Star News

Despite signs that the financial system has stabilized, banks remain threatened by billions of dollars of non-performing loans on their balance sheets; and more banking institutions could fail if the economy worsens, a congressional watchdog recently reported. In its latest assessment of the $700 billion financial system bailout, the Congressional Oversight Panel warned that banks still hold many risky loans of uncertain value. If unemployment rises sharply, or the commercial real estate market collapses as many economists fear, the banking system could again lose its footing.

The financial system remains vulnerable to the crisis conditions that the bailout was designed to alleviate. Many of the administration's plans to stabilize the banking system have been effective so far. Those plans include stress testing, added oversight, and higher infusion of new capital to banks. More must be done and there will be no quick fix for the continued stability of the banking system. We will keep you posted…

Penstar recently obtained a loan quote for a 990-unit self-storage property in Southern California. The property is seasoned and currently 84% occupied. The lender is offering a 10-year fixed rate loan at 7.45% with a 25-year amortization. For more information, please contact David Stepanchak at (818) 883-9611 or DStep@PenstarAdvisors.com.

Hot Money
Lender Seeking Permanent Loans for Properties in Texas

Penstar identified a lender actively financing office, retail, multi-family, and self storage in major Texas markets. Loans offered range from $1 million to $5 million, at a 75% loan to value, with terms of 1 to 5 years and at a fixed rate of 6.75% with no prepayment penalty. All loan terms are a maximum of 25 years, and require full repayment guarantees. To learn more, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com..

Helpful Humor

The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week

“Doping?”

At the stables of a local horseracing track, the Course Clerk observed a trainer administering to a horse just before the commencement of a race. Suspicious, the clerk asked the trainer, “Are you doping this horse?”

The trainer smiled and responded, “Indeed I am not, Sir.” “’Tis' just lump sugar. Look, I'll take a bite myself,” continued the trainer, and he proceeded to eat some of the sugar.

“Sorry,” replied the clerk, “but we have to be careful.” The clerk hesitated, adding, “I would like to have a bit of sugar myself.” The trainer handed him a morsel.

When the Clerk disappeared, the trainer issued the jockey last-minute instructions: “Don't forget the drill: Hold him in ‘til the last four furlongs. Don't worry if anything passes you, it'll be me or the Clerk of the Course!”