Ep #69: How to capitalize on the wave of distressed CMBS loan maturities – with Salvatore Buscemi

sal buscemiThis week we’re going to speaking with real estate and investment expert, Salvatore Buscemi. The topic of discussion for today’s show is regarding the wave of CMBS loan maturities that are taking place right now and will continue over the coming years and how we as investors can find opportunity in these distressed commercial assets.

To provide you a clearer picture of why this represents an exciting opportunity, these CMBS loans are typically 10 year terms which means most of these loans coming due were originated during the peak real estate markets of 2005-2008 before the financial crash of 2008 and majority of them were very high leverage loans (as high as  90% LTV) and a large quantity were interest only terms which means they’re are upside down in value and would require a large amount of cash from the borrower in order to get out from underneath it.

Sal also is giving a free copy of his book “making the yield” to the first 20 listeners who go to the website and register www.MakingTheYield.com 

Here’s What You’ll Learn

  • Why CMBS loan maturities represent a great opportunity in the coming years for investors
  • What Sal and his team are doing to prepare for capitalizing on these distressed deals
  • How to track down these distressed notes by going direct to the lenders
  • Why he feels that CMBS loans between $2 million & $30 represent the best opportunities for the small to mid-size non-institutional investors
  • The reason he is focusing on secondary and tertiary markets
  • Why it’s not as simple as just restructuring these loans similar to what would happen with a portfolio loan
  • Why he feels the sweet spot for banks that are holding these types of distressed assets are the ones that have between $2 & $5 billion in assets and why that’s the niche you need to focus on.
  • The person we need to speak with at the bank in order to gain access to these distressed deals.
  • Why he feels that there are many markets that are already overheated which will ultimately represent a correction sometime in the coming years and why we need to be cautious as investors
  • And much more

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