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> Getting approval for funds would take 18 to 24 months. “In a typical real estate financing deal, you’re closing that loan within 60 to 90 days,” he says. Who

> Getting approval for funds would take 18 to 24 months. “In a typical real estate financing deal, you’re closing that loan within 60 to 90 days,” he says. Who designs these programs? Yeah, what bank in their right mind would sit around for up to 2 years (aka, until the next administration) to close on a loan? That's insanity! The only orgs getting funding out of these programs are people who already have tons of cash on hand. So only existing real estate barons need apply.

screenobobeano 3y ago
I think it’s a reasonable amount of time, I am a real estate investor. What is your reasoning for these statements?
- alephnerd 3y ago
  What is your average deal size? A commercial renovation probably land in the tens of millions.
- bombcar 3y ago
  I think what people are missing is that "real estate financing" is only part of a real estate deal, especially for commercial properties. And that part might come before, during, or even after securing the property. People need to think less "buying a house" and more "redeveloping an area".
- legitster 3y ago
  Have you really started a deal that took two years to close? Did the property just sit there for two years going unused until it closed? How did you know the seller wasn't going to bolt halfway through? I've never heard of deals taking longer than a year - how does a multi-year transaction with federal funding even work?
  - gopher_space 3y ago
    > Have you really started a deal that took two years to close? Did the property just sit there for two years going unused until it closed? How did you know the seller wasn't going to bolt halfway through? You've just described handling e.g. a dry cleaners or dealing with a single elderly owner.
    - legitster 3y ago
      Sure, you might take years pursing the deal, but what we are talking about is closing on the financing. When you finally shake hands with the elderly owner of the dry cleaners to buy their property, we're talking about another two years after that before they get their money.
chatmasta 3y ago
> Who designs these programs? Interns and entry level executive branch employees design these programs, and then some consultants and lobbyists from the stakeholder industries haggle over hourly payments and retainers until they're happy with the text of the order. Another question you might ask is, who decides to prioritize this program in the first place? How does the WH administration decide to add a program to its agenda?
- alephnerd 3y ago
  > Interns and entry level executive branch employees design these programs Not really. GS-13 and above are fairly competent, but the issue is it's government and you will get some pushback from Political Appointees. The long tail was probably added in order to prevent headlines of abuse like what happened with the PPP program. The lossage would be minimal, but the headlines would be a massive headache, so they were most likely forced to add rigorous validation. > who decides to prioritize this program in the first place? How does the WH administration decide to add a program to its agenda Recommendations from advisors, staffers, career civil servants, and industry partners.
  - chatmasta 3y ago
    I knew you were an insider before I clicked your bio, just based on your non-cynical nomenclature of "industry partners." But hey, at least you're a "recovering policy wonk." :) Out of curiosity, how many "GS-13" employees actually write the technical documentation and legalese themselves, vs. asking their subordinates to produce the initial drafts and then fixing details but missing larger gaps?
  - dmhmr 3y ago
    I disagree based on my decade+ experience working with Federal employees. I would guess that 50% of GS-13 to GS-15 (heck even SES) are mostly incompetent, 40% get the basic minimum of their job complete, and the final 10% shoulder most of the work accomplished. I have come across many GS staff given busy work roles so they are "out of the way" of leadership's objectives. :edit: For folks downvoting me, this is just my personal opinion based on my experience working within IT and cybersecurity. My observations can easily be (and may actually be) untrue elsewhere (as noted by replies to my comment). Early in my career, I was a GS-13 myself.
b112 3y ago
When I was young, in college, I applied for a government job. I thought I could make some extra cash. I went through the interview, was accepted as a candidate, and then ... nothing. So I: * graduated * started working on the field * moved 1/2 way across the country * worked for 2 more years And, a total of 3+ years later, was called and told that "Congratulations, your name is now at the top of the list, and we have an opening. You're hired!" I was completely baffled, and told them I had another job... naturally! (this confused person on the other end of the phone?!). And yet after asking around.. this was normal. Governments do have a different role, being part of the public trust. But still, a very strange world.
- red-iron-pine 3y ago
  sounds like state dept., or maybe something involving clearances
Digit-Al 3y ago
> The funds, typically used to finance rail infrastructure, could now be tapped to help developers of office-to-residential conversions sited near transit facilities. The problem here is that they tacked this onto a program designed for rail infrastructure financing instead of creating a new program. The rules and restrictions were designed for rail infrastructure projects and probably make sense in that context, but make no sense when applied to building projects.
poulsbohemian 3y ago
>Who designs these programs? This is the problem - too often people from industry don't get consulted OR people from industry with deep wallets who want things done a certain way are the only people who get consulted so that they have free reign to create a moat.

screenobobeano 3y ago

I think it’s a reasonable amount of time, I am a real estate investor. What is your reasoning for these statements?

alephnerd 3y ago
What is your average deal size? A commercial renovation probably land in the tens of millions.
bombcar 3y ago
I think what people are missing is that "real estate financing" is only part of a real estate deal, especially for commercial properties. And that part might come before, during, or even after securing the property. People need to think less "buying a house" and more "redeveloping an area".
legitster 3y ago
Have you really started a deal that took two years to close? Did the property just sit there for two years going unused until it closed? How did you know the seller wasn't going to bolt halfway through? I've never heard of deals taking longer than a year - how does a multi-year transaction with federal funding even work?
- gopher_space 3y ago
  > Have you really started a deal that took two years to close? Did the property just sit there for two years going unused until it closed? How did you know the seller wasn't going to bolt halfway through? You've just described handling e.g. a dry cleaners or dealing with a single elderly owner.
  - legitster 3y ago
    Sure, you might take years pursing the deal, but what we are talking about is closing on the financing. When you finally shake hands with the elderly owner of the dry cleaners to buy their property, we're talking about another two years after that before they get their money.

chatmasta 3y ago

> Who designs these programs? Interns and entry level executive branch employees design these programs, and then some consultants and lobbyists from the stakeholder industries haggle over hourly payments and retainers until they're happy with the text of the order. Another question you might ask is, who decides to prioritize this program in the first place? How does the WH administration decide to add a program to its agenda?

alephnerd 3y ago
> Interns and entry level executive branch employees design these programs Not really. GS-13 and above are fairly competent, but the issue is it's government and you will get some pushback from Political Appointees. The long tail was probably added in order to prevent headlines of abuse like what happened with the PPP program. The lossage would be minimal, but the headlines would be a massive headache, so they were most likely forced to add rigorous validation. > who decides to prioritize this program in the first place? How does the WH administration decide to add a program to its agenda Recommendations from advisors, staffers, career civil servants, and industry partners.
- chatmasta 3y ago
  I knew you were an insider before I clicked your bio, just based on your non-cynical nomenclature of "industry partners." But hey, at least you're a "recovering policy wonk." :) Out of curiosity, how many "GS-13" employees actually write the technical documentation and legalese themselves, vs. asking their subordinates to produce the initial drafts and then fixing details but missing larger gaps?
- dmhmr 3y ago
  I disagree based on my decade+ experience working with Federal employees. I would guess that 50% of GS-13 to GS-15 (heck even SES) are mostly incompetent, 40% get the basic minimum of their job complete, and the final 10% shoulder most of the work accomplished. I have come across many GS staff given busy work roles so they are "out of the way" of leadership's objectives. :edit: For folks downvoting me, this is just my personal opinion based on my experience working within IT and cybersecurity. My observations can easily be (and may actually be) untrue elsewhere (as noted by replies to my comment). Early in my career, I was a GS-13 myself.

b112 3y ago

When I was young, in college, I applied for a government job. I thought I could make some extra cash. I went through the interview, was accepted as a candidate, and then ... nothing. So I: * graduated * started working on the field * moved 1/2 way across the country * worked for 2 more years And, a total of 3+ years later, was called and told that "Congratulations, your name is now at the top of the list, and we have an opening. You're hired!" I was completely baffled, and told them I had another job... naturally! (this confused person on the other end of the phone?!). And yet after asking around.. this was normal. Governments do have a different role, being part of the public trust. But still, a very strange world.

red-iron-pine 3y ago
sounds like state dept., or maybe something involving clearances

Digit-Al 3y ago

> The funds, typically used to finance rail infrastructure, could now be tapped to help developers of office-to-residential conversions sited near transit facilities. The problem here is that they tacked this onto a program designed for rail infrastructure financing instead of creating a new program. The rules and restrictions were designed for rail infrastructure projects and probably make sense in that context, but make no sense when applied to building projects.

poulsbohemian 3y ago

>Who designs these programs? This is the problem - too often people from industry don't get consulted OR people from industry with deep wallets who want things done a certain way are the only people who get consulted so that they have free reign to create a moat.