The growing wave of U.S. hotels defaulting on their debt has spawned a growth industry for companies that oversee and operate hotels seized by lenders.
A Tishman Speyer-led partnership is in default on debt tied to a large office portfolio in the Washington area. Tishman itself isn’t at risk.
CNBC’s Senior Futures Editor, Albert Bozzo wrote an article today discussing the dichotomy of housing’s budding rebound and the overall real estate market. Mr. Bozzo lists items such as government intervention, evidenced in the $8,000 tax credit for first time home buyers, as reasons for some apparent life in the housing market. The overall housing market (which includes commercial, retail, service industries, suppliers and so on) remains in a fiscal slump due to the recession at large. He subsequently identifies an expansion of the government tax credit program as a driver for continued growth in housing sales. I can see Mr. Bozzo does not understand basic macroeconomic theory.
Memphis, TN is an extremely hot market for rehabs, flipping and rentals. We have been successful in breaking into the Memphis RE market and have done a couple of deals there. That place is a veritable goldmine! Check the video of our recent deal that was purchased for $38,000, fixed up with about $3,600 of capital. And now it is about to be flipped before the end of the week.
Our strategy has been to purchase only occupied properties. This has worked out great! This particular one was able to have a tenant move in within 3 weeks!
P.S. – This video was shot over 6 weeks ago. Don’t bother calling!