The Opportunity to Invest in Distressed Commercial Properties Is Here Now, As Well As Going Forward!

As of the first quarter of this year, banks carried more than $10 billion in troubled multifamily loans. The bulk of these distressed bank loans currently mature by the end of 2012. How many of these distressed loans will come to market, though is anybody's guess. The trend among banks has been to extend the maturity date out on many of the loans, giving banks and borrowers the first opportunity to recognize a return. Will this happen again?

Today's owners of distressed properties are still having trouble working out loan modifications with the banks. Will this be corrected and allow the current owners to make a run at turning an unprofitable venture into a profitable one?

Distressed loans held in commercial mortgage-backed securities (CMBS) present another huge potential of opportunity. CMBS delinquency rates have been, by far, the worst among all lenders. Special servicers -- those firms hired by CMBS trustees to manage problem loans -- are currently dealing with about $135 billion to $140 billion in distressed loans.

The amount of those loans coming to maturity will be spread out over the next seven to eight years, with the bulk of loan maturities peaking in 2017. Multifamily and office loans make up the two largest amounts of CMBS distress at about $35 billion each; retail totals about $30 billion; and hotels, $28 billion. Distressed bank loans on industrial properties made up the smallest portion at just $5 billion.

Investors like ourselves at CommercialCapitalFund.com will be searching the country for years to come in order to find the best deals on these distressed commercial properties. Naturally, there will be alot of competition out there, but fortunately or unfortunately, depending on which side you are on, there will be plenty of good deals for everyone.