Commercial RE
Investor Newsletter

August 17, 2007 Brought to you by JW Najarian

In this issue

·
Subprime Market Woes

·
Dealmaking Defies Market

·
Real Estate Missing Link

·
Taking Stock of Hot Markets

·
Improving Your Cash Flow

·
Good News

·
The Rising Cost of Construction

·
Tax Change Would Cut Partnership Profits

·
7 Reasons Rookie RE Practitioners Fail

·
Rising Foreclosures

·
Derivatives

·
Commercial Mortgage Calculators

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Past
Newsletter Archives

Subprime Market Woes Might be worse than once
thought.

http://www.dealbreaker.com/images/pdf/HaymanJuly07.pdf

This is a great read coming off the heels of Countrywide Financial (CFC)
falling 13%.  While large deal making seems to be at all time highs.

Dealmaking Pop
Defies Rattled Market

Aug 15, 2007 3:39 PM

By
Parke M. Chapman

Widespread volatility in the credit and stock markets wasn't enough to
quash two significant commercial real estate deals.

Read More:  http://nreionline.com/news/Dealmaking_Pop_Defies_Rattled_Market/

Real Estate's Missing Link

Submitted on 08/13/2007

Net Gain Real Estate (A great site you should check out)

A common thread runs through
everything spoken and written about the real estate industry, from
conversations to specialized seminars, and it addresses these questions.
(1) Who is lending and what is the cost? (2) Who is buying or selling, and
what are the price, the capitalization rate, cost per foot, etc. (3) What
legal entities, tax laws, etc. apply?  Consequently, most of the
materials produced by the real estate industry focus on these three areas.
Conspicuously absent from most of the conversations and presentations are
analyses of management skills, approaches, and techniques.

Read More:  http://www.netgainrealestate.com/index.php?q=real_estate_missing_link

Also more great stories at:  http://retailtrafficmag.com/

Taking Stock of Hot Markets

CoStar has
released its 2007 Mid Year 2007 National Retail Report. A feature on its
site runs down some of the hottest markets with commentary from top
brokers.

According to the report, the hottest markets are Phoenix,
South Bay/San Jose, Calif., New York City and Chicago.

Read More:  http://www.costar.com/News/Article.aspx?id=A7602AD80117842248FC1A12E1CAE46D&ref=1

Improving Your
Cash Flow

By Guy McPhail

In my last column I introduced the strategy of budgeting for profit by
starting a profits account for your business that should be funded monthly.
As I noted, the key to making sure that planning for profits pays off for a
small business often lies in the owner's ability to become an expert in
cash flow management.

Cash flow is essentially the movement of money in and out of your business.
Cash inflow generally comes for the sale of goods or services to your
customers (or patients, if you're a doctor). Cash outflow is generally the
result of paying the operating expenses of a business, including salaries.

Good News

LoopNews www.crenews.com

Charlotte Retail Sees Record-Low Vacancy

Retail developments in Charlotte, NC
are experiencing record-low vacancy rates, according to data compiled by
Karnes Research Co. Six years ago, the retail vacancy rate in the region
stood at 9.4%. By the end of 2006, it fell to just 4.9%. That rate has
remained the same through the first six months of this year, despite an
increase in the amount of retail space to 52.3 million sf from 51.8 million
sf. As demand for retail space increases, rental rates also are on the
rise. The average for this year thus far is $19.32/sf from $18.82/sf at the
end of 2006.

San Antonio's Industrial
Market Strengthening

Rents in the San Antonio industrial
real estate market increased 5.2% in the last year, to $5.71/sf from $5.43/sf,
according to figures compiled by NAI REOC Partners. Industrial vacancy
rates dipped during that same period to 12.9% from 14.7%. In addition, more
than 290,000 sf was absorbed during Q2 2007, increasing the total for the
year to 491,923 sf.

North American Hotel Sales Poised For
Record Annual Volume

Staff Report – NREI Newsline

Aug 15, 2007 3:43 PM

A new survey by Jones Lang LaSalle Hotels projects that $48 billion in U.S.
hotel sales could be completed by the end of 2007. If that volume were achieved,
it would represent the fourth consecutive year of record sales volume and a
37% increase from the 2006 volume of $35 billion.

Read More:  http://nreionline.com/news/North_American_Hotel_Sales_Record/

The Rising Cost of Construction

APARTMENT FINANCE TODAY • JULY
2007

Developers struggle to rein in construction costs.

By
Bendix Anderson

As the single-family housing market
began to tank last year, many developers were expecting the cost of
building apartments to drop this year. But prices for labor and materials
keep rising faster than inflation and should continue to rise for the
foreseeable future, experts say.

Read More:  http://www.housingfinance.com/aft/articles/2007/jul/RAGING0707.htm

TAX CHANGE WOULD CUT PARTNERSHIP PROFITS

A proposed tax law change could have an
adverse impact on the income of general, or operating, partners in most
real estate partnerships. The bill, H.R. 2834, would eliminate the
currently favorable tax treatment for certain types of carried interest.
NAR is working to ensure that real estate partnerships are exempt from any
new rule modifying the treatment of carried interest as capital gains.

Read More:  http://www.realtor.org/commercial/07july_tax_change_would_cut_partnership_profits.html

7 Reasons Why Rookie Practitioners Fail

Daily Real Estate News - August 6, 2007

Realtor Magazine Online reports that new real estate
professionals bring energy and ambition to the business, but they also can
make mistakes that will derail their career from the get-go, writes R. Eric
Bramlett, broker and co-owner of One Source Realty in Austin, Texas.

Unlike a traditional office job, real estate is tougher to break into, says
Bramlett. To avoid making rookie mistakes, be sure to steer clear of these
common errors that newbies tend to make.

Not
having a business plan.

Failing
to field a good closing team.

Missing
the right tools

Lacking
the money.

Skimping
on marketing

Spending
marketing money in the wrong places

Choosing the wrong broker.

Read More:  http://www.realtor.org/RMODaily.nsf/pages/News2007080601?OpenDocument

Foreclosures Rise, Bargains Hard to Find

Daily
Real Estate News - August 8, 2007

Real estate professionals specializing in foreclosures in California and
elsewhere say business is brisk, but nowhere near what it was during the
housing downturn in the 1990s. Plus, bargains are difficult to find.

Read More:  http://www.realtor.org/RMODaily.nsf/pages/News2007080802?OpenDocument

Rising Foreclosures: Overload or Opportunity?

RealtyTrac News - Daren Blomquist

Rising foreclosures saturated the headlines, airwaves and blogosphere in
2006 as media of every stripe caught wind of this emerging story.

And it certainly was a story worth some attention. More than 1.2 million
foreclosure filings were reported nationwide during the year, up 42 percent
from 2005 and a foreclosure rate of one foreclosure filing for every 92 U.S.
households – or more than 1 percent of all households –
according to the RealtyTrac U.S. Foreclosure Market Report®.

While rising foreclosures could spell opportunity for many real estate
investors, it also signals the decline of a red-hot market in which rapidly
appreciating home prices quickly multiplied investor dollars. Stagnant home
price appreciation is giving many investors pause, which is decreasing
demand and slowing the market even further.

Derivatives: Can they revolutionize the real estate
industry?

Across the world, derivatives are
an important tool used when investing in stocks, bonds and commodities.
But, commercial real estate is the only major asset class in the world that
doesn't have a supporting derivative market. If it did, the derivatives
market would likely eclipse $1 trillion

Read More:  http://nreionline.com/august_article3.html

Commercial Mortgage Calculators

I have assembled some of the best
calculators I can find online.  Check them out at:  http://www.emeraldbayinvest.com/realestate/Calculator.html

COMMENTARY

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your input, suggestions or article.  I am updating my contact
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"Try not to become a man of success but rather try to become a man of
value."  Albert
Einstein

Kind Regards,

JW Najarian

[email-masked]

JW Najarian

Commercial RE Investor Newsletter

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