Developers etc. if you are in need of another round of funding, the grim news is you may not survive

Benchmark

Bottom has arrived in Manhattan when 20% down will buy the apartment and allow the comparable rent to carry the mortgage and expenses on an after-tax-benefits basis.

Till then hard times for sellers will continue....

Can you explain what "developers in another round of funding" means?. I don't really know the "phases" of new project real estate financing, not my field of finance, but I sort of thought that before you get going -- buy the land, certainly before breaking ground -- that all financing needed to complete to occupancy level would be in place. Therefore, I don't know what you mean by another round. If you are referring to a project is totally new...nothing concrete done yet...well, of course, it ain't going to happen.

In other words, "another round", implies an "earlier round", but I would think you wouldn't get financing without having it all lined up to completion stage, but, again, I'm not a real estate finance person.

HT1, you can lump finance-type owners in there with developers. Anyone who was counting on a big bonuses for 2007-2012 to pay down their mortgage/cover their monthly nut just watched that dream die. If the money you have left after paying taxes on your '08 bonus (assuming you got a bonus in '08) doesn't cover your expenses sell now, even if for a small loss, lest you die the death of 1,000 cuts.

I did read about projects which had hefty cost overruns and the developer is now in trouble - can't even get a bridge loan to get to the finishing line. These are ot the big NY players - at least up to now.
Or the opposite: building is ready for sale but yday's and today's buyers want/demand lower prices. His loan agreements with the banks don't allow ANY wiggle room. Buyers give up

http://watch.bnn.ca/the-close/april-2009/the-close-april-7-2009/#clip158804

at around 10 min into the talks

HT1, great clip. everyone, make sure you watch part 2 as well. with Meredith Whitney, she of dollar dominatrix fame (i do so love dealbreaker sometimes).

also, to add my own collection of grim data,check out these charts from the IMF at econbrowser:

http://www.econbrowser.com/archives/2009/04/how_bad_is_this.html

Barron's has the insider trading chart at around 40, an increase of about 4 times over the past week. Anything over around 15 is bearish (ht steve barry, big picture commenter).