By definition a lender is a private, public, or institutional entity which makes funds available to others to borrow. However, post mortgage meltdown, lenders strict guidelines are not designed to make funds available for both existing, new construction mixed use office, and retail commercial real estate projects. The majority of lenders that our group contacted offered undesirable terms.
We had the pleasure of meeting with Leslie Houston from Wells Fargo. Ms. Houston made it clear that all appliations would be combed and scruitinized by underwriters. All loans would require high capital reserves and borrowers would be held personally liable. Residential property types remain the easiest to finance. Ms. Houston also mentioned that the SBA has a few great programs, and made note of FHA. Many argue that FHA programs are loaded with red tape and some requiring 6 to 12 months to complete.
Based on todays terms boot strapping opportunists must think outside of the box to make ends meet. This includes creating joint ventures, subleases partners, assuming properties, owner financing, and most importantly finding ways raise capital independently.
Based on todays terms boot strapping opportunists must think outside of the box to make ends meet. This includes creating joint ventures, subleases partners, assuming properties, owner financing, and most importantly finding ways raise capital independently.
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