Great Cover Article in the WSJ today about how Delinquency Rates on Commercial Real Estate Loans are Skyrocketing

On one hand, I'm shocked at the accelerated pace of defaults. I thought we
would see these levels in several months. Not now! On the other hand, this
is what we want. Our main focus is commercial Real Estate in California.
With the amount of delinquencies coming, that translates into lots of distressed
sales in our target markets. There will be many opportunities to pick our
"pitch to hit". My prediction is that we will have two or three times the
amount of inventory to choose from in a short while.

Highlights for the Wall Street Journal article:

• Commercial Real Estate loan defaults have doubled since September
• US Banks could suffer as much as $250bb in commercial r/e related losses in this downturn versus $48bb in the recession of the early 1990's
• Declines in Commercial r/e could be between 35% to 45%
• Of the estimated $154bb in Commercial r/e loans coming due over the next three years, 2/3 may not qualify for refinancing

Read the entire article.

Opportunties are here.

The Stella Capital is seeking prospective real estate investments. As one of the only "100% cash, quick close" buyers in our target market, many real estate brokers are giving us first shot of their inventory. We are finding real estate sellers with numerous reasons to sell, the most prevalent being the inability to refinance current loans. We have also seen many local California bankers reaching out to either sell a discounted note on property or directly sell real estate that they currently own. As cash buyers of real estate we are able to pick and choose the most profitable deals and take advantage of this depressed real estate market.