💥Bank Loan Frenzy Crashes!
The Lending Bubble Finally Bursts
In the heart of Brooklyn, the tallest tower's financial stability is as shaky as a Jenga tower mid-game, thanks to Silverstein Capital Partners.
They're not playing games anymore, signaling a serious move by starting foreclosure proceedings against JD’s Development.
Meanwhile, Fitch Ratings is sounding the alarm over multi-family loans.
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Fitch suggests that loan defaults could skyrocket, particularly as smaller banks have been too generous with loans for high-priced condos.
The apparent overexposure of banks to potentially risky loans, especially in the multifamily sector, could lead to a wave of distressed assets hitting the market.
Additionally, the overall slump in the housing market, highlighted by plummeting home flipping profits and significant price drops in major cities, underscores a broader trend that savvy investors can capitalize on.
In this edition of the AltReports:
🏙 Skyscraper Scrap
💣 Default Disaster
🏚️ Price Plunge
🎈 Bubble Bonanza
💸 Flipping Fumble
Video of the Week: Prepare For The Biggest Eviction Crisis in History
Chart of the Week: Similarities Between Today and The Years Right Before 2008
Podcast of the Week: How to Improve Your Sales Process and Build a Sales Team
Tallest Tower In Brooklyn Staring Down Foreclosure From Silverstein
Oh boy, Silverstein Capital Partners is throwing serious playground sand in JD’s Development's face by moving to take back the tallest tower in Brooklyn.
Guess who didn't stick to their IOUs?
Silverstein is tired of waiting for their lunch money and now they're kicking off a foreclosure.
Multifamily Loan Exposure A Risk To U.S. Banks, Fitch Says
U.S. banks have been partying like it's 2006, lending buckets of cash to multifamily properties, but Fitch is that buzzkill friend reminding everyone the hangover's coming.
So, Fitch is waving a giant red flag, saying loan defaults could go through the roof because banks got a little too swipe-right happy with their loans.
What’s worse, small banks have been throwing cash at overpriced condos which could mean a tougher walk of shame back to stability if stuff hits the fan.
Why Sales of New Houses Held Up, while Sales of Existing Houses Plunged
Shiny new house prices are slumping harder than a teenager's posture—down 19% from their lofty peaks.
That's right, we're talking the lowest numbers since the wild summer of '21.
Yet despite old homes looking like yesterday’s leftovers, new houses are somehow still attracting their squad of buyers.
Housing Bubbles in America, March 2024 Update: Biggest Price Drops from 2022 Peak
The high-flying house prices are finally nosediving from their stratospheric peaks.
Top trophy for the biggest free-fall goes to the once smug San Francisco, followed closely by the techy titans Seattle and Portland.
Denver's doing the downhill dash too, while Phoenix is flaming out faster than an ice cream in hell.
Home Flipping Plummets Across U.S. in 2023 as Profits Slump Again
Well, house flippers are sobbing into their tool belts because 2023 greeted them with a financial faceplant.
Flipping homes has become as lucrative as selling ice in Antarctica, with profits doing a spectacular nosedive.
Seasoned flippers are flipping out as their cash cow goes on a crash diet.