• Market rents fell 2% to 4% U.S. wide due to growing unemployment in the multifamily market place during 2009.
• Occupancies fell 2% to 3% nationally but rose in many markets during the 3^rd and 4^th quarters after reaching lows.
• Some markets have large oversupplies of single family homes.
• Relatively, losses were muted in multifamily in general and in older B & C stock in particular because demand was bolstered by households seeking lower cost living.
• Economies with large healthcare, federal government, and education presence  have  fared better.
• Many properties acquired debt at 80% Loan to Value (LTV).  The market won’t support these values creating technical defaults.  The added pressure of weaker occupancy and downward rent pressure is forcing many toward or into foreclosure.  Because  of this there is a growing volume of Real Estate Owned (REO) properties, distressed properties, and note sales available.
• Some note sales are moving at as little as 33 cents on the dollar.  40% to 45% is more common.
• Debt from all but the Agencies (Fannie Mae, Freddie Mac, and FHA) is very difficult to acquire from banking sources.

Private lending rates begin at 12% for most deals.  Private lenders are looking for limited leverage.

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