Recently Overheard at Dinner Parties…
“I got caught in the housing crisis, so I’m not going to buy now unless it is a steal”
[Reality: They can’t afford to buy anything, and most of the low hanging fruit is gone anyway]
“I’m downsizing because I don’t need the space”
[Reality: Their income is not close to what it was, and their association fees are killing them]
“I’m nervous because interest rates have been so volatile”
[Reality: They lost most of their equity in 2008-09 and are scared to death of borrowing – even though rates remain at historical lows]
“As soon as we sell our home, we will finance the purchase of a retirement home in Florida”
[Reality: They will use their net proceeds to pay cash for the Florida condo]
Lately, when attending seminars, dinner functions, charity fundraisers, and other networking events, I hear a lot of people in real estate finance say: “It’s crazy busy right now”. But those are the people I don’t know that well. They stumble a little when I ask about the number of real estate loans they have closed and funded. Unless they are focused on helping people who require portfolio loans due to prior events that have detrimentally affected their credit (and there is a lot of this business right now), volumes on conventional financings are way down and banks are shedding staff as a result.
