Author Topic: Time for some proper due diligence/ independent auditing in our communities  (Read 218013 times)

Offline liosac

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I think 5% loss they’re willing to take is 5% on the current value of the loan, not 5% of interest.

If the loans are a loss to them at current rates, isn’t that true regardless of whether they keep them or sell them?
Technically the loans are not a loss to them if they hold them on their books to term as opposed to marking them to market. Offloading them might make sense if they can do so at a small discount. If you have a million dollar loan outstanding for another 36 months at 3.5 interest only, (you’re  total take would be $1,105,000) and you are able to offload the loan at 950k and lend the funds out again in a more secure sector of the market at 6.5 you actually made money ($1,135,250) and made a good strategic decision to reposition your portfolio (ignoring the costs associated with making the new loan and disposing of the old. The longer the term and the larger the spread, the less costs become a factor.) That doesn’t smack of desperation to me.

« Last Edit: June 06, 2023, 09:22:49 AM by liosac »

Offline S209

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A friend in the industry told me the numbers being spread are way over exaggerated.
I am hearing 32M which means 50M is exaggerated but not in a way that changes the story
Quote from: YitzyS
Quotes in a signature is annoying, as it comes across as an independent post.

Offline avromie7

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I am hearing 32M which means 50M is exaggerated but not in a way that changes the story
Do you have any reason to believe 32M is accurate?
I wonder what people who type "u" instead of "you" do with all their free time.

Offline Moshe123

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Legit businesses that need to sometimes drei are choking now because of unavailability of cash. The non-legit businesses lost all their oxygen and are crumbling.

Offline yoohoo

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Do you have any reason to believe 32M is accurate?
there’s no reason the believe any number. No one knows forsure aside for the man himself. Some claim to know it’s north of 100m.


Offline yoohoo

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Legit businesses that need to sometimes drei are choking now because of unavailability of cash. The non-legit businesses lost all their oxygen and are crumbling.
this MCA scheme was happening well before the cash squeeze started hence it crashing

Offline liosac

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Legit businesses that need to sometimes drei are choking now because of unavailability of cash. The non-legit businesses lost all their oxygen and are crumbling.
Hence the cash call on a commercial property in the Lakewood area. Won’t be the last.

Offline S209

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Do you have any reason to believe 32M is accurate?
Not particularly other than it’s from someone in the industry who claims to know specifics
Quote from: YitzyS
Quotes in a signature is annoying, as it comes across as an independent post.

Offline ari3

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The last paragraph is puzzling. Selling the loans at a 5% discount isn’t really selling at a loss out of desperation. A loan made at 3.5% is simply worth less than full value today even if there is no pressure to sell, since it is paying well under the going rate of interest. The same would be true if the bank holding your home mortgage at 2.5% tried to sell the note today.  Actually, if it is being sold in a 6.5% environment it should sell at far more than a 5% discount unless it has a really short maturity. The fact that the debt is discounted is a function of interest rates, not the health of CRE.
Pacwest sold of a $2.4 billion portfolio of construction loans a few weeks ago for a $200 million discount (a bit over 8%). The buyer has now turned around and resold most of those loans (I don't think the price was disclosed but I'm sure they made a nice profit).

Pacwest was in a unique situation as they needed to raise capitol quickly not to end up like First republic so that doesn't necessarily reflect on the real value or risk associated with those loans.

Offline liosac

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I am hearing 32M which means 50M is exaggerated but not in a way that changes the story
Those somewhat involved are calling it 40 mil but I don’t know if anyone has the exact dollar amount right now.

Offline dealfinder11

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I don’t know if anyone has the exact dollar amount right now.

Including the GP.......

Offline MnM1130

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50 million - MCA Ponzi. From what i heard, all from the same community in TR. Really hope it's not true.
Unfortunately it's true.
I know first hand.
Not outing myself here.. But it doesn't look very good for many people.


Offline ari3

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Those somewhat involved are calling it 40 mil but I don’t know if anyone has the exact dollar amount right now.
40 mil what? 40 Mil embezzled? 40 mil worth of deals that are compromised? 40 mil in default?

Offline yomo

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Unfortunately it's true.
I know first hand.
Not outing myself here.. But it doesn't look very good for many people.

Totally not true.
#Fakenews
I live near this big real estate one (R). The others are not in the same neighborhood.

Offline liosac

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Totally not true.
#Fakenews
I live near this big real estate one (R). The others are not in the same neighborhood.
I think you misread. No one said all 3 stories are from the same neighborhood.

Offline elimmm

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40 mil what? 40 Mil embezzled? 40 mil worth of deals that are compromised? 40 mil in default?
has this been confirmed?

Online AsherO

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Totally not true.
#Fakenews
I live near this big real estate one (R). The others are not in the same neighborhood.

You are replying to someone who was posting about MCA, not about real estate.
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Online AsherO

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40 mil what? 40 Mil embezzled? 40 mil worth of deals that are compromised? 40 mil in default?

Especially since if it’s multiple legal entities and separate loans, then they all fall into arrears/delinquency, default, foreclosure proceedings, foreclosure etc. at different points in time.
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Offline liosac

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One of the major Lakewood choshen mishpat poskim who is the address for a lot of shaalos that arise from syndicated deals, including from workers who want to know what information they are allowed to, or obligated to reveal when they become aware of it, says that skimming or similar breach of trust issues are endemic and absolutely widespread among syndicators and not merely an isolated occurrence. Pretty crazy.

Offline Afrages6

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One of the major Lakewood choshen mishpat poskim who is the address for a lot of shaalos that arise from syndicated deals, including from workers who want to know what information they are allowed to, or obligated to reveal when they become aware of it, says that skimming or similar breach of trust issues are endemic and absolutely widespread among syndicators and not merely an isolated occurrence. Pretty crazy.
When things were great no one cared..