Ed's Blog

The good news continues. According to a recent article in the San Francisco Chronicle  (May 21, 2010), the median priced home in San Francisco, Oakland, San Jose, and other Bay Area communities continues to rise in value. In fact, the median price of resale homes jumped a whopping 30% in April 2010 compared with the prior year. While! Who knows, at this rate, maybe we'll get back to the pre-crash values before I die! (I kid, I kid!)

Whether you are looking for a mortgage to purchase a San Francisco Bay Area property, or a refinance, rising values can help you qualify for the loan you want.

If you need some help figuring out what you can afford, whether you should buy now, or whether it makes sense to refinance, contact us. We'll be glad to give you our viewpoint and help you figure out what's right for you.

Say what? It used to be said that when the US catches a cold, the world gets the flu due to the huge importance of the health of our economy to the health of economies around the globe.

But now it seems that the world has been stood on its head. Problems in the tiny economy of Greece are having huge repercussions throughout the world, including the US.

Welcome to the brave new world, the global economy, the New World order, or whatever you want to call it.

I call it the jitters. People are worried. Worried about jobs, the economy, deficits, taxes, and more.

What does it all mean?

Glad you asked. In my corner of the world's hit means great interest rates, bargain real estate prices, cautious underwriting, conservative lending guidelines and more.

It all adds up to an opportune time to refinance mortgages, and/or renegotiate debt, purchase a home, or perhaps purchase investment property. So long as you have stable income, good credit, money in the bank, and can qualify for a loan!

If you need help analyzing your position and opportunities, give us a call at 415-406-2330 or send me an e-mail at Ed@smithcraine.com. We'll be glad to help you think strategically about your real estate finances.

At Smith Craine Finance, we have started to witness a more reasonable criterion for both commercial real estate debt and equity in the last 45 days. The focus for capital continues to be top tier product, strong sponsorship, and solid location with reasonable price points or at the other side of the spectrum, discounted distressed assets that can produce higher yields that price in risk and justify the cost of funds. Presently, there is much interest in the $10 million to $20 million investment range for stabilized assets while we all await the expected increase in discounted notes and REO assets.

We encourage you to call Smith Craine to discuss both immediate transactions as well as your future business plans so we can align you with the newest and best debt and equity sources that match your needs.

Please contact us at your convenience to discuss your commercial real estate transaction with us.

• All Multifamily Financing Including HUD/FHA
• Industrial, Retail, Office Acquisition Financing
• Mezzanine Debt

• Bridge Financing
• Preferred Equity
• Joint Venture Equity
• Structured Financing
• Distressed Asset Acquisitions
• Distressed Note Purchases
• REO Acquisitions
• Discounted Performing/non-Performing Note Purchases
• Note Buybacks
• Deal Recapitalizations
• Fractured Condo Projects
• Partially Completed Construction Projects
• Partner Buyouts
• Select Development Financing
• Cash-Out Refinance
• Asset Repositioning

Whether or not you believe the economy is on the rebound, there are clearly some indications that the housing market is recovering, especially here in San Francisco. And well, if you’re of the belief that the economic collapse was –at least partly, if not mostly- to blame for the meltdown of our economy, then perhaps the housing recovery may be the precursor to a national economic recovery.

Consider these small but significant items of interest.

1. The FED has decided to keep interest rates the same. Low. Very low in fact.

2. Mortgage rates remain incredibly low. 15 year fixed at less than 5%? 30 year fixed at right around 5%? Jumbos under 6%? Wow! Who would have believed these low rates would still be here?

3. Home values are climbing again. In fact, here in the Bay Area according to several different studies, home prices here are up 12% year over year. (Of course I know that they are still down from a few years ago, but progress toward recovery of values is still welcome, even if it’s “only” 12% at a time).

4. The stock market is fairing pretty well in spite of Europe’s debt woes. Let’s hope the problems don’t rattle investors too much.

5. Foreclosures continue to decline. In the first quarter of 2010, foreclosures were down more than 4% from the previous quarter, and down a whopping 40% from the same time last year. I know there’s “shadow inventory” out there, but this is still good news.

I don’t know about you, but to me these items signify a reemerging consumer confidence in our housing market. And that’s good news for the economy as a whole.

Till next time!