The new home sales data is in, and it’s slightly less depressing than expected, falling 2.1% to an annualized 319,000 in May. Analysts were anticipating 310,000, a more pronounced decline in home buying in the U.S. The numbers are still showing that the housing industry is struggling to recover from its bottom. Federal Reserve chairman Ben Bernanke said in a press conference yesterday that the U.S. economy is facing a hurdle with a weak housing market and still-high unemployment staving off growth.

For almost a decade Arlington Richfield has been one of the most trusted and respected private capital firms in the country with over One Billion plus, annually in processed transactions. This column addresses the approach and methodology for working within the private capital markets.

You can contact Arlington Richfield at 248-246-2240 24/7.

Arlington Richfield is a private capital group based in Birmingham Michigan. They specialize in facilitating financing for complex real estate transactions nation wide. Their company web site is http://www.arlingtonrichfield.com

News Article:

As cap rates begin to stabilize, investors are showing more confidence in the commercial real estate market than at any point in the last two years, a new report from New York-based PricewaterhouseCoopers shows.

Although transactions are expected to be lower in 2010 than at the peak of the market, the report released today projects marked improvement over 2009, with the apartment sector leading the recovery effort.

As cap rates become more attractive to investors, that trend is expected to help stabilize commercial property values. Survey participants project that over the next six months, overall cap rates will hold steady in 19 of the 30 markets surveyed. Last quarter, the survey projected stabilization in only two markets.

Commercial real estate fundamentals also are expected to moderate in the remainder of this year. Across property types, occupancy and rental rates have deteriorated significantly in the past 24 months, but the declines are not expected to be as severe in 2010 as they were last year, according to the survey.

http://www.prlog.org/10582554-arlington-richfield-apartment-sector-rising-property-sales-in-2010.html 

With all the issues with current recession, and the investment opportunities it provides. It’s more important than ever to align yourself with an experienced and knowledgeable company. Arlington Richfield specializes in all types commercial real estate financing for their clients.

They are based in Birmingham Michigan and can be contacted at 248-246-2240 or visit their web site at http://www.arlingtonrichfield.com

Investors in 2010 expect to find commercial real estate opportunities priced at a fraction of past values. Yet despite investor demand and a flood of distressed assets, deal volume is low.

The scarcity of trades is partially due to the complexity of distressed deals. Real estate underwriting methods and terms that bidders offered in the mid-2000s offer little assistance to investors attempting to purchase a whole loan or a lender’s real estate owned (REO) property.

Distressed opportunities require expertise beyond a grasp of real estate fundamentals. The investor may need to consider non-traditional transaction structures, financial instruments, creditor rights and the potential cost of foreclosure and other proceedings.

Even with multidisciplinary expertise, how can investors decide which deals to pursue? Let’s consider the most accessible and readily understood opportunities: REO and whole loan sales.

Of today’s lender-controlled offerings, REO deals are the most straightforward for a real estate investor because they involve a direct property sale. In practice, investors’ REO purchase offers often receive a lukewarm response.

Banks have been inundated with bids for their REOs. More importantly, lenders say buyers frequently attempt to renegotiate price midway through a deal, or are unable to obtain equity or financing.

A successful REO buyer demonstrates a commitment and ability to close rapidly, and investors are learning that offering concrete terms can help to push their bid to the top of the seller’s list.

The takeaway from this and similar transactions: Lenders prefer certainty of closing, and certainty increases with short due diligence and all-cash terms.

Investors are increasingly focused on whole loan purchases as a path to obtain commercial real estate. As the lender on a defaulted loan, an investor may be able to foreclose and take title. Investors must realize that the purchase of a whole loan doesn’t include the collateral’s title, guaranty title or rent collection.

A whole loan purchase requires specific underwriting methods and transaction considerations. Bidders are not allowed to contact borrowers or tenants, for example. Investors must consider state foreclosure laws, bankruptcy risks, rights of other lien holders and abilities to assert rights to collect rents.

Is the investor prepared to hold the note if the borrower files for bankruptcy prior to a foreclosure sale date? If the borrower cures and brings a loan current, is the investor prepared to collect payments and forego ambitions of owning the collateral? Should value be afforded to corporate or personal guarantees in the purchase of the loan?

Most experienced lenders will rule out loan purchase offers with due-diligence periods suited to title transactions, which may allow 30 days of due diligence and another 20 days to close.

Lengthy terms highlight the investor’s inexperience with loan purchases, which typically limit due diligence to document and title review.

The buyer of a loan portfolio on office property collateral recently distanced itself from other bidders by placing the entire purchase amount in escrow with the bid submittal, demonstrating their ability to close. Again, due diligence was less than one week.

As investors conform to lender standards on their bids and focus on deals with the highest probability of closing, they will dramatically increase their acquisition success in 2010 and beyond.

http://www.prlog.org/10584478-how-are-investors-preparing-to-buy-distressed-properties-arlington-richfield-analysis.html 

Arlington Richfield is a trusted capital source for your Debtor in Possession Financing (DIP) needs.

The credit crisis has made it difficult for companies to borrow throughout the economy. It should come as little surprise then that the constriction in the credit markets is hitting Chapter 11 debtors in possession as well.

Adding to the challenge is the amount of prepetition secured financing, including second lien debt, that many companies took on over the past few years when financing was easier to get.

A company that has already encumbered its assets with secured debt may have little or no unencumbered assets to offer a DIP lender as collateral.

Arlington Richfield predicts that fewer companies in Chapter 11 will be able to find new lenders to provide DIP financing, giving the DIP’s existing lenders the advantage in negotiating DIP financing terms such as interest rate and fees.

Alternative sources of DIP financing may be able to be found in certain circumstances. In some cases, the buyer in a Section 363 asset sale may provide DIP financing to bridge to the closing of the sale. However, such limited purpose financing is not a substitute for the type of DIP financing generally needed for a successful reorganization.

Cash is king in bankruptcy and DIP financing is often a key source of that cash. Until the credit crisis subsides and DIP financing becomes more available, companies may find it more difficult to reorganize in Chapter 11.

You can contact Arlington Richfield at 248-246-2240 anytime some is available to take your call 24/7. http://www.arlingtonrichfield.com

http://www.prlog.org/10591000-arlington-richfield-debtor-in-possession-financing-loans.html

Successful investors and intermediaries are turning to Arlington Richfield, a boutique professional services firm that utilizes a private banking approach for complex commercial real estate and financial transactions.

We process over One Billion Dollars in transactions annually and are well known throughout the commercial real estate industry for achieving the highest standards of excellence on behalf of clients and capital sources. It is a circle requiring superiority in relationships, creativity, performance, and results. We never vary from the high standards which we embrace.

Professional Services Approach:

Every transaction, every development has its unique challenges. Creatively and diligently facing these opportunities sets us apart. The resourcefulness of our professionals can enhance every transaction, ensuring a successful and streamlined process. That’s our reputation, and we are committed to continue to hone our innovative expertise every day.

Area’s of Practice:

Arlington Richfield provides quality professional services. Our practice encompasses the ensuing areas for complex financial transactions.

Debtor in Possession Financing

The Purchase of Debt, Judgments and Liens

Acquisition of Distressed Commercial Real Estate

Management of Multifamily and Office Assets

Financing for All Types of Commercial Real Estate Nation Wide

We have a minimum loan amount of $1,500,000 with no maximum. Our average transaction size is $10,000,000.

Financing Methodology:

The need for sound best business practices in today’s tight credit markets can be critical in obtaining the financing that you need. Arlington Richfield is totally committed to continuous improvement of its process and performance excellence.

We have developed a fast track process that starts by utilizing a Project Intake Form (PIF) that prospective clients must complete prior to consideration. Each of these unique Project Intake Forms is customized not only to a specific property type, but also to the financing requirements. This really separates Arlington Richfield from other firms, that utilize a one size fits all application and process.

Once the PIF and supporting documentation is received,  it is reviewed by a senior analyst to determine if the transaction makes economic sense for the client and that the client has professional representation and can perform during the formal due diligence and underwriting process.

This best practices approach enables the staff of Arlington Richfield to quickly asses the client’s needs through a process that first looks at the transaction fundamentals which encompass three areas: client sponsorship, asset valuation and then the exit strategy. This enables our analysts to quickly drill down into a complex financial transaction to make a determination to move forward to the next step.

Engaging With Arlington Richfield:

Arlington Richfield has a very detailed review and analytical process that ensures that any transaction that we engage on is of high quality and that the clients adhere to our professional and ethical standards.

When a prospective transaction warrants further consideration. A conference call is arranged with the client, their representative(s) and Arlington Richfield’s company President for a deeper review. The findings from the conference call will be submitted to our loan committee for additional analysis.

If our loan committee determines that there is a viable transaction a Letter of Interest will be issued, then an additional conference call will be scheduled with the client and their representative(s) to further review the transactions details. Then make a determination if the client’s transaction warrants engagement.

We do not issue Letters of Interest on all transactions.

Professional Performance:

Arlington Richfield professionals are dedicated to rendering the best service possible throughout the life of each transaction. The need for sound best business practices never decreases or vanishes.

Sincerely.

Frank L. Vogel III

CEO & President

Arlington Richfield Inc

725  South Adams

Suite 264

Birmingham MI 48009

248-246-2240

http://www.arlingtonrichfield.com