Financing in a time ofUncertaintyRichard A. Hanson, CRENew York, NY

+

+Case/Schiller Housing Index

35% DeclineIn 2 years

+Retail Sales

+Total Public Debt

+30 Year Conventional Mortgage Rate

+Gross Domestic Product

+Civilian Employment

+Civilian Unemployment Rate

+Confidence

+In Search of Financing

We are back in the 60/70’so Equity | Cash Buyers Only Playerso Investment Bankers and Lenders On the sidelines

Fundamentals Still Ruleo Location still everythingo Appraisals more important than ever

Easier to Find the Lenders (just kidding)o Only a few lefto Deals have more equity/less leverage/few participants

+Landscape of Participants

TravelersGroup

Bank ofNew York

HSBC Wachovia PNC Bank Suntrust Citibank Bank of America LaSalle Bank

MBNA South Trust Bank One FleetBostonFinancial

Firstar Corporation

First AmericanNational Bank

5/3 BankJP MorganChaseMerrill LynchWashington

MutualNational City

Bank Wells Fargo

LehmanBrothers Merrill LynchBear StearnsCarlyle

Group Blackstone AG Edwards Alex Brown

William Blair Blackrock FidelityInvestments Legg Mason Prudential

Securities Paine Webber Oppenheimer

Corus AmalgamatedFirst CharterMellonFirst BankOak ParkCountrywide Freemont

Savings

Individual Investors

DE

BT

ME

ZZE

quity

+

+Trust•Working with who you know•Performance is proof•Integrity

+CRE Counseling Process

Technical Competency

Thoughtful Analysis

Critical Inquiry

Trust

ConfidenceOUR knowledge base is challenged

OUR Thoughtful Analysis is searching formeaning in the data

INQUIRY is overloaded with uncertainty

TRUST is at a premium

CONFIDENCE is shaken