The Distressed Assets Association is Growing

In June of 2009 3 guys came together to discuss a new venture.

CREDAA is the brainchild of Scott Miller and Warren Samek, both National Commercial Account Executives with Fidelity National Title in Seattle, WA and JW Najarian, formally a commercial lender with Pathfinder Commercial Mortgage and the Founder of The Commercial Real Estate Professional Investor Group out of Los Angeles.

After the real estate and stock markets fell in September of 2008 the founders envisioned a commercial real estate collapse coming as the CRE market tends to lag just around 2 years from the residential market. We believe now that due to the magnitude of the market and residential market crashes, the commercial collapse is happening at a quicker pace.

Due to the TARP plan we believe the banks are holding troubled assets at an alarming rate and furthermore, that if these assets are held too long, that the market recovery will be much longer than it needs to be.

The founders came up with the idea that if the industry had a place to be able to work together at finding solutions, that the recovery could be sped up. The founders believe that an association of industry professionals and investors can, given the most current information, data and education, find and implement solutions that will help banks, brokers, lenders, investors and property owners re-work or get out from under troubled assets with the least losses.

CREDAA was founded in pre-launch on August 20^th 2009.

CREDAA now has twenty two commercial industry and business leaders from many diverse skill sets.

• CREDAA Advisory Board
• CREDAA Mission and Vision Statement
• CREDAA Main Page

It is CREDAA’s goal to provide brokers, lenders, banks, investors and other CRE industry professionals, education, solutions, resources and other support to help them in the disposition, acquisition, valuation and financing of CRE Distressed, Toxic, Unstable or troubled assets and non-performing notes. Become a membership of companies and individuals operating in the commercial real estate, investment, finance, and banking industries.

JW Najarian

CREPIG
CREDAA

FDIC wants to Securitize $36 Billion in Failed Assets

This is seen as a milestone in the government efforts to rid the banking system of troubled assets according to Financial Times.

In the 80′s the FDIC created the Resolution Trust Corporation (RTC) and it is reported that the RTC guidelines may come into play once again.

I have no issue with the RTC plan if managed correctly, but I am concerned about the FDIC selling AAA rated bonds based on these troubled assets (why do we call them assets?).

Securitization seemed to be one of the major issues that got us in this mess. Also the underlying assests could loose value. I am not a financial guru, but although this would be good for the investor (maybe), as they would not take losses; the government still could and that burden, I believe, would now fall on the backs of the already strapped tax payer.

I would really like to hear what you have to say on this.

JW Najarian

CREPIG
CREDAA

Geithner Says Commercial Real Estate Woes Won’t Spark Crisis – What!?

In a recent article on Bloomberg.com Geithner is asked about Commercial Real Estate setting off another banking crises.

Geithner Says Commercial Real Estate Woes Won’t Spark Crisis – By Rebecca Christie and John McCormick

Bloomberg.com

http://www.bloomberg.com/apps/news?pid=20601087&sid=aGGKUQhUZqaQ

The GDP number was in reality flat, without the stimulus attached.

Geithner seems to be talking out both sides of his mouth saying there are signs that things are getting better and in the same sentence saying how hard it will be going forward.

“I don’t think so,” Geithner said, when asked whether commercial real estate could set off another banking meltdown. “That’s a problem the economy can manage through even though it’s going to be still exceptionally difficult.”

As opposed to crises what is difficult? What does difficult look like?

If we look at this through the 5 stages of grief analogy:

1. Denial
2. Anger / Resentment
3. Bargaining
4. Depression
5. Acceptance

Then I would say, although everyone goes through these phases at different speeds; collectively our country is in stage one Denial.

Shouldn’t there be 6 stages here? Where is blame?. Watch Fox and MSNBC and they are in a mix of denial, anger and blame.

Geithner seems to say that we have to make a lot of changes to make the economy less vulnerable to “catastrophic” damage.

I know that the federal government is trying to do everything they can to keep all of us in our comfort zone, some more than others, but isn’t this like the over protective mother that keeps their child out of harm’s way to the point where the child is emotionally, socially and environmentally scarred?

By controlling everything and not allowing anything to just fail; are we helping fix or just prolonging the inevitable?

We may not see the banks go into crisis over what is surely coming up from a toxic mixture of unemployment, real estate market collapse, increasing inflation and weakening dollar, but not because they necessarily shouldn’t.

Become a member of the Commercial Real Estate Distressed Assets Association and come help us work on and effect positive change. http://www.credaa.com

JW Najarian

CREPIG
CREDAA