Seacoast Commerce Bank
Pacific Western Bank
First Business Bank
Home Investment Bank

Etc., etc. You can look in the Yellow Pages. I know at least half of the above would do a deal like this because I’ve appraised such properties for them before.

Expect to pay more in interest rates and deal with lower loan-to-value maximums. As one of the other posters in the other thread already noted, a rehab scenario in a declining market involves some additional risks.

[Bugs]

jpinpb,

If I remember correctly you need a construction lender that can deal with a rehab scenario, right? If so, you’re probably looking for one of the community banks. As in not Bank or America or Wells Fargo or Washington Mutual. You want a lender that’s headquartered in this region. A short list that includes, but it not limited to:

First Pacific Bank
Neighborhood National Bank
Community Commerce Bank
Seacoast Commerce Bank
Pacific Western Bank
First Business Bank
Home Investment Bank

Etc., etc. You can look in the Yellow Pages. I know at least half of the above would do a deal like this because I’ve appraised such properties for them before.

Expect to pay more in interest rates and deal with lower loan-to-value maximums. As one of the other posters in the other thread already noted, a rehab scenario in a declining market involves some additional risks.

[Bugs]

jpinpb,

If I remember correctly you need a construction lender that can deal with a rehab scenario, right? If so, you’re probably looking for one of the community banks. As in not Bank or America or Wells Fargo or Washington Mutual. You want a lender that’s headquartered in this region. A short list that includes, but it not limited to:

First Pacific Bank
Neighborhood National Bank
Community Commerce Bank
Seacoast Commerce Bank
Pacific Western Bank
First Business Bank
Home Investment Bank

Etc., etc. You can look in the Yellow Pages. I know at least half of the above would do a deal like this because I’ve appraised such properties for them before.

Expect to pay more in interest rates and deal with lower loan-to-value maximums. As one of the other posters in the other thread already noted, a rehab scenario in a declining market involves some additional risks.

[Bugs]

jpinpb,

If I remember correctly you need a construction lender that can deal with a rehab scenario, right? If so, you’re probably looking for one of the community banks. As in not Bank or America or Wells Fargo or Washington Mutual. You want a lender that’s headquartered in this region. A short list that includes, but it not limited to:

First Pacific Bank
Neighborhood National Bank
Community Commerce Bank
Seacoast Commerce Bank
Pacific Western Bank
First Business Bank
Home Investment Bank

Etc., etc. You can look in the Yellow Pages. I know at least half of the above would do a deal like this because I’ve appraised such properties for them before.

Expect to pay more in interest rates and deal with lower loan-to-value maximums. As one of the other posters in the other thread already noted, a rehab scenario in a declining market involves some additional risks.

[Bugs]

Q007,

Some of my clients are telling me that a few of the commercial banks were behaving like the residential lenders – selling their loans off to investors and generally running very loose with their due diligence.

I never did much – if any – business with the really agressive commercial lenders because our philosophies with respect to values never meshed. I’d do an appraisal for one and then I’d never hear from them again, most likely because my value didn’t meet their “needs”. Everywhere else the lending officers were acutely aware that they would have to live with any non-performing loans, so they avoided making weak loans.

But yeah, there are a few commercial lenders who are at substantial risk, in part because of their due diligence criteria and in part because of their eagerness to write loans in markets with horrific price increases that far outpaced rent increases. There’s a few of these lenders who are already dealing with REOs and the commercial meltdown hasn’t really started in earnest yet.

[Bugs]

Q007,

Some of my clients are telling me that a few of the commercial banks were behaving like the residential lenders – selling their loans off to investors and generally running very loose with their due diligence.

I never did much – if any – business with the really agressive commercial lenders because our philosophies with respect to values never meshed. I’d do an appraisal for one and then I’d never hear from them again, most likely because my value didn’t meet their “needs”. Everywhere else the lending officers were acutely aware that they would have to live with any non-performing loans, so they avoided making weak loans.

But yeah, there are a few commercial lenders who are at substantial risk, in part because of their due diligence criteria and in part because of their eagerness to write loans in markets with horrific price increases that far outpaced rent increases. There’s a few of these lenders who are already dealing with REOs and the commercial meltdown hasn’t really started in earnest yet.

[Bugs]

Q007,

Some of my clients are telling me that a few of the commercial banks were behaving like the residential lenders – selling their loans off to investors and generally running very loose with their due diligence.

I never did much – if any – business with the really agressive commercial lenders because our philosophies with respect to values never meshed. I’d do an appraisal for one and then I’d never hear from them again, most likely because my value didn’t meet their “needs”. Everywhere else the lending officers were acutely aware that they would have to live with any non-performing loans, so they avoided making weak loans.

But yeah, there are a few commercial lenders who are at substantial risk, in part because of their due diligence criteria and in part because of their eagerness to write loans in markets with horrific price increases that far outpaced rent increases. There’s a few of these lenders who are already dealing with REOs and the commercial meltdown hasn’t really started in earnest yet.

[Bugs]

Q007,

Some of my clients are telling me that a few of the commercial banks were behaving like the residential lenders – selling their loans off to investors and generally running very loose with their due diligence.

I never did much – if any – business with the really agressive commercial lenders because our philosophies with respect to values never meshed. I’d do an appraisal for one and then I’d never hear from them again, most likely because my value didn’t meet their “needs”. Everywhere else the lending officers were acutely aware that they would have to live with any non-performing loans, so they avoided making weak loans.

But yeah, there are a few commercial lenders who are at substantial risk, in part because of their due diligence criteria and in part because of their eagerness to write loans in markets with horrific price increases that far outpaced rent increases. There’s a few of these lenders who are already dealing with REOs and the commercial meltdown hasn’t really started in earnest yet.

[Bugs]

Q007,

Some of my clients are telling me that a few of the commercial banks were behaving like the residential lenders – selling their loans off to investors and generally running very loose with their due diligence.

I never did much – if any – business with the really agressive commercial lenders because our philosophies with respect to values never meshed. I’d do an appraisal for one and then I’d never hear from them again, most likely because my value didn’t meet their “needs”. Everywhere else the lending officers were acutely aware that they would have to live with any non-performing loans, so they avoided making weak loans.

But yeah, there are a few commercial lenders who are at substantial risk, in part because of their due diligence criteria and in part because of their eagerness to write loans in markets with horrific price increases that far outpaced rent increases. There’s a few of these lenders who are already dealing with REOs and the commercial meltdown hasn’t really started in earnest yet.

[Author]

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