The housing industry is still making its way into national headlines this year — this time, it’s the Federal Housing Administration’s lending program.

Last November, San Francisco Federal Reserve Bank President Janet Yellen gave a speech on the national economy and put the prospects for the commercial real estate market in stark perspective.

Asset-based lending can be more expensive than a bank loan or line of credit, but for some it may be the best choice, providing flexibility and cash flow when others won’t. 

It’s the meeting no business owner wants, an adult equivalent to sitting in the principal’s office.

Only instead of a principal, the person calling you in is a banker. And instead of the dreaded “permanent record,” the folder on the desk is an agreement for a business loan, a line of credit, equipment financing or some other form of borrowed money that helps keep the company afloat.

California is running out of money, pure and simple. As we go to press, the state is finalizing the budget and lurching from one financial crisis to the next thanks to elected leaders who put politics above fiscal responsibility.

The credit crunch and other broad changes in economic conditions cut a wide swath through the ranks of potential buyers. Those who are left are biding their time, lining up cash and waiting for a sweet deal, probably a distressed property at a bargain price. But far fewer multifamily properties are facing the default notices that helped drive down prices for single-family homes, and many landlords are trying to ride out the storm. The result is very few deals.