Michael Derk at the June 2009 LBCREC First Friday Breakfast

On Friday, June 5, 2009, LBCREC welcomed Michael Derk, Senior Director of Marcus & Millichap Capital Corporation (MMCC) as our guest speaker. More than 65 commercial real estate professionals attended the breakfast and learned how to obtain the best deal for commercial and multi-family loans. Michael’s well received presentation gave an overview on lenders that are actively doing loans and the ideal borrower profile that would have a better chance of getting loan approval. The landscape has changed dramatically from even just six months ago. Many underwriting practices considered “normal” in yesterday’s market (non-recourse, interest only, 90% LTV) are not likely scenarios in today’s market. Michael talked about loans that will be difficult in today’s market, such as churches, hotels and schools, for example. On the bright side, deals are getting done; Michael presented several recently closed retail and multi-family deals and gave a thumbnail sketch on what each borrower must do to get their loan approved. He also discussed his prognostication on what the future holds.