Jon Winick Speaks at Coleman Webinar

In a July 14 webinar on coping with distressed commercial real estate, Bob Coleman, founder of Coleman Publishing, spoke with Jon Winick, President of Clark Street Capital. In a clip from that presentation, Mr. Winick discusses the needs of banks in working with businesses and how the present selling is into a market with high IRR requirements. Many of those who bought into CRE in the last cycle are now distressed, and one problem they are seeing is over valuation based on the current regional market. Mr. Winick gives an example where the valuation is based on an assumption that is completely at odds with the reality of the situation.

This is an interesting overview in a short video that shows why property prices have dropped, banks are afraid of commercial real estate and what buyers, both owner-users and investors, should be using as a measuring stick to price properties.  There is more room for prices to fall, potentially 25% from present levels. Present levels are up to 40% lower than the market peak in 2007.  Let buyers beware.

 

 

Craig G. Francis is the owner of Francis Financial and The SBA Loan Store. He has been a top producer of SBA Loans since 1981, and has worked with Dun & Bradstreet and Bank of Commerce. Craig Francis has the expertise to steer clients through the often confusing rules and regulations associated with SBA Loans, having helped over 2,000 businesses acquire over a billion dollars in loans. He can be contacted through CraigGFrancis.com, SBALoanStore.com, on LinkedIn, or at 888-666-9722.