http://carfreeinsuranceonline-quote.blogspot.com
Bridge and hard money lending is back! Since the collapse of Lehman Brothers over 29 months ago, this class of loans was available - but nearly impossible to actually close. The reason was simple: very few properties and projects had a viable exit strategy. Now that private lending and conventional lending is back and truly available, the private money world is much more comfortable lending money and knowing there is a high probability of the borrower being able to retire the debt through another funding source.
In the past, the hard money world was dominated by 10 or 12 major nationwide players. Out of the collapsed market, I have found more than 30 major players with cash on their books and a very eager spirit to lend. What has changed for 2011, however, is the scope of their lending footprint. Most of these private funders want to stay within a 200 to 300 mile radius of their offices. Why? Because they simply do not have to go far to find great properties that fit well within their "strike zones". Further, they are more comfortable lending in their own backyard rather than pouring their capital into an unfamiliar market.
Besides being much more regional in their funding behaviors, you can expect them to be more aggressive in making sure their capital is returned. Most of these lenders have no interest in acquiring the subject property. They simply want to make money on the loan and move on to the next transaction. To ensure the borrower is motivated to retire the debt, the private money lenders are universally asking for some type of cross-collateral. Lastly, a borrower must absolutely have a rock-sold exit strategy. Unfortunately, the sale of a property is not an acceptable exit strategy for most loans in the class for the year ahead.
If we can be of any assistance to you in placing and structuring your short term commercial loans, please do not hesitate to call us at the number below.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น