Securing Financing When Your Bank Says No
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Dubel writes that certain credit issues are more of a problem for seasoned investors.
TUSTIN, CA—The commercial real estate market remains competitive at every angle right now. Investors are bidding up the same properties and expanding into tertiary markets, while lenders eager to place capital and fund their loans remain aggressive on their terms. The small-balance space for properties of less than $10 million is dominated by single investors and partnerships, which often have issues that cause a roadblock with their local bank. These banks, which have developed relationships with investors over the years, typically are going to be more conservative when it comes to the transactions they participate in, and frequently are not the right lender for their deal.
While commercial lending is primarily focused upon the asset, borrower issues will still be a concern for lenders. Aggressive lenders that investors typically do not have established relationships with, or direct access to, are finding ways to make these loans work. They are responding to a number of borrower issues that have grown more common over the years, and providing alternative options to address every hurdle…
Securing Financing When Your Bank Says No
