The Commercial Academy J. Scott Scheel goes over the massive defaults that will certainly strike the industrial property market.
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J. SCOTT SCHEEL: "The good news is, is that there's possibilities for these points to reverse for capitalists. However the trouble is that with the Troubled Possession Deferral Program, which is part of the CARES Act, nobody has reported on these for 18 months. We have 18 months of defaults that are all going to start hitting now. That happened, that program terminated since January 1, 2022, and also they have actually obtained 60 days to report it. So by the second quarter of this year, those things are going to begin to come out and financial institutions are going to have to manage that. To ensure that's going to be a big dilemma in and of itself. And afterwards clearly, we understand that the banks, when they start to tackle defaulted properties, they're not actually in a placement to make car loans. Therefore, so many of those properties that did support but have currently been harmed are mosting likely to be hamstringed muscle by their annual report due to the fact that 3 years of historical operating statements will not actually exist to sustain new debt with worths dropping. There's mosting likely to be a lot of blood in the roads as well as a great deal of folks who are going to be seeking safe house."
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