Friday, July 31, 2009

Jim the Realtor

If you are not acquainted with Jim, you should be. His entire collection can be found here. Today focuses on Commercial Real Estate or CRE is how the finance types will describe it.

Now there are some caveats, Jim is a good ole boy from Southern California, he uses a hand-held digital camera and drives while shooting. He's a little dry but he has a fascinating amount of knowledge about sales tactics in commercial and residential real estate. The only problem is you have to wait for the nuggets to come, as there is no editing and this is all done via stream of consciousness. I hope you will enjoy but also be fearful of the next wave of writedowns on the banks balance sheets.

Anecdotally, I heard of a bank holding a CRE securitization pool at 95 cents on its books but through some accounting wrangling was able to sell it for 35 cents on the dollar and hold the loss of its books for a awhile, I presume it works as a lease buyback, where the bank stills own it in all but name. If I find the story I will post it.

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